Financial Times FT.com

Brazil's political corruption scandal gathers pace with admission of fraud

By Raymond Colitt in São Paulo

Published: July 20 2005 03:00 | Last updated: July 20 2005 03:00

Brazil's opposition parties filed a lawsuit against President Luiz Inácio Lula da Silva's Workers' party yesterday after its former treasurer admitted raising funds illegally to finance election campaigns.

If the Supreme Electoral Tribunal finds against the ruling PT, several congressman could lose their mandate and the party could lose its public financing before next year's election or even its licence to operate as a political organisation.

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