| RIO DE JANEIRO
RIO DE JANEIRO A previous senior govt of Brazilian engineering company Odebrecht SA [ODBES.UL] has accused President Michel Temer of presiding about a meeting to solicit a 40 million reais ($13 million) illegal payment in 2010, according to online video testimony released on Tuesday.
Prosecutors have mentioned Temer are unable to be investigated for offenses committed in advance of he assumed the presidency in 2016, but the testimony could dent his reliability as he seeks unpopular reforms to restore confidence in Brazil’s overall economy.
Govt Marcio Faria da Silva, the previous vice president of Odebrecht’s industrial wing, mentioned in the online video testimony that the meeting took area in Temer’s legal place of work in Sao Paulo.
In addition to Temer, previous reduced household speaker Eduardo Cunha and Congressman Henrique Eduardo Alves from Temer’s PMDB bash took component, according to testimony which was amid a trove of plea bargains by Odebrecht executives produced public by a Supreme Court justice on Tuesday.
Temer’s place of work confirmed in a statement he experienced met with Faria in 2010 in the presence of Cunha, but denied that Alves participated. It mentioned Temer experienced never ever discussed values with Faria.
Justice Luiz Edson Fachin released the testimony this 7 days immediately after saying investigations into almost one hundred senior politicians as component of the Procedure Car War probe into political kickbacks on contracts with condition organizations, particularly oil business Petroleo Brasileiro SA.
The Odebrecht govt alleged that, while Temer did not speak about any figures, Cunha produced it obvious that a payment was anticipated.
“Eduardo Cunha spoke. He spelled out that we ended up seeking a deal with Petrobras. A determination that it would be signed would involve a extremely important contribution to the bash,” Faria mentioned.
Reps for Alves and Cunha, who is in prison pending demo on other costs, could not be immediately attained for comment.
The new allegations arrived at a time when Temer is hoping to slash welfare investing and incentivize non-public expense, moves which have lifted Brazil’s stockmarket and forex. The veteran politician now faces a case in Brazil’s top rated electoral court docket about illegal funding of the 2014 election when he was the working mate of previous President Dilma Rousseff.
“Quick AND SUPERFICIAL”
Temer’s place of work mentioned in its statement that the dialogue with Faria in 2010 was “speedy and superficial” and did not touch any discussion of Petrobras contracts or financial amounts.
“The president categorically disputes any involvement of his title with vested interests,” the statement mentioned. “He never ever acted in the title of special interests in Petrobras nor defended the payment of incorrect values to 3rd-events.”
The volume of the payment allegedly asked for in the 2010 meeting was based mostly on a five per cent levy on a deal in between Odebrecht and Petrobras worth 825 million reais for the routine maintenance of the condition oil companies’ assets in 9 nations around the world.
Asked if it was obvious the meeting was to request a bribe, Faria explained to investigators: “It was plainly about an unfair gain, due to the fact it was a share on top rated of a deal.”
The govt mentioned that after the deal was gained, the payment was produced in hard cash in Brazil and to foreign lender accounts. The PMDB took 4 per cent of the price of the deal, leaving 1 per cent for the remaining-leaning Staff Bash that managed the presidency at the time.
($1 = 3.1215 reais)
(Reporting by Pedro Fonseca in Rio de Janeiro Crafting by Daniel Flynn Editing by Andrew Hay)