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Zelenskiy flags shake-up after corruption allegations

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  • Zelenskiy says changes coming in government, regions Corruption allegations are most high-profile of war
  • Ex-economy minister praises government response
  • Ruling party boss threatens officials with jail

KYIV, Jan 23 (Reuters) – Ukrainian President Volodymyr Zelenskiy said on Monday that changes would be announced imminently in the government, the regions and in the security forces following allegations of corruption nearly a year into Russia’s invasion.

Zelenskiy, elected by a landslide in 2019 on pledges to change the way government operated, did not identify in his nightly video address the officials to be replaced.

“There are already personnel decisions – some today, some tomorrow – regarding officials of various levels in ministries and other central government structures, as well as in the regions and in the law enforcement system,” Zelenskiy said.

The president said part of the crackdown would involve toughening oversight on travelling abroad for official assignments.

Ukrainian media outlets have reported that a number of cabinet ministers and senior officials could be sacked as Zelenskiy tries to streamline the government.

One of the president’s top allies earlier said corrupt officials would be “actively” jailed, setting out a zero-tolerance approach after the allegations came to light.

HISTORY OF CORRUPTION

Ukraine has a long history of corruption and shaky governance, though there have been few examples since last year’s invasion as Kyiv has sought Western financial and military support to help fight back Russian forces.

Anti-corruption police on Sunday said they had detained the deputy infrastructure minister on suspicion of receiving a $400,000 kickback to facilitate the import of generators into wartime Ukraine last September.

A committee of parliament agreed on Monday to toughen regulations on procurement after allegations in news reports that the defence ministry had overpaid suppliers for soldiers’ food. A draft law was to be introduced on partially making procurement prices public in times of conflict.

Defence Minister Oleksiy Reznikov, quoted by media, told the committee that the reports were based on a “technical error” with no money changing hands.

The National Anti-Corruption Bureau said it was aware of the media report and that it was investigating the possible crime of appropriation of funds or abuse of power with regard to procurement worth over 13 billion hryvnia ($352 million).

David Arakhamia, head of Zelenskiy’s Servant of the People party, said it had been made clear since Russia’s invasion that officials should “focus on the war, help victims, cut bureaucracy and stop dubious business”.

“Many of them got the message. But many of them did not unfortunately. We’re definitely going to be jailing actively this spring. If the humane approach doesn’t work, we’ll do it in line with martial law,” he said.

Timofiy Mylovanov, a former minister for the economy, trade and agriculture, praised the government’s “proactive and very fast” response to the allegations. He said the deputy infrastructure minister had been immediately fired and pointed to society’s “unprecedented” level of attention in the matter.

Ukraine, whose economy shrank by a third last year, is hugely dependent on Western financial aid and donors such as the International Monetary Fund and EU have repeatedly asked for more transparency and better governance.

($1 = 36.9250 hryvnias)

Reporting by Tom Balmforth and Olena Harmash; Editing by Peter Graff and Stephen Coates

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Ukraine pledges sweeping personnel changes as allies jostle over tanks

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  • Zelenskiy promises changes amid corruption scandal
  • Poland says it is planning to send Leopard tanks to Ukraine
  • Germany hints at tank export approval as allies apply pressure

KYIV, Jan 24 (Reuters) – Ukrainian President Volodymyr Zelenskiy said personnel changes were being carried out at senior and lower levels, following the most high-profile graft allegations since Russia’s invasion that threaten to dampen Western enthusiasm for the Kyiv government.

Reports of a fresh scandal in Ukraine, which has a long history of shaky governance, come as European countries bicker over giving Kyiv German-made Leopard 2 tanks – the workhorse of armies across Europe that Ukraine says it needs to break through Russian lines and recapture territory.

“There are already personnel decisions – some today, some tomorrow – regarding officials at various levels in ministries and other central government structures, as well as in the regions and in law enforcement,” Zelenskiy said in his nightly video address on Monday.

Zelenskiy, who did not identify the officials to be replaced, said his plans included toughening oversight on travelling abroad for official assignments.

Several Ukrainian media outlets have reported that cabinet ministers and senior officials could be sacked imminently.

On Sunday, anti-corruption police said they had detained the deputy infrastructure minister on suspicion of receiving a $400,000 kickback over the import of generators last September, an allegation the minister denies.

A newspaper investigation accused the Defence Ministry of overpaying suppliers for soldiers’ food. The supplier has said it made a technical mistake and no money had changed hands.

David Arakhamia, head of Zelenskiy’s Servant of the People party, said officials should “focus on the war, help victims, cut bureaucracy and stop dubious business”.

“We’re definitely going to be jailing actively this spring. If the humane approach doesn’t work, we’ll do it in line with martial law,” he said.

‘SPRING WILL BE DECISIVE’

On the battlefront, front lines have been largely frozen in place for two months despite heavy losses on both sides.

Ukraine says Western tanks would give its ground troops the firepower to break Russian defensive lines and resume their advance. But Western allies have been unable to reach an agreement on arming Kyiv with tanks, wary of moves that could cause Moscow to escalate.

Berlin, which must approve Leopard re-exports, has said it is willing to act quickly if there is a consensus among allies.

Polish Prime Minister Mateusz Morawiecki, whose country borders Ukraine, said Warsaw would seek permission to send Leopard tanks to Kyiv and was trying to get others on board.

Germany is not blocking the re-export of Leopard tanks to Ukraine, the European Union’s top diplomat said on Monday.

American lawmakers have pressed their government to export M1 Abrams battle tanks to Ukraine, saying even a symbolic number would help push European allies to do the same.

Britain has said it will supply 14 Challenger 2 tanks. French President Emmanuel Macron said he did not rule out the possibility of sending Leclerc tanks.

Moscow sought to apply its own pressure.

“All countries which take part, directly or indirectly, in pumping weapons into Ukraine and in raising its technological level bear responsibility” for continuing the conflict, Kremlin spokesperson Dmitry Peskov said.

Ukraine and Russia are both believed to be planning spring offensives to break the deadlock in what has become a war of attrition in eastern and southern Ukraine.

“If the major Russian offensive planned for this time fails, it will be the ruin of Russia and Putin,” Vadym Skibitsky, deputy head of Ukraine’s military intelligence, said in an interview with news site Delfi.

One person was killed and two injured in Russian shelling of a residential district of the town of Chasiv Yar on Monday that damaged at least nine high-rise buildings, Pavlo Kyrylenko, governor of Donetsk region, said on Telegram.

“The Russians are deliberately terrorizing and killing the civilian population. And they will pay dearly for this,” he said.

Reuters could not independently verify battlefield reports.

‘ACTING AGAINST THE WEST’

In the 11 months since invading Ukraine, Russia has shifted its rhetoric on the war from an operation to “denazify” and “demilitarise” its neighbour to casting it as defence against an aggressive West. Kyiv and its Western allies call it an unprovoked act of aggression.

On Monday, the new general in charge of Russia’s military operations in Ukraine warned that modern Russia had never seen such “intensity of military hostilities”, forcing it to carry out offensive operations.

“Our country and its armed forces are today acting against the entire collective West,” Chief of the General Staff Valery Gerasimov told the news website Argumenty i Fakty.

Military reforms, announced mid-January, could be adjusted to respond to threats to Russia’s security, which include Sweden and Finland’s aspirations to join NATO and “the use of Ukraine as a tool for waging a hybrid war against our country,” he said.

Ukraine imposed sanctions on 22 Russians associated with the Russian Orthodox Church for what President Zelenskiy said was their support of genocide under the cloak of religion.

Reporting by Reuters bureaus; writing by Costas Pitas and Himani Sarkar; Editing by Stephen Coates

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Vietnam president quits as Communist Party intensifies graft crackdown

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  • President highest-profile casualty of graft crackdown
  • Phuc blamed for conduct of officials under him
  • Hundreds of officials hit by ‘blazing furnace’ campaign
  • Phuc’s downfall widely expected

HANOI, Jan 17 (Reuters) – Vietnam President Nguyen Xuan Phuc has resigned after the ruling Communist Party blamed him for “violations and wrongdoing” by officials under his control, the government said on Tuesday, in a major escalation of the country’s anti-graft campaign.

Phuc, a former prime minister widely credited with accelerating pro-business reforms, held the largely ceremonial post of president since 2021 and is the highest-ranking official targeted by the party’s sweeping corruption crackdown.

Vietnam has no paramount ruler and is officially led by four “pillars”: the party’s secretary, the president, prime minister and speaker of the house.

Phuc, 68, was ultimately responsible for offences committed by many officials, including two deputy prime ministers and three ministers, the government said.

“Fully being aware of his responsibilities before the party and people, he submitted an application to resign from his assigned positions, quit his job and retire,” it said in statement.

Phuc’s office could not immediately be reached for comment and it was not clear if a replacement has been chosen.

Vietnam has been rife with speculation he would be removed following January’s dismissal of two deputy prime ministers who served under him, as the party doubles down on a “blazing furnace” anti-corruption drive led by its powerful long-serving chief, Nguyen Phu Trong.

Last year, 539 party members were prosecuted or “disciplined” for corruption and “deliberate wrongdoings”, including ministers, top officials and diplomats, according to the party, while police investigated 453 corruption cases, up 50% from 2021.

Trong earlier this month said the party was “more determined” and “more effective and methodical” in its approach, and vowed to deliver results.

IMPACT UNCERTAIN

Opinions vary on the impact of the anti-graft drive on investment and policy.

Le Hong Hiep of the Vietnam Studies Programme at the Singapore’s ISEAS-Yusof Ishak Institute said the purge could pave the way for cleaner more capable leaders to rise.

“As long as the leadership reshuffles do not lead to radical policy changes, their impact on the economy will also be limited,” Hiep posted on his Facebook account.

However, Ha Hoang Hop, a senior visiting fellow at the same institute, said Phuc’s demise and uncertainty over the impact of the crackdown could unnerve investors.

“This could lead Vietnam to a time of instability that would worry foreign friends and investors,” he said.

Phuc’s resignation requires approval from the legislature, which sources on Monday said would hold a rare extraordinary meeting this week, adding to expectation that Phuc’s fate had been sealed.

Phuc, who was known in Vietnam for his friendly approach and love for the national soccer team, was once tipped as a future party General Secretary, the state’s most prestigious job.

As prime minister from 2016 to 2021, he oversaw an average 6% annual economic growth for Asia’s burgeoning manufacturing powerhouse and helped further a liberalisation drive that included trade deals with the European Union and Pacific powers.

Despite his downfall, the government on Tuesday praised his achievements, particularly his pandemic response.

“He has made great efforts in leading, directing and administering the COVID-19 epidemic prevention and control, achieving important results,” it said.

Editing by Kanupriya Kapoor and Martin Petty

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European Parliament kicks out VP Kaili over Qatar graft scandal

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  • Kaili was one of four people arrested in Belgium
  • Greek politician’s lawyer says she denies wrongdoing
  • Police uncovered cash in raids, some in suitcase in hotel
  • European Parliament’s role as bloc’s moral compass at risk

STRASBOURG, Dec 13 (Reuters) – The European Parliament removed Greek MEP Eva Kaili as a vice president of the assembly on Tuesday after she was accused of accepting bribes from Qatar in one of the biggest graft scandals to hit Brussels.

Kaili has denied any wrongdoing, but European lawmakers have moved rapidly to isolate her, worrying that the Belgian investigation will badly dent the assembly’s efforts to present itself as a sound moral compass in a troubled world.

“There will be no sweeping under the carpet. Our internal investigation will look at what has happened and how our systems can be made more watertight,” European Parliament President Roberta Metsola said as 625 MEPs voted to deprive Kaili of her VP role, with only one voting against and two abstaining.

Kaili, who is in police detention, was one of 14 vice presidents in the parliament.

Belgian prosecutors charged her and three Italians at the weekend of taking part in a criminal organisation, money laundering and corruption.

A source close to the investigation has said they are believed to have pocketed money from World Cup host Qatar. The Gulf state has denied any wrong doing.

Police have raided numerous buildings in Brussels, including parliament offices and 19 homes, discovering around 1.5 million euros ($1.58 million), some of it stashed in a suitcase in a hotel room, a source close to the investigation said.

Kaili’s lawyer in Greece, Michalis Dimitrakopoulos, said on Tuesday that she was innocent. “She has nothing to do with financing from Qatar, nothing, explicitly and unequivocally,” he told Open TV in a first public comment.

Several MEPs nonetheless called for the 44-year-old Socialist politician to quit the assembly altogether.

“Given the extent of the corruption scandal, it is the least we could expect of her,” said MEP Manon Aubry, who co-chairs the Left group.

Ali bin Samikh Al Marri, Qatar’s minister of labour, speaks with Greece’s Eva Kaili, vice president of the European Parliament, during a meeting in Qatar, October 31, 2022 in this social media handout image. Twitter/Ministry of Labour – State of Qatar via REUTERS

CORRUPTION

Countries which have faced criticism from the assembly said it had lost the moral high ground.

“From now on the European Parliament will not be able to speak about corruption in a credible manner,” Hungary Foreign Minister Peter Szijjarto wrote on Facebook.

Belgian prosecutors said they had suspected for more than four months that a Gulf state was trying to buy influence in Brussels. Although no state was publicly named by prosecutors, a source with knowledge of the case said it was Qatar.

None of the four people charged have been formally identified, but their names were rapidly leaked to the press.

According to a source familiar with the case, the other accused are former EU lawmaker Pier Antonio Panzeri, Kaili’s partner Francesco Giorgi, who is a parliamentary assistant, and Niccolo Figa-Talamanca, secretary-general of a human rights campaign group.

There were no replies to calls and emails made by Reuters to their respective offices or homes.

Kaili was among a stable of young aspiring Greek politicians who emerged in the debilitating debt crisis which swept Greece from 2010 to 2015. The Greek socialist PASOK party has said it will expel her from its ranks.

In a speech in the European Parliament on Nov. 21, at the start of the month-long World Cup, she lashed out at Qatar’s detractors and hailed the energy-rich Gulf state as “a frontrunner in labour rights.”

Qatar has faced fierce criticism of its human rights record in the run up to the World Cup, including its treatment of migrant workers.

Additional reporting by Phil Blenkinsop, Karolina Tagaris, Clement Rossignol, Max Schwarz, Lefteris Papadimas, Michele Kambas, Alan Charlish, Giselda Vagnoni; Writing by Ingrid Melander; Editing by Edmund Blair and Crispian Balmer

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World

Qatar graft probe damages European Parliament, EU ministers say

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  • Corruption scandal targets European Parliament
  • Four arrested and charged after homes raided
  • Qatar denies allegations it bribed top officials

BRUSSELS, Dec 12 (Reuters) – The European Union’s credibility is at stake, EU foreign ministers warned on Monday, following allegations Qatar lavished cash and gifts on European Parliament officials to influence decision-making.

Greece on Monday froze the assets of a key suspect in the case, Eva Kaili, a vice president in the European Parliament and one of four people arrested and charged in Belgium at the weekend, a source with knowledge of the matter said.

Kaili’s office did not respond to a request for a comment. Qatar has denied any wrongdoing.

Belgian prosecutors searched 16 houses and seized 600,000 euros ($631,800) in Brussels on Friday as part of the probe.

The four unnamed suspects have been charged with “participation in a criminal organisation, money laundering and corruption,” prosecutors said in a statement on Sunday.

The European Parliament said at the weekend it had suspended Kaili from her duties, while the Greek socialist PASOK party announced it was expelling her from its ranks.

According to sources familiar with the case, the three other accused are all Italian citizens — former EU lawmaker Pier Antonio Panzeri, general secretary of the International Trade Union Confederation Luca Visentini, and Kaili’s partner Francesco Giorgi, who is a parliamentary assistant.

There were no replies to calls and emails made by Reuters to their respective offices or homes in Belgium.

“This is an unbelievable incident which has to be cleared up completely with the full force of law,” German Foreign Minister Annalena Baerbock said as she arrived for a regular meeting with her EU counterparts in Brussels.

“This is about the credibility of Europe.”

Irish Foreign Affairs Minister Simon Coveney echoed her concern. “It is damaging. We need to get to the bottom of it.”

Belgian prosecutors said they had suspected for months that a Gulf state was trying to buy influence in Brussels.

A source with knowledge of the case said the state was Qatar. A Qatari official denied at the weekend accusations of possible misconduct.

“Any association of the Qatari government with the reported claims is baseless and gravely misinformed,” the official said.

BACKING QATAR

The investigation comes as World Cup host Qatar is in the global spotlight, amid criticism of its human rights record, including its treatment of migrant workers.

In a speech in the European Parliament on Nov. 21, at the start of the month-long soccer tournament, Kaili lashed out at Qatar’s detractors and hailed the energy-rich Gulf State as “a frontrunner in labour rights”.

“They committed to a vision by choice and they opened to the world. Still some here are calling to discriminate them. They bully them and they accuse everyone that talks to them or engages (with them) of corruption,” Kaili said.

The scandal is particularly awkward for the parliament, which has seen itself as a moral compass in Brussels, seeking tighter rules on the environment or on corporations, issuing resolutions critical of human rights abuses across the globe and taking EU governments to task.

As they arrived at Monday’s EU meeting, ministers were quick to condemn the alleged corruption.

“It is absolutely unacceptable, any kind of corruption,” said Czech Foreign Minister Jan Lipavsky.

“Qatar is an important partner for the energy of the EU,” he noted, while adding: “Of course the relation between the EU and Qatar needs to be built on a set of policies including human rights and labor rights.”

Some European diplomats told Reuters last month that pressure to maintain good ties with Qatar was increasing as the continent headed towards a winter of energy shortages because of the Russian invasion of Ukraine.

The European Parliament was due to vote this week on a proposal to extend visa-free travel to the EU for Kuwait, Qatar, Oman and Ecuador. Some lawmakers have suggested the vote should be postponed. Others have called for a debate on the corruption scandal.

The parliament was scheduled to start it plenary session in Strasbourg at 5 p.m. (1600 GMT), with many members making the trip from Brussels in the morning.

Reporting by Phil Blenkinsop in Brussels and Lefteris Papadimas in Athens; Additional reporting by Sudip Kar-Gupta, Bart Meijer, Charlotte Van Campenhout and Angeliki Koutantou; Writing by Ingrid Melander; Editing by Crispian Balmer

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Interpol confirms red notice for Angolan billionaire Isabel dos Santos

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LISBON, Nov 30 (Reuters) – Global police agency Interpol confirmed on Wednesday it had issued a red notice for Angolan billionaire Isabel dos Santos, daughter of the country’s former president, asking global law enforcement authorities to locate and provisionally arrest her.

Dos Santos, who has repeatedly denied wrongdoing, has faced corruption accusations for years, including allegations by Angola in 2020 that she and her husband had steered $1 billion in state funds to companies in which they held stakes during her father’s presidency, including from oil giant Sonangol.

Portugal’s Lusa news agency reported on Nov. 18 that Interpol had issued an international arrest warrant for dos Santos. But Interpol told Reuters it had issued a red notice instead at the request of Angolan authorities.

It explained that a red notice was “not an international arrest warrant” but a “request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action”.

A source close to dos Santos said on Nov. 19 that she had yet to be notified by Interpol. A spokesperson for dos Santos did not immediately reply to a Reuters request for comment.

According to Lusa, an official document related to the request made to Interpol mentions that dos Santos is often in Portugal, Britain and the United Arab Emirates.

The same document cited by Lusa said dos Santos, 49, was wanted for various crimes, including alleged embezzlement, fraud, influence peddling and money laundering.

Dos Santos has given interviews recently, telling CNN Portugal on Tuesday the courts in Angola were not independent” and judges there were “used to fulfil a political agenda”.

Reporting by Catarina Demony and Patricia Rua; editing by Aislinn Laing and Mark Heinrich

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Brazil’s Bolsonaro avoids concession to Lula, but transition to begin

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BRASILIA/SAO PAULO, Nov 1 (Reuters) – Brazil’s far-right President Jair Bolsonaro on Tuesday avoided conceding defeat in his first public remarks since losing Sunday’s election, saying protests since then were the fruit of “indignation and a sense of injustice” over the vote.

His chief of staff, Ciro Nogueira, speaking after Bolsonaro’s brief public address, said Bolsonaro had authorized him to begin the transition process with representatives of leftist Luiz Inacio Lula da Silva.

It took Bolsonaro more than 44 hours to make his first public remarks since the election was decided by electoral authorities, making him the first Brazilian president to lose a re-election bid. He has still not spoken with Lula.

Amid his silence, supporters blocked highways to protest his defeat, with some calling for a military coup to stop former President Lula from returning to power. Bolsonaro’s delay in recognizing Lula’s election raised fear that he would contest the narrow result of the election.

In a national address on Tuesday that lasted just a few minutes, Bolsonaro thanked Brazilians who voted for him and reiterated that he would follow the country’s constitution, which stipulates a transition of power on Jan. 1.

He referred to the demonstrations as a “popular movement” and said they should avoid destroying property or “impeding the right to come and go.”

[1/13] Brazil’s President Jair Bolsonaro gives a press statement at the Alvorada Palace in Brasilia, Brazil November 1, 2022. REUTERS/Adriano Machado

That may not be enough to defuse the protests across Brazil by small groups of his supporters, which have begun to cause economic disruptions draw calls from farm and retail groups for Bolsonaro to begin a transition.

Close political allies, including his chief of staff and Vice President Hamilton Mourao, have begun to make contact with the Lula camp to discuss a transition. Others, including the speaker of the lower house of Congress, called on the Bolsonaro government to respect the election result.

The powerful agricultural lobby CNA, representing farmers who were important campaign donors for Bolsonaro, said it was ready for conversations with the incoming government, which will take office on Jan. 1.

Before Sunday’s vote, Bolsonaro repeatedly made baseless claims the electoral system was open to fraud and accused electoral authorities of favoring his leftist adversary.

Lula’s victory represents a stunning comeback for the 77-year-old former metalworker, spent 19 months in jail for corruption convictions before they were annulled last year.

Lula has vowed to overturn many of Bolsonaro’s policies, including pro-gun measures and weak protection of the Amazon rainforest.

Reporting by Ricardo Brito, Marcela Ayres and Anthony Boadle in Brasilia, Brian Ellsworth, Nayara Figuereido and Gabriel Araujo in Sao Paulo; Editing by Brad Haynes, Paul Simao and Alistair Bell

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Lula wins Brazil election in political resurrection for leftist

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SAO PAULO/BRASILIA, Oct 31 (Reuters) – Brazilian leftist leader Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a runoff election, but the far right incumbent had not conceded defeat by Monday morning, raising concerns he might contest the result.

Tens of thousands of jubilant supporters took to the streets of Sao Paulo to celebrate a stunning comeback for the 77-year-old former metalworker who, following his previous two-term 2003-2010 presidency, served prison time for corruption convictions that were later annulled.

Bolsonaro is the first Brazilian incumbent to lose a presidential election and Lula has vowed to overturn his legacy, including pro-gun policies and weak protection of the Amazon rainforest.

Pitching the contest as a battle for democracy after his rival made baseless claims the electoral system was open to fraud, Lula called the election a sign Brazilians “want more and not less democracy,” in a victory speech that celebrated what he called his “resurrection.” He promised to unite a deeply divided country.

“I will govern for 215 million Brazilians, and not just for those who voted for me,” Lula said at his campaign headquarters. “There are not two Brazils. We are one country, one people, one great nation.”

The Supreme Electoral Court (TSE) declared Lula won 50.9% of votes, against 49.1% for Bolsonaro. Lula’s inauguration is scheduled for Jan. 1.

Brazil Election Lula wins Brazilian election

The result in Latin America’s largest nation means the left will govern all the region’s major economies after a string of electoral successes from Mexico to Argentina in recent years.

A source in the Bolsonaro campaign told Reuters the president would not make public remarks until Monday. The Bolsonaro campaign did not respond to a request for comment.

“So far, Bolsonaro has not called me to recognize my victory, and I don’t know if he will call or if he will recognize my victory,” Lula told supporters on Sao Paulo’s Paulista Avenue.

In contrast to Bolsonaro’s silence, congratulations for Lula poured in from foreign leaders, including U.S. President Joe Biden, Russian President Vladimir Putin, German Chancellor Olaf Scholz and French President Emmanuel Macron.

[1/6] Brazil’s former President and presidential candidate Luiz Inacio Lula da Silva reacts at an election night gathering on the day of the Brazilian presidential election run-off, in Sao Paulo, Brazil, October 30, 2022. REUTERS/Mariana Grei

Biden congratulated Lula for winning “free, fair and credible elections,” joining the chorus of compliments from European and Latin American leaders.

Markets braced for a volatile week ahead, with Brazil’s real currency and international listings of Brazilian stocks falling as investors gauged speculation about Lula’s cabinet and the risk of Bolsonaro questioning results.

One close Bolsonaro ally, lawmaker Carla Zambelli, in an apparent nod to the results, wrote on Twitter, “I PROMISE you, I will be the greatest opposition that Lula has ever imagined.”

The vote was a rebuke for the fiery far-right populism of Bolsonaro, who emerged from the back benches of Congress to forge a conservative coalition but lost support as Brazil ran up one of the worst death tolls of the coronavirus pandemic.

International election observers said Sunday’s election was conducted efficiently. One observer told Reuters that military auditors did not find any flaws in integrity tests they did of the voting system.

Truck drivers believed to be Bolsonaro supporters on Sunday blocked a highway in four places in the state of Mato Grosso, a major grains producer, according to the highway operator.

In one video circulating online, a man said truckers planned to block main highways, calling for a military coup to prevent Lula from taking office.

PINK TIDE RISING

Lula’s win consolidates a new “pink tide” in Latin America, after landmark leftist victories in Colombia and Chile’s elections, echoing a regional political shift two decades ago that introduced Lula to the world stage.

He has vowed a return to state-driven economic growth and social policies that helped lift millions out of poverty during two terms as president from 2003 to 2010. He also promises to combat destruction of the Amazon rainforest, now at a 15-year high, and make Brazil a leader in global climate talks.

“These were four years of hatred, of negation of science,” Ana Valeria Doria, 60, a doctor in Rio de Janeiro who celebrated with a drink. “It won’t be easy for Lula to manage the division in this country. But for now it’s pure happiness.”
A former union leader born into poverty, Lula’s two-term presidency was marked by a commodity-driven economic boom and he left office with record popularity.

However, his Workers Party was later tarred by a deep recession and a record-breaking corruption scandal that jailed him for 19 months on bribery convictions, which were overturned by the Supreme Court last year.

Reporting by Anthony Boadle and Ricardo Brito in Brasilia, Brian Ellsworth and Lisandra Paraguassu in Sao Paulo; Writing by Frank Jack Daniel, Editing by Brad Haynes, Lincoln Feast, Nick Macfie and Angus MacSwan

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Lula narrowly defeats Bolsonaro to win Brazil presidency again

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SAO PAULO, Oct 30 (Reuters) – Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a runoff election on Sunday that marked a stunning comeback for the leftist former president and the end of Brazil’s most right-wing government in decades.

Brazil’s Supreme Electoral Court declared Lula the next president, with 50.9% of votes versus 49.1% for Bolsonaro. The 77-year-old Lula’s inauguration is scheduled for Jan. 1.

The vote was a rebuke for the fiery far-right populism of Bolsonaro, who emerged from the back benches of Congress to forge a novel conservative coalition but lost support as Brazil ran up one of the worst death tolls of the coronavirus pandemic.

Bolsonaro remained silent on Sunday night after the results were announced and some of his allies publicly acknowledged his defeat, defying expectations that he might immediately challenge the narrow result after making baseless claims of fraud in previous elections.

Bolsonaro did not make a call to Lula, according to campaign advisers.

Lula said in a speech he would unite a divided country and ensure that Brazilians “put down arms that never should have been taken up,” while inviting international cooperation to preserve the Amazon rainforest and make global trade more fair.

“I will govern for 215 million Brazilians, and not just for those who voted for me,” Lula said at his campaign headquarters. “There are not two Brazils. We are one country, one people, one great nation.”

Lula arrived at a rally in Sao Paulo shortly after 8:00 p.m. (1100 GMT), waving from the sunroof of a car. Ecstatic supporters near Paulista Avenue waited for him, chanting slogans and drinking champagne.

Vice President-elect Geraldo Alckmin and campaign aides jumped up and down chanting, “It’s time Jair, it’s time to leave already,” in a video circulating on social media.

OPPOSITION

Last year, Bolsonaro, 67, openly discussed refusing to accept the results of the vote.

[1/16] Brazil’s former President and presidential candidate Luiz Inacio Lula da Silva speaks at an election night gathering on the day of the Brazilian presidential election run-off, in Sao Paulo, Brazil October 30, 2022. REUTERS/Carla Carniel

A senior Bolsonaro campaign aide, speaking on condition of anonymity, said he would not make a speech on Sunday. The Bolsonaro campaign did not respond to a request for comment.

One close Bolsonaro ally, lawmaker Carla Zambelli, in an apparent nod to Lula’s victory wrote on Twitter, “I PROMISE you, I will be the greatest opposition that Lula has ever imagined.”

Electoral authorities are bracing for him to dispute the outcome, sources told Reuters, and made security preparations in case his supporters stage protests.

U.S. President Joe Biden congratulated Lula for winning “free, fair and credible elections,” joining a chorus of compliments from European and Latin American leaders.

His victory consolidates a new “pink tide” in Latin America, after landmark leftist victories in Colombia and Chile’s elections, echoing a regional political shift two decades ago that introduced Lula to the world stage.

Lula has vowed a return to state-driven economic growth and social policies that helped lift millions out of poverty when he was previously president from 2003 to 2010. He also promises to combat destruction of the Amazon rainforest, now at a 15-year high, and make Brazil a leader in global climate talks.

“These were four years of hatred, of negation of science,” Ana Valeria Doria, 60, a doctor in Rio de Janeiro who celebrated with a drink. “It won’t be easy for Lula to manage the division in this country. But for now it’s pure happiness.”

A former union leader born into poverty, Lula organized strikes against Brazil’s military government in the 1970s. His two-term presidency was marked by a commodity-driven economic boom and he left office with record popularity.

However, his Workers Party was later tarred by a deep recession and a record-breaking corruption scandal that jailed him for 19 months on bribery convictions, which were overturned by the Supreme Court last year.

In his third term, Lula will confront a sluggish economy, tighter budget constraints and a more hostile legislature.

Bolsonaro’s allies form the largest bloc in Congress after this month’s general election and won the races for governor in Brazil’s three most economically powerful states, highlighting the enduring strength of his conservative coalition.

Reporting by Brian Ellsworth and Lisandra Paraguassu in Sao Paulo, Anthony Boadle and Ricardo Brito in Brasilia, Gabriel Stargardter in Rio de Janeiro; Editing by Brad Haynes and Grant McCool

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In a first, EU moves to cut money for Hungary over damaging democracy

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  • EU executive proposes taking 7.5 billion euros from Hungary
  • Says remedies proposed by Hungary could work if well implemented
  • 27 EU countries have three months to decide, no veto
  • EU tests new democracy sanction for the first time

BRUSSELS, Sept 18 (Reuters) – The European Union executive recommended on Sunday suspending some 7.5 billion euros in funding for Hungary over corruption, the first such case in the 27-nation bloc under a new sanction meant to better protect the rule of law.

The EU introduced the new financial sanction two years ago precisely in response to what it says amounts to the undermining of democracy in Poland and Hungary, where Prime Minister Viktor Orban subdued courts, media, NGOs and academia, as well as restricting the rights of migrants, gays and women during more than a decade in power.

“It’s about breaches of the rule of law compromising the use and management of EU funds,” said EU Budget Commissioner Johannes Hahn. “We cannot conclude that the EU budget is sufficiently protected.”

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He highlighted systemic irregularities in Hungary’s public procurement laws, insufficient safeguards against conflicts of interest, weaknesses in effective prosecution and shortcomings in other anti-graft measures.

Hahn said the Commission was recommending the suspension of about a third of cohesion funds envisaged for Hungary from the bloc’s shared budget for 2021-27 worth a total of 1.1 trillion euros.

The 7.5 billion euros in question amounts to 5% of the country’s estimated 2022 GDP. EU countries now have up to three months to decide on the proposal.

Hahn said Hungary’s latest promise to address EU criticisms was a significant step in the right direction but must still be translated into new laws and practical actions before the bloc would be reassured.

CORRUPTION

Orban’s government proposed creating a new anti-graft agency in recent weeks as Budapest came under pressure to secure money for the ailing economy and forint, the worst-performing currency in the EU’s east.

Orban, who calls himself a “freedom fighter” against the world view of the liberal West, denies that Hungary – an ex-communist country of some 10 million people – is any more corrupt than others in the EU.

The Commission is already blocking some 6 billion euros in funds envisaged for Hungary in a separate COVID economic recovery stimulus over the same corruption concerns.

Reuters documented in 2018 how Orban channels EU development funds to his friends and family, a practice human rights organisations say has immensely enriched his inner circle and allowed the 59-year-old to entrench himself in power.

Hungary had irregularities in nearly 4% of EU funds spending in 2015-2019, according to the bloc’s anti-fraud body OLAF, by far the worst result among the 27 EU countries.

Orban has also rubbed many in the bloc the wrong way by cultivating continued close ties with President Vladimir Putin and threatening to deny EU unity needed to impose and preserve sanctions on Russia for waging war against Ukraine.

https://www.reuters.com/investigates/special-report/hungary-orban-balaton/

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Reporting by Gabriela Baczynska; editing by David Evans

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