Brazilian labour minister quits amid scandal

RIO DE JANEIRO, (Reuters) – Brazil’s Labour Minis-ter  Carlos Lupi resigned yesterday in the face of mounting  corruption allegations, the latest in a series of  scandal-driven departures from President Dilma Rousseff’s  cabinet.

Carlos Lupi

Lupi announced his resignation in a statement on the Labour Ministry’s Internet website.

“In the face of political and personal persecution in the  media that I have been suffering for two months without the  right of defence and without proof, and taking into  consideration the report of the Ethics Commission of the  Presidency — which has also condemned me in a summary fashion  based on these same media reports without giving me a right to  defend myself — I’ve decided to irrevocably resign my position,” the statement said.

He had decided to resign after meeting with Rousseff, a  Brazilian minister told Reuters on the condition that he not be  named.

Lupi will be replaced by Paulo Roberto dos Santos Pinto, the ministry’s executive secretary, starting today,  Rousseff said in a statement on the Presidency’s web site.

Rousseff has lost six of 32 ministers since taking office  in January and five of those due to scandals involving alleged corruption. The departures have weakened her relations with  coalition parties in Congress that she needs to pass an  ambitious program of social legislation and infrastructure  spending.

The president’s note thanked Lupi for his cooperation and  work in her government and said she “expects him to continue  contributing to the country.”

Most of the departing ministers were holdovers from the  two-term government of her Workers’ Party predecessor and  mentor Luiz Inacio Lula da Silva.

Pressure on Lupi, who has said “only a bullet” could remove him from office, reached a peak on Wednesday when the Public Ethics Committee of the Brazilian Presidency unanimously  recommended he be fired for gross mismanagement.

The committee’s investigation, along with a probe in  Congress, came after the news magazine Veja reported in  November that Lupi aides allegedly demanded kickbacks from charities and other nongovernmental organizations as a  condition of receiving funding from the ministry.

Lupi also allegedly favoured NGOs linked to his PDT Brazilian Workers’ Party and received free air travel aboard an  airplane owned by the head of an NGO financed by the ministry.  After denying knowing the NGO chief, TV news agencies showed  video of the two men together at public events along with the  plane.

The latest allegation is that Lupi received a salary as a  federal congressional employee for six years while at the same time serving, and receiving a salary, as a representative in  the state legislature of Rio de Janeiro the Folha de S. Paulo  newspaper reported on Sunday.

Receiving two government salaries is illegal under Brazilian  law aimed at preventing so-called “double-dipping.”