Brasilia, Brazil
Brazilian President Luiz Inácio Lula da Silva reshuffled his Cabinet this week, doling out posts to allies to shore up his coalition after his chief of staff resigned in disgrace. A leading politician said in a congressional hearing that the aide, José Dirceu de Oliveira e Silva, had encouraged a scheme to pay opposition lawmakers up to $400,000 to join da Silva’s ruling coalition. The president, whose own future appears threatened by the scandal, praised Dirceu for his “competence and honesty,” and said the “unfounded accusations” were designed to topple his left-wing government. Dirceu maintained his innocence. “I am not ashamed of anything that I did,” he said.
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