BRAZIL : Corruption Charge Against President Is a Family Affair

A special congressional commission has begun investigating allegations that President Fernando Collor de Mello’s former campaign treasurer has made a fortune from influence-peddling and corruption.

The allegations, embarrassing Collor as he hosts the United Nations Earth Summit here, came from the lips of his own younger brother, Pedro Collor de Mello.

Pedro, 39, created a government crisis last month by charging in press interviews that the former campaign treasurer had served as the president’s “front man” for the collection of graft money. Fernando Collor called the allegations “senseless and false,” but ordered a federal police investigation to clear up doubts.

Pedro relieved political tensions by emphasizing he had no proof of presidential involvement in corruption. Nevertheless, the scandal continues to complicate the president’s efforts to govern this nation of 150 million and return its ailing economy to health.

The 22-member congressional commission began its work Thursday by taking testimony from Pedro. The questions were generally tame, and Pedro made it clear that his charges are not now aimed at his brother. Where had he heard that President Collor was taking 70% of graft money collected by Paulo Cesar Farias, the former campaign treasurer? From Farias, Pedro said. “He’s a megalomaniac.”

Does he have any proof of a partnership between the president and Farias? “No,” Pedro said.

But earlier, Pedro seemed intent on making the president squirm. He told Brazilian publications he had a dossier on Farias that could bring down his brother’s government. Pedro called Farias the president’s testa de ferro, or front man.

Pedro also told interviewers that Fernando and he had experimented with cocaine and other drugs as youths.

In recent years, Pedro has been manager of the family’s newspaper, television station and radio stations in Alagoas, the poor northeastern state where Collor was governor before winning the 1989 presidential elections. Pedro has said that Collor wanted to use the media group for political purposes and had tried repeatedly to remove him from the manager’s position.

After those attempts failed, Pedro asserted, the president and Farias conspired to create a new media group in Alagoas to put Pedro out of business.

When the scandal erupted, commentators said it might lead to the president’s impeachment or resignation. Leda Collor, Pedro and Fernando’s mother, pleaded with Pedro to withdraw his allegations; she then removed him as manager of the family company.

Now, newspapers are reporting that a deal has been made: Farias canceled plans for a rival media company, Pedro will be given more stock in the family company and will return as manager, and the congressional commission will limit its investigation to accusations against Farias.

But the president will not emerge unscathed. First, considerable damage already has been done to his political credibility. Many Brazilians, recalling a series of previous corruption scandals, are convinced that where there’s smoke there’s fire.

Problems of political credibility add to Collor’s difficulties in bringing inflation down below double-digit monthly figures. And without controlling inflation, it will be hard for him to revive the country’s agonizing economy.

Some analysts wonder how the congressional commission and police can satisfy public demand for a proper investigation of Farias without getting into his relationship with the president.