Brazil’s President Luiz Inácio Lula da Silva faces a possible political setback amid corruption allegations that have brought pressure on an important ally to resign as head of the Senate.
The ally, José Sarney, is a former president and a leader of the Brazilian Democratic Movement Party — the biggest party in Congress. An alliance with Mr. Sarney has helped to ensure voting majorities for Mr. da Silva and his left-leaning Workers’ Party over the years.
Mr. Sarney, who has denied wrongdoing, told reporters in Brasília on Monday that he didn’t plan to resign. “I am in high spirits, I’ve never stopped being confident,” he said.
The Senate ethics committee is to meet this week to discuss a dozen allegations against Mr. Sarney. Federal police say they are investigating some claims.
According to news reports and public claims by opposition politicians, Mr. Sarney advanced legislation through Congress that financially benefited himself, his family and his political allies. Other allegations in articles and broadcasts include evading taxes with an offshore account and embezzling public funds through a charitable organization. The allegations couldn’t be independently verified.
Mr. Sarney may still weather the storm. Even if he steps down as president of the Senate, he will likely remain a senator, many political analysts say.
Still, a resignation would hobble Mr. Sarney just as President da Silva needs him to help shepherd a congressional investigation into accounting practices at state-controlled oil giant Petroleo Brasileiro SA.
Some political analysts say they expect Mr. da Silva’s political opponents to use the Petrobras investigation to seek out potentially harmful information about the management of the company that could be used against Mr. da Silva’s party in national elections next year.
Mr. Sarney also is needed to deliver popular votes for Mr. da Silva’s handpicked presidential successor — Dilma Rousseff, his chief of staff. After two terms in office, Mr. da Silva isn’t eligible for re-election, and Ms. Rousseff’s mediocre popularity ratings suggest she will need cross-party alliances to win.
As the allegations emerged, Mr. da Silva stood by Mr. Sarney, saying that the Senate president should be given the benefit of the doubt and that Mr. Sarney’s history of public service afforded him special treatment. Mr. Sarney, who is recognized for helping Brazil make the transition to democracy from a military dictatorship, shouldn’t pay a political price for the alleged wrongdoing, Mr. da Silva said.
Last week Mr. da Silva moved to cut his ties, signaling in a news conference that he would no longer back Mr. Sarney.