Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Brazil's Rousseff picks allies for second-term cabinet

Published 12/23/2014, 07:15 PM
Updated 12/23/2014, 07:20 PM
© Reuters. Brazilian President Rousseff speaks during breakfast with media at the Planalto Palace in Brasilia

BRASILIA (Reuters) - Brazilian President Dilma Rousseff appointed 13 new ministers on Tuesday, choosing allied politicians in a cabinet reshuffle while trying to avoid any names that could be linked to a widening corruption scandal at state-run oil company Petrobras.

Rousseff will replace Energy Minister Edison Lobao, whose name has appeared in reports of the bribery investigation, with Eduardo Braga, a senator of his same PMDB party, the country's largest, a statement from the president's office said.

Other politicians of the PMDB, a key ally of Rousseff's Workers' Party in Congress, were picked to head other ministries including the ports, civil aviation and agriculture. The second Rousseff administration starts on New Year's Day.

Rousseff has been careful to avoid picking anyone whose name has been linked to the corruption probe. Investigators say billions of dollars in bribes were funneled to parties of the ruling coalition.

The president of Congress' lower house, Henrique Eduardo Alves, a member of the PMDB, said on Tuesday he will not take any ministry until his name has been cleared.

So far 39 people have been indicted on charges that include corruption, money laundering and racketeering.

Prosecutors are expected next year to name politicians who are suspects. On Tuesday, the country's top prosecutor declined to provide Rousseff with names, a day after she said she wanted to check cabinet appointments with the prosecutor.

Prosecutors say the corruption cost taxpayers and minority investors in Petrobras about 10 billion reais ($3.70 billion) in kickbacks.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Appointing allied politicians for the cabinet is crucial for Rousseff to keep the peace within the ruling coalition, which has at times rebelled against her in Congress. That coalition lost ground to dozens of smaller parties in October's general election, which could further complicate Rousseff's efforts to make tough economic adjustments next year.

Rousseff named the outgoing governor of the state of Bahia, Jaques Wagner, a member of her Workers' Party, to the defense ministry.

The leftist leader has already picked most of her new economic team, appointing Joaquim Levy, a banker with no political affiliation, to the finance ministry in November. He will formally take the post in January.

($1 = 2.7029 Brazilian reais)

(Reporting by Reese Ewing; Writing by Alonso Soto; Editing by David Gregorio)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.