Brazilian Scandal: BRAZIL GOVERNOR ARRESTED ON FRAUD SCANDAL

Jakarta Forum - BRASILIA, Brazilian police arrested on Thursday a key opposition party district governor on bribery charges, potentially hurting the right wing`s chances in the general election this year.

Jose Roberto Arruda, governor of the federal district of the capital Brasilia, is accused of taking kickbacks from companies seeking public works contracts.

The scandal, widely publicized since it broke in November, could taint the image of Arruda`s right-wing Democratas party (DEM) before the Oct. 3 general election. DEM is the leading ally of the leading presidential hopeful, Sao Paulo state Governor Jose Serra of the centrist PSDB party.

Arruda turned himself over to police in Brasilia after the Supreme Court voted 12-2 in favor of his arrest. It said he had attempted to obstruct investigations by trying to bribe a witness. The public prosector charged him with attempted bribery and racketeering. He denies the charges.

Prosecutors said they would request an interim administrator for the district because Arruda`s deputies were cited in the alleged kickbacks.

In November, video footage leaked of Arruda accepting large amounts of money during his 2006 election campaign. He said the money was used to distribute sweet bread and toys to poor children in Brasilia.

Other politicians were seen stuffing wads of cash into their pockets and socks. One group was shown praying with an Arruda aide and thanking God for the cash they had received.

The opposition had planned to remind voters this year of a 2005 campaign financing scandal involving President Luiz Inacio Lula da Silva`s Workers` Party, or PT. Now, analysts say, it will be difficult for DEM to take the moral high ground.

Lula, who by law cannot run for a third consecutive term, has chosen his chief of staff, Dilma Rousseff, as the PT`s presidential candidate. She trails Serra by around five percentage points.

Source: aNTARA nEWS