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Brazil's PT Pays Cash to Vice President's Firm, But Has no Record of It |
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Written by Newsroom
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Tuesday, 06 December 2005 |
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Brazil's ruling party, the Workers' Party (PT) issued an official note yesterday, December 5, in reply to charges that it had deposited US$ 460,000 (1 million reais) in a bank account belonging to the Coteminas textile company, which is owned by José Alencar, who is Brazil's Vice President and also the country's Minister of Defense.
The note, signed by the PT's national president, Ricardo Berzoini, and its national financial secretary, Paulo Ferreira, acknowledges a US$ 5 million (11 million reais) debt to the company for 2.75 million T-shirts purchased for the 2004 municipal election campaign.
However, according to the note, "there is no record of a 1 million reais payment to Coteminas in May of this year or of any other payment referring to the liquidation of said debt."
A story published in the newspaper Folha de S. Paulo, states that a 1 million reais cash deposit made on May 17 of this year was identified in a Financial Activities Control Council document.
José Alencar, who is on leave from Coteminas since 2002, defended the company he founded from any wrongdoing. According to him, it's the PT that has give any explanation in the case.
"Coteminas is celebrating 30 years and it doesn't have not even a pin that has not been accounted for in the books. The company has no slush fund, it doesn't sell without receipt and it doesn't buy without receipt. Maybe this is the problem with the company. If it had double accountancy it would not be subject to what is happening."
Alencar said that Coteminas received the money, deposited it and gave a receipt to the PT. The Vice President added that he is ready for any investigation, that, according to him should "be tough as every investigation should be."
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