Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Million-dollar deals detailed in Collor charges Date: Sat, 14 Nov 92 16:22:11 EST Message-ID: \SE A;WORLD \SS (WS) \HD Million-dollar deals detailed in Collor charges \BY Ian Simpson \CR REUTERS NEWS AGENCY \DT BRASILIA, Brazil BRASILIA, Brazil - From shakedowns to funneling millions of dollars into presidential accounts, the indictment against Brazil's suspended president offers a vivid glimpse of influence-peddling that operated at the heart of the government. The charges filed late Thursday against now-powerless President Fernando Collor de Mello and eight aides by Brazil's attorney general detail a ring that allegedly handled $55 million in illegal transactions. Mr. Collor got at least $1.5 million in expense accounts, as well as cars, repair work on an apartment and $4.7 million in garden construction - all free. His wife, Rosane, even got $30,000 in free dental work, the 38-page indictment shows. Although the Brazilian press has dug into the Collor scandal for months and details have surfaced in impeachment proceedings, the indictment gives the first official account of how Mr. Collor's aides allegedly used shadow companies, phantom bank accounts and even a shakedown of Mercedes-Benz of Brazil to get millions for themselves and the president. Besides Mr. Collor, the key figure in the payoffs is Paulo Cesar Farias, Mr. Collor's former campaign manager and the apparent string-puller on nearly every deal detailed in the charges. Mr. Farias was charged Thursday with six counts, including coercion. The money, cars and other benefits Mr. Collor got "were not due to the degree of friendship existing between the president and [Mr. Farias] but because of his exercise of the presidential office," the indictment said. It added, "Farias, personally or through his EPC - Empresa de Participacao e Construcao Ltda. - as well through fictitious persons he created, was the principal and practically the exclusive depositor" into private presidential expense accounts. Mr. Collor, suspended since the lower house of Congress voted impeachment articles against him Sept. 29, was charged before the Supreme Court with passive corruption and forming a criminal group. Passive corruption, considered a common crime in Brazil, means letting corrupt practices occur. If convicted, Mr. Collor could face from one to eight years in prison on each count. Mr. Collor, who took power in March 1990 vowing to fight corruption, has insisted he is innocent and his lawyers have 15 days to present his response. Mr. Collor's vice president, Itamar Franco, has taken over as acting president. The indictment says Mr. Farias gave Mr. Collor $1.5 million from the start of his term until June 1992 for personal and family expenses alone. From July 1990 until April 1992, Mr. Farias also paid out $4.7 million to a company, Brasil's Garden, and its owner for rebuilding gardens at Mr. Collor's residence in Brasilia. The lavish reconstruction is considered the most notorious example of extravagance in Mr. Collor's circle. Mr. Collor also got an armored automobile to transport his sons in Rio de Janeiro, as well as a Fiat Elba Weekend. Other gifts included $85,000 of repairs for an apartment in Maceio, the capital of the northeastern state of Alagoas, where Mr. Collor was governor before becoming president. The indictment said Mr. Farias collected money from an array of businesses, including cement companies, contractors, transport companies and sugar producers. Much of the money was handled through fraudulent billing by Mr. Farias' shadow companies. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM