Brazil's New President Temer Threatened With Impeachment After New Corruption Scandal Emerges

Tyler Durden's picture

Six months after Brazil's former president Dilma Rouseff was removed from power as a result of a carefully orchestrated process by her former Vice President, Michel Temer, who as many suggested at the time, was merely trying to shift attention away from himself and to his former boss due to his "checkered past", swirling with allegations of corruption on par with those of the deposed president, Temer himself may be in danger of impeachment when overnight, Brazil's public prosecutor announced it was studying a possible investigation into whether President Michel Temer put pressure on a former minister to favor a Cabinet colleague's property investment.

Marcelo Calero, who resigned last week as culture minister, told federal police that the president pressured him to resolve a dispute with another Cabinet member, Geddel Lima, president Temer's top government congressional liaison, who was seeking a permit for an apartment building in a historic preservation area of his hometown, a federal police source said.

Calero's accusations have set off new crisis for Temer for allegedly using his public office to obtain a permit for the luxury oceanfront building in the city of Salvador.

Following the news, the Brazilian real slumped as much as 2.2% to 3.4679 reais to the dollar, the biggest intraday drop since Trump's unexpected victory. Traders cited concern that the controversy could derail an overhaul of government finances favored by investors. Simiarly, Brazil's main stock market index, the Bovespa, fell 1.3 percent on concerns of continued political uncertainty delaying recovery from the country's worst recession since the 1930s.

As Reuters adds, adding fuel to the crisis, the Estado de S.Paulo newspaper reported on Friday that Calero secretly recorded his conversations with Temer and Vieira Lima to back his case. If the chief prosecutor's office finds grounds to investigate the allegations it would have to ask the Supreme Court for authorization to allow the probe involving the president, the spokeswoman said, effectively starting a new impeachment process. Confirming this, the leader of the Workers Party in lower house Afonso Florence said that former Culture Minister Calero’s allegation that President Michel Temer pressured him on Lima’s case is “very serious” and may lead to an impeachment request.

 

Michel Temer, 76, and his 32 year old wife, Marcela

Any investigation would be a serious blow to Temer who took office this year vowing to fight corruption.

Shortly after the latest revelations, this morning Lima announced he would step down which in turn prompted a modest snapback rally across Brazilian asset classses.

In an attempt to squash the scandal, presidential spokesman Alexandre Parola confirmed on Thursday evening that Temer spoke with Calero twice in an attempt to avoid conflict over the construction project. But Parola said that the president “never induced any of his ministers to take a decision that breaches internal rules or convictions.” Speaking to Estado, Temer was adamant that the Lima crisis won’t affect Brazil reform votes.

Others are not so certain: Mizuho chief strategist, Luciano Rostagno, said earlier, before Lima resignation, that Brazil assets may suffer further if there’s confirmation that Temer talk with Calero was recorded. "It all depends on whether a recording will emerge confirming whether Temer really pressured the former minister" adding that “The situation would become tough for the debate of reforms.”

He added that if the tapes are disclosed and show improper talks, a new political crisis may emerge, damaging government efforts to approve fiscal reforms, “The environment could become unfavorable for the reforms debate. The population risks going back to the streets to protest against the Temer government."

As Bloomberg adds, the ethics scandal comes at a delicate time for the government, which is pushing for final approval of a key spending cap bill in the Senate. Legislators are already on edge as executives of a leading construction company finalize plea bargains with prosecutors with details on kickbacks to politicians and managers from state-run oil company Petrobras. Leaked tapes and testimonies surrounding the scandal earlier this year heightened political instability that culminated in the impeachment of President Dilma Rousseff in August.

“It all depends on whether a recording will emerge confirming whether Temer really pressured the former minister,” said Luciano Rostagno, chief strategist at Banco Mizuho do Brasil. “The situation would become tough for the debate of reforms.”

Temer’s approval since assuming the presidential position has remains stubbornly low, and stood at 28 percent in September, according to
an Ibope poll commissioned by the National Industry Confederation. Including Lima, since
assuming the presidency on an interim basis in May, Temer has also lost
a total of six ministers over alleged cover ups surrounding an ongoing corruption probe.

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Ghost of PartysOver's picture

Is he a Board Member of the GIC (Global Clinton Initiative for those not playing along)  It seems like he has the corruption part down gretty well. 

Looney's picture

 

If Brazil wants to get more stable, it must do what China and Russia have done – prohibit all NGOs, including USAID, National Endowment for Democracy, and all Soros-sponsored “peaceful” organizations.

Then, maybe, Brazil can start getting its shit together. I think?   ;-)

Looney

Luc X. Ifer's picture

We have to accept that we live in a globalized Bizantine/Levantine/Ottoman world where tribalism and corruption - the peshkash, are the de jour norms of the socio-politic-economic system. And it is a nobrainer how this is going to end.

kliguy38's picture

I can't keep up with which crook is which

BabaLooey's picture

All of them are crooks. No scorecard needed.

ThirdWorldDude's picture

Your memory seems to not serve you well, grasshoppers; right after Rousseff was taken down this May, WikiLeaks showed documents that confirm Temer is a CIA tool... 

Cardinal Fang's picture

Another BRIC in the wall...

Yen Cross's picture

 The guy is 44 years older than his wife???   I'm sure they have a lot in common<

hustler etiquette's picture

The taste of viagra. He tastes the bitter-sweetness of it and she experiences the bitter aftertaste. #showingmyselfthedoor

Mr. Universe's picture

City girls just seem to find out early, how to open doors with just a smile...

Gead's picture

I wasn't a door she opened; nor, with her smile. Zipper and legs. He's one of the asset class. She's one of his more enjoyable ass -ets. I mean........ take a longer look:

http://www.larepublica.ec/wp-content/uploads/2016/09/Marcela-Temer.jpg

Justin Case's picture

Just a trophy tramp sociopath. It ain't about love from her side. It's the glamour, popularity, hook-ups, money snd powa baby!! He's just got a wet noodle and a hangin sack of yesteryear for her.

hustler etiquette's picture

Corruption is the new black and black is always in season.

Fireman's picture

We know they are ALL corrupt but is he a Satanist pedophile? Hardly with an acessory like that.

SloMoe's picture

"Brazil" headline. Where are the womens' volleyball pictures? WTF?

bada boom's picture

Par for the course, isn't it down there?

s2man's picture

And,  the click bait did not let me down.  

My BILs boss has the same age difference with his beautiful wife.   All he had to say to BIL about her was, 'Amazing what can happen when you are a millionaire'.

East Indian's picture

Well, Temer's corruption was a nice excuse for that picture ;-) 

Flounder's picture

I'm sure she is physically attracted to him.

everlearner's picture

The US will go in the same direction if the sense of patriotism gets lost. That's what the libtards want to happen. All this crap about burning the flag and disrepecting the National Anthem is a well planned strategy to turn the US into another Banana Republic like Brazil.

Brazil has as many natural resources as the US (if not more), including 100% of their own oil production. They should be as rich as the US or any developed country.

But because the politicians are so corrupt, they can't get their shit together for the betterment of the country. No patriotism. It's the law of the jungle.

thethirdcoast's picture

Brazil is perhaps the textbook example of how much culture matters.

 

A much lesser known example is Algeria, a country that should be the jewel of the southern Med.

Parafuso's picture

The best thing about Michel Temer is his português...

In Brasil there is, in fact, an oligarchy. You might call it neo-feudal in character. It has been centuries in evolution. Michem Temer imangines himself among them, but he is nearer to being a "puxador", who was the slave who commanded the slaves for the plantation owner.

We just had elections. In a lot of places faces changed, but the underlying issues related to public corruption have not. Certainly not where I live. Almost all public "services" -- street repair, rights of way cleaning and so on are all done by friends and family of the mayor and "councilmen" at prices 2x-3x market rates for the same service. Brasilia is the same, but on steroids.$billion and billions were swiped from Petrobras, Eletrobras, BNDES (state development bank) is another very deep patronage pit.

More interesting is that at the moment there is a law in the legislature that would absolve sitting politicians of taking money off record (politely these are bribes, but in fairness in the US you call them 'campaign contributions', letting them keep the cash and ensure their impunity. Legislators attempted to shove this through in a late night secret vote, but were outed and suddenly thought better of it. They are scared and behaving this way because the testimony given by Marcelo Odebrecht, whose company actually kept a staff specifically to distribute kickbacks, which implicates all of them... and probably their shell companies and off-shore accounts. Just the Swiss have already frozen about US$ 1 billion in Brazilian politicians accounts in the Petrobras matter. They say that 200 federal politicians are implicated and liable to criminal prosecution.

smacker's picture

"[...] he [Temer] is nearer to being a "puxador", who was the slave who commanded the slaves for the plantation owner."

That's the same role that GW Bush played and his successor Obola. Wherever we look, it's the same oligarch clíques running the show from the shadows.

Wahooo's picture

That is one mean-looking, nasty woman.

Lucky Leprachaun's picture

I'd still give her one though.

Justin Case's picture

Well merica can't pick'em like they used to. They like puppets with lotsa skeletons in the closet, but this guy's are just oozing out of every door jam and keyhole. "Get rid of the guy, but keep the girl".

Allen_H's picture

She has a very cold stare, like a psychopath. He is just a al-CIA-da asset, being found guilty of what he accused Rouseff of doing.

gdpetti's picture

So, you are saying it's the Clintons again, only in Argentina???

onmail1's picture

The CIA monster

TyrantObamma legacy