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Corruption Still Lurks Under New Latin Look : Politics: Region’s democratic and fiscal advances aren’t enough to straighten out crooked governments, a series of new scandals shows.

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TIMES STAFF WRITER

It was probably too much to expect that the democratic and fiscal reforms sweeping Latin America for the past decade would suddenly clean up government corruption, a scourge that has plagued the region for centuries.

Indeed, despite the new Latin American look, corruption remains as virulent as ever.

In fact, partly due to free and aggressive media coverage, it has become even more scandalous than was usual in the past, seriously compromising elected governments in such countries as Brazil, Argentina, Colombia, Venezuela and Nicaragua.

Corruption thrives in many Latin American countries because of deep-rooted cultural and political traditions: Presidencies often are “imperial,” with no effective checks on their power. Obligations to family and friends are stronger than rules and regulations. Taking personal advantage of power is expected, as is sharing advantage with a favored few.

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But economic hardship in the 1980s made Latin Americans less willing to wink at graft. And as elected administrations in the 1990s have vowed to make government lean and clean, often imposing painful austerity measures, indignation has grown over the hypocrisy of official rip-offs.

Corruption once might have been ignored or downplayed by a censored or compliant press. Not now; scandals tend to grow under the hard light of media attention.

Some analysts warn that the scandals may endanger democracy in the region. But the troubles also can be read as a sign that official corruption will be harder to get away with.

Here are examples of scandals that have been rocking the region:

Brazil

The controversy here began in May when President Fernando Collor de Mello’s brother, Pedro, denounced a scheme of influence-peddling and graft organized by Paulo Cesar Farias, treasurer of the president’s successful 1989 election campaign. Pedro Collor said Farias was the president’s front man. The Congress formed a special commission to look into Farias’ affairs; it has uncovered a mother lode of incriminating information.

According to leaks by commission members, bank documents show that $2.5 million in checks linked to Farias went into accounts controlled by Collor’s secretary, Ana Acioli, in the last two years. Collor’s wife, Rosane, and her private secretary received checks for $1.3 million, the press has reported.

The commission is to publish a draft report, as early as this weekend or early next week, that could serve as the basis for impeachment procedures against Collor. But his allies in Congress could block impeachment with only 168 of the 503 votes in the lower house.

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Recent street demonstrations demanding impeachment have drawn crowds of 10,000 or more in Rio and Sao Paulo. In an impromptu speech last week, Collor shouted that the scandal was promoted by a “central federation of conspirators” and vowed not to resign.

But some of his top aides have quit, and government business is nearly paralyzed. What is more, the weakened administration appears all but helpless to cope with a recession and inflation of 20% a month.

Argentina

The biggest scandal here began in Spain when Ignacio Iglesias, a Panamanian drug trafficker, told a court that relatives and associates of Argentine President Carlos Saul Menem had used their positions to launder money for drug traffickers.

Iglesias implicated Amira Yoma, Menem’s appointment secretary and sister of his estranged wife; Ibrahim al Ibrahim, a Syrian who is Yoma’s ex-husband and who supervised customs at Buenos Aires’ international airport, and Mario Caserta, a Menem political associate who had been secretary of water resources.

After months of press revelations and judicial investigations, all three have been charged. Yoma is free on bond, Caserta is in jail and Ibrahim is a fugitive.

Maria Servini de Cubria, the first Argentine judge to investigate the case, was suspended and charged with irregularities. Menem denied reports that Servini de Cubria had given the government confidential court information. But suspicions were reinforced this month when the newspaper Pagina 12 published a photograph of the president with his arm around Servini de Cubria’s shoulder.

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Colombia

After the July 22 prison escape of Pablo Escobar, the billionaire boss of the Medellin cocaine cartel, Colombian President Cesar Gaviria suddenly found himself embroiled in a scandal of international proportions.

Obviously, the drug lords had corrupted officials in Gaviria’s administration. And because cocaine corruption is always a danger in Colombia, it seemed remarkable that Gaviria had not taken more effective measures to guard against it in the case of Escobar.

Escobar and other Medellin traffickers had surrendered to authorities last year in response to Gaviria’s offer of reduced sentences. After the escape, it was revealed that Escobar’s cell was a spacious, comfortably appointed apartment in his specially prepared jail. Critics say he controlled security there and continued to conduct his trafficking business.

Gaviria has fired more than 40 officials, including the deputy minister of justice, but it will be difficult to repair damage to government credibility.

Venezuela

Anger over government corruption was said to be a key reason for an abortive military coup against Venezuelan President Carlos Andres Perez in February. Since then, Perez has created a blue-ribbon commission to plan anti-corruption strategy.

But discontent with his administration has fueled violent street demonstrations and an attempt in the Congress to shorten his term.

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Perez’s first administration in the 1970s also was tainted by allegations of corruption, but Venezuela was enjoying an oil boom then and the outrage was muted.

During the harder 1980s, corruption scandals took on greater resonance. The country was not in the mood for more corruption under Perez, who has added to hardship with an economic austerity program.

Nicaragua

In July, the comptroller-general of Nicaragua issued charges of corruption in the office of Antonio Lacayo, President Violeta Chamorro’s son-in-law and chief of staff.

The comptroller’s report said that Lacayo’s deputy and 21 other staff members embezzled more than $1 million from foreign aid intended to relieve poverty.

Chamorro has defended Lacayo, vowing that if he is forced out of government, “Violeta also goes.”

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