Brazil's Presidential Press Secretary's Office issued a note, yesterday, August 2, stating that "at no time" did the discussions between the President and the Portugal Telecom company have to do with "anything not related to the Portuguese company's enterprises in Brazil."

The note points out that President Lula received Portugal Telecom twice, in January, 2003, and October, 2004. The note goes on to say that the meetings "were requested by the company to inform of their new investments in Brazil."

During yesterday's hearing in which Deputy José Dirceu (PT-São Paulo) testified before the Chamber of Deputy's Ethics Council, Deputy Roberto Jefferson (PTB-Rio de Janeiro) claimed that the ex-presidential Chief of Staff had authorized the Brazilian Workers' Party (PTB) to send emissaries to Portugal to negotiate a contribution in the name of the PT to cover the party's debts.

Portugal Telecom is a multinational enterprise with ownership interests in Brazilian telecommunications companies.

ABr

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