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C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 000799 
 
SIPDIS 
 
E.O. 12958: DECL: 06/22/2019 
TAGS: PGOV KCOR BR
SUBJECT: BRAZILIAN SENATE IN TUMULT OVER INTERNAL 
IRREGULARITIES 
 
REF: A. 07 BRASILIA 2233 
     ¶B. BRASILIA 791 
 
Classified By: DCM Lisa Kubiske, reasons 1.4 B and D 
 
¶1.  (C) Summary.  The Brazilian Senate is facing some tumult 
over internal management irregularities, and Senate President 
Jose Sarney has become the target of a media-driven campaign 
to force him out of the presidency.  President Lula spoke in 
defense of Sarney but did not rein in senators from the PT. 
Sarney is hanging on, but may be fighting for his political 
life and reputation.  Behind the scenes there is a political 
struggle pitting the Workers Party and the Social Democrats 
against the PMDB and Democrats, who have administered the 
Senate for over a decade.  The drama will likely continue for 
some time, and it is still too early to tell whether 
meaningful reforms will come and whether any senators or 
parties will suffer consequences.  While we expect Sarney 
will weather the storm, it is fraying relations between the 
PT and its ally the PMDB, whose support is important in next 
year's presidential, congressional, and gubernatorial 
elections.  End summary. 
 
Administrative Irregularities in the Senate 
- - - - - - - - - - - - - - - - - - - - - - 
 
¶2.  (SBU) Changes in the Senate leadership (mesa diretora) 
last February coincided with revelations of gross 
irregularities in Senate management, especially in personnel, 
which resulted in the removal of the long-time 
Director-General of the Senate, Agaciel Maia.  In 14 years 
administering the Senate, Maia accumulated a multi-million 
dollar fortune and hid the value of his personal mansion by 
placing the title in the name of his brother, a federal 
deputy.  Maia's deputy for personnel, Joao Carlos Zoghbi, was 
fired for letting his adult children live in his official 
apartment while lived elsewhere.  It was revealed that there 
were over 100 Senate employees with the rank ) and big 
salary ) of "director," including some with titles such 
"Director of the Senate Parking Garage."  Over 500 secret 
acts were signed to provide employment to relatives of 
senators, including several of Sarney's family members, give 
raises, create positions, and so on.  Many senators may be 
vulnerable to charges of indirect nepotism (hiring other 
senators' relatives on a quid pro quo basis).  Some had used 
official travel allowances to charter private jets; one 
defended himself by stating it was a common practice and not 
forbidden, and Senate rule experts concurred.  Once the 
scandal broke, some of the revelations were probably leaked 
to protect those most under fire and broaden the net by 
implicating as many senators as possible, including those 
calling for investigations of senators associated with the 
irregularities. 
 
¶3.  (SBU) Senators from the Brazilian Social Democracy Party 
(PSDB, opposition), along with senators from the PT, who had 
jointly tried unsuccessfully in February to elect Tiao Viana 
(PT-Acre) as Senate President (while the junior partner in 
the opposition coalition, the Democrats, supported Sarney), 
are pressing to bring about Senate reforms, which could 
result in forcing Senate President Sarney to resign the 
presidency.  The PT and PSDB are also trying to get at the 
two parties that have administered the Senate for many years: 
the Brazilian Democratic Movement Party (PMDB, government 
coalition), and the Democrats (DEM, opposition) by holding 
the presidency and the first secretariat. 
 
Getting at Calheiros through Sarney 
- - - - - - - - - - - - - - - - - - 
 
¶4.  (C) Former Senate President Renan Calheiros, a close ally 
of Jose Sarney, is also a target for his past malfeasance. 
Calheiros was forced out of the Senate presidency in a 
scandal in 2007 (ref A).  While Sarney has been the target of 
the extensive media coverage, Calheiros's political enemies 
are aiming at Sarney to get at Calheiros, too, whom they 
would like to take him down a notch after he "rehabilitated" 
himself by becoming Senate leader of his party, which has the 
Senate's largest bench, with 19 of the 81 Senate seats. 
 
Sarney on the defensive 
 
BRASILIA 00000799  002 OF 002 
 
 
 - - - - - - - - - - - - 
 
¶5.  (C) On June 16 Sarney made an impassioned speech 
defending his own conduct, emphasizing that the Senate 
"crisis" is not about him, but the Senate.  Sarney, a former 
President of Brazil (1985-90), who now represents the state 
of Amapa, was also twice previously President of the Senate 
(1995-97, 2003-2005).  In his speech, he said it was 
inappropriate to attack him as a former President and public 
servant for a half a century.  President Lula, then 
travelling in Central Asia, defended Sarney by saying a 
former president cannot be treated the same a "common 
person."  But Paulo Delgado (protect), a former five term PT 
federal deputy (1987-2007), told us on June 18 that Lula is 
an expert card player and may say one thing in public while 
letting PT Senators stay on Sarney's trail. 
 
¶6.  (C) Media have zeroed in on Sarney as the face of the 
"crisis."  Facing unrelenting media attacks on both himself 
and the Senate, Sarney agreed to implement some reforms and 
study others.  With an already poor public image, now further 
tarnished, the Senate faces the challenge of whether to 
investigate itself superficially to try to satisfy the media 
and the public, or delve deeply and reveal the skeletons in 
its management closet, which would be embarrassing and could 
cost some senators their seats now or in the future. 
According to Senate staffer Thalis Murrieta (protect), the PT 
would like to look deeply, but understands such a move could 
endanger PMDB support for the PT's plan to retain the 
presidency by electing Dilma Rousseff (ref B).  The PSDB is 
under no such constraint, and could lead the charge. 
Murrieta said it is not an open war, and the Senate continues 
to function normally, but inside the Senate everyone 
understands this is partly a struggle between the PSDB and PT 
against the PMDB and DEM.  Moreover, there are elements of 
revenge against the Sarney/Calheiros clique and an internal 
debate about how best to reform the Senate without damaging 
it too much. 
 
Unpredictable Outcome 
- - - - - - - - - - - 
 
¶7.  (C) The alignment of forces has the two leading 
opposition parties, if not in direct competition, at least in 
an uncomfortable relationship with each other.  The largest 
party in the government coalition, the PMDB, similarly lines 
up against the lead coalition party, the PT.  The outcome of 
the Senate crisis is still unpredictable.  Sarney is holding 
firm and shows no signs of resigning from the presidency. 
While we expect Sarney will weather the storm, it is fraying 
relations between the PT and its ally the PMDB, whose support 
is important in next year's presidential, congressional, and 
gubernatorial elections.  The drama will likely continue for 
some time, and it is still too early to tell whether 
meaningful reforms will come and whether any senators or 
parties will suffer consequences. 
SOBEL