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An article entitled ‘Dilma’s New Broom’ in the Financial Times has praised the Brazilian President on her attitude to corruption within the country’s political system.  Since her election in January 2011 a number of prominent exits have come to the forefront largely via media investigations and inter-governmental whistle blowing:

(i) Minister of Transport, Alfredo Nascimento was ousted as a result of a culmination of evidence pointing to over-budgeting of costs for public infrastructural works which were expropriated by the Republican Party (PT), illegal commission payments and ‘lost’ financial resources;

(ii) Minister of Agriculture, Wagner Rossi stepped down from his position after the commencement of a federal police investigation of suspected bidding directions, bribery and other financial schemes;

(iii) Chief of Staff, Antonio Palocci undertook in a series of publically funded and undeclared asset acquisitions estimated at a value of R$ 7.5 million combined with with illegally assuming a position as a consultant of his own real estate administration company.

With costs of corruption amounting to between R$ 50 billion and R$ 84 billion annually (according the Federation of Industries), such actions have serve to improve Rousseff’s approval rating.  Today, the President has a majority in Congress as well as a supporting public who fully support the fight against corruption places – eliminating what the publication refers to as an instilled culture of ‘scratching the backs of coalition partners.’

Rousseff, according to the FT, must now look at ways to reform the high levels of bureaucracy and implement a clear tax reformation strategy – pointing to the fact corrupt officials will always be able to profit from favours unless clear action is undertaken from the core.