Resignation rains on Rousseff’s presidential campaign

The resignation of President Lula’s chief of staff, Erenice Guerra (right), has cast a shadow over the thriving presidential campaign of Workers’ Party candidate Dilma Rousseff, reviving painful memories of the “Mensalao” scandal.

By Joseph BAMAT (text)

Erenice Guerra, President Luiz Inacio Lula da Silva’s chief of staff, has made headlines in Brazil and threatened to spoil a widely forecasted first-round election victory on Oct. 3 for Workers’ Party (PT) candidate Dilma Rousseff.

On Thursday, Guerra presented her resignation letter at the Planalto presidential palace. Over the weekend, news magazine Veja broke a story claiming that Guerra was involved in a kickback scheme for public works contracts run by her son’s consulting firm.

Guerra, once Dilma Rousseff's top aide, took over as Lula's chief of staff when Rousseff quit the job to run for the presidency.

The Erenice scandal, as the affair has already been dubbed, comes on the heels of accusations that members of Lula and Rousseff’s party illegally accessed tax records of rival presidential candidate José Serra's daughter and of other PSDB members in order to build a smear campaign against the opposition party.

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Guerra’s embarrassing exit from the bosom of Lula’s government is a boon for Serra’s camp, which was headed

towards a humiliating first-round defeat, according to opinion polls.

Guerra's resignation has brought back painful memories of the Mensalao scandal that threatened to topple Lula’s government in 2005, and which forever tarnished the image of the Workers’ Party.

Lula, who is leaving office with approval ratings of over 70 percent, has thrown his full support behind Rousseff as his party’s candidate. Until now, Rousseff has enjoyed an almost trouble-free run to become the first woman president of Latin America’s largest country.

Memories of the 'Mensalao'

Back in 2005 the Mensalao scandal saw some of Lula’s top aides, including his chief of staff José Dirceu, resign over cash pay-outs to lawmakers in exchange for votes in Congress. Investigations also uncovered other illegal financial activities, such as granting strategic government posts for kickbacks.

No proof emerged that Lula had knowledge of the monthly payments, but his popularity took a hit, and his failure to secure re-election in the first round of the 2006 election was attributed to the scandal.

Already on Tuesday, former Brazilian president Fernando Henrique Cardoso - still an influential member of Serra’s party - did his best to link past and present scandals together. “It’s the Mensalao all over again.” Cardoso said, referring to the Erenice scandal. “They are in the presidential palace, in the room next to the president, conspiring in favour of one company.”

The now weeks-old tax data scandal involving Serra’s daughter has not resonated with Brazilians. But the Erenice scandal may strike a more offending note among voters.

During Sunday’s nationally televised debate between presidential candidates, Rousseff made a first gesture to distance herself from the embattled Erenice. “I won’t be judged by the personal actions of a former aide,” she told audiences.