Brazil’s top prosecutor charges President Temer with corruption

Reuters: Brazil’s top federal prosecutor charged President Michel Temer on Monday with accepting bribes, the first of what is expected to be a series of formal graft charges against the deeply unpopular leader in the coming weeks.

Prosecutor-General Rodrigo Janot delivered the charges to the Supreme Court, marking a stinging blow to Temer and the first time the public prosecutor has presented charges against a sitting Brazilian president.

Under Brazilian law, the lower house of Congress must now vote on whether to allow the tribunal to try the conservative leader, who replaced impeached leftist President Dilma Rousseff just last year.

Lawmakers within Temer’s coalition are confident they have the votes to block the two-third majority required to proceed with a trial. But they warn that support may wane if congressmen are forced to vote several times to protect Temer - whose popularity is languishing in single-digits - from trial.

Temer’s office and his attorney, Antonio Mariz, did not respond to requests for comment. Temer has repeatedly said he is innocent of any wrongdoing.

Temer was charged in connection with a graft scheme involving the world’s largest meatpacker, JBS SA. Executives said in plea-bargain testimony the president took nearly $5 million in bribes for resolving tax matters, freeing up loans from state-run banks and other matters.

FORMER Brazil Finance Minister sentenced to 12 years

Sao Paulo (Reuters): A Brazilian court sentenced former finance minister Antonio Palocci to 12 years in prison on Monday for corruption and money laundering, potentially bringing the sweeping “Operation Car Wash” graft investigation closer to the financial sector.

The ruling by Judge Sergio Moro adds to the pressure on Palocci, who served as finance minister under former President Luiz Inácio Lula da Silva, to reach a plea bargain with prosecutors in a bid to have his sentence reduced.

A deal is expected to be announced by September, when Prosecutor-General Rodrigo Janot finishes his term and is set to be replaced by an appointee of President Michel Temer.

Palocci, who was chief of staff to Lula’s successor, Dilma Rousseff, has offered to provide details about the kickback scheme under investigation that could hurt Lula’s chances of running in the 2018 election.

Plea bargain testimony from Palocci, once one of Brazil’s most powerful politicians, could widen the scope of investigations currently focused on construction and engineering firms to include banks and other corporations.

Palocci was jailed in September on charges he ran a bribery scheme funneling money to Lula’s Workers Party.

“The responsibility of a minister is enormous and, therefore, so much be the penalty when he commits crimes,” Moro said in his decision.

Palocci is accused of negotiating with Latin America’s largest construction group, Odebrecht, to change the terms of tenders to facilitate the company’s interest in building seven oil rigs for state oil company Petrobras after it lost the first round of bidding.

Janot said in a 93-page opinion, which was sent to the Supreme Court last week and obtained by Reuters on Monday, that he had no doubt that Temer also was guilty of corruption, based on plea bargain testimony from executives at meat packing company JBS.

The executives said in plea-bargain testimony that the president took nearly $5 million in bribes in return for help resolving tax matters, for freeing up loans from state-run banks and other matters.