Brazil’s former president may be dragged into Petrobras scandal

Leaked motion suggests Lula was aware of corruption at state-controlled oil company

Former Brazilian president Luiz Inacio Lula da Silva may be questioned by police. Photograph: David Fernandez/EPA
Former Brazilian president Luiz Inacio Lula da Silva may be questioned by police. Photograph: David Fernandez/EPA

Brazilian police want to question former president Luiz In

ácio Lula da Silva about corruption in state-controlled oil company Petrobras, in the clearest sign yet that the popular leader could be dragged into the country's biggest ever graft inquiry.

In a motion filed with the supreme court last week federal police investigator Josélio Azevedo de Sousa said Lula “may have benefited from the scheme in Petrobras, obtaining advantages for himself, for his party, the Workers Party, and also for his government.”

The possible involvement of Lula in the corruption investigation would be a grievous blow to his embattled Workers Party. It is facing a collapse in support as a result of the scandal and the erratic response to the country’s worst recession in decades by his protege and successor president Dilma Rousseff.

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Though his popularity has dipped in recent months, Lula remains the most popular politician in Brazil and is the only Workers Party leader with any hope of leading it to a fifth successive presidential election victory in 2018. He recently said if the party needed him to, he would stand as its candidate.

No proof

According to details of the police motion leaked to local media, investigators acknowledge they have no proof of the former president’s direct involvement in corruption at Petrobras. But they say they now have testimony from several of those convicted in the affair that “reaches the political and partisan nucleus of [Lula’s] government” and indicates he was aware of what was going on.

The police request does not necessarily mean Lula is or will be formally charged. But in recent months, as the investigation has closed in on senior Workers Party figures, speculation has been mounting that he would be caught up in the inquiry. A large inflatable doll of the former president in prison garb is touring Brazil, appearing at antigovernment rallies.

During an 18-month investigation federal police working with prosecutors have exposed a multibillion euro corruption scheme within Petrobras that saw businessmen pay bribes to politicians in order to win contracts whose values were then artificially inflated, helping saddle the company with the corporate world’s largest debt.

Most of the criminality took place between 2003-2010 during Lula’s presidency, when Ms Rousseff was energy minister and Petrobras chairwoman. Both deny any knowledge of wrongdoing.

Already dozens of businessmen, lobbyists, money launderers and former Petrobras executives have been convicted and sentenced in the case. Investigators are now focusing on the politicians involved and have arrested Lula’s former righthand man as well as the Workers Party’s treasurer.

As part of their investigation police are also seeking permission to question other leading Workers Party figures.

Tom Hennigan

Tom Hennigan

Tom Hennigan is a contributor to The Irish Times based in South America