Minister denies wrongdoing: claims there were no political favors for relatives or his home state of Pernambuco

The minister of National Integration, Fernando Bezerra Coelho, told a
congressional commission yesterday that he had nothing to do with the
appointment of his brother, Clementino Coelho, as acting president of a
regional development corporation, Codevasf, that was housed in his
ministry.

The minister also declared that his home state, Pernambuco, was not
benefited with funding and that earmarks presented by his son, deputy
Fernando Coelho, did not receive favorable treatment.

According to the minister, his brother became acting president of
Codevasf in accordance with corporate statutes that established that
when the presidency was vacant the most senior member of the board of
directors was to take the post.  The brother had been a member of the
board since 2003, the minister pointed out. “The ministry did not
nominate or appoint anyone. Clementino Coelho became president of
Codesvasf due to a vacancy,” explained the minister.

As for benefiting his home state of Pernambuco with civil defense funds
for the repair and prevention of natural disasters, the minister denied
that the decision was detrimental to other states, such as Minas Gerais
or Rio de Janeiro. He emphasized the fact that out of the R$98 million
that went to Pernambuco, R$70 million was for dams on rivers that
flooded in 2010 causing severe damage. “The decision to spend R$70
million was based on technical studies not only made in the ministry,
but by an oversight group linked to the government’s Accelerated Growth
Program (“PAC”). As the PAC budget did not include the dams in
Pernambuco, it was decided to use civil defense funding in the Ministry
of National Integration budget,” the minister explained.

Finally, the minister denied that his ministry gave favorable treatment
to his son’s earmarks (“emendas parlamentares”). Ministerial funding
went to 138 congressmen out of 221 who presented earmarks and the
decision to award funding was technical, said the minister. “It is a
falsehood to say that the only congressman who had 100% of his earmarks
approved was my son. The fact is that 54 of them got 100% of their
earmarks approved,” said the minister.