Temer vows to remain in power despite new corruption claims

SAO PAULO: Brazil’s president is vowing to remain in power despite a damaging new corruption allegation, but Latin America’s largest nation could very well be rudderless as long as he stays at the head of what one analyst is calling a “walking dead administration.”

President Michel Temer struck a defiant note on Thursday, promising he would be found innocent in a Supreme Court investigation into allegations that he endorsed a scheme to pay hush money to a former influential legislator who is now in prison for corruption.

But Brazil and his administration will not shrug off the incendiary allegations so easily.

Stock prices and Brazil’s currency were pummelled as investors digested the allegation first reported by the newspaper Globo late Wednesday.

Two small allied parties pulled their support for his agenda in Congress and one Cabinet minister resigned amid talk that others might follow.

As long as Temer stays in power, the political turmoil could leave the country adrift, just as it needs a strong hand to pull its economy out of a deep and protracted recession.

Bills making their way through Congress that would loosen labour laws and shore up the pension system – two measures Temer has said are vital to restoring investor confidence in Brazil – have now stalled.

“If Temer doesn’t fall, he will lead a walking dead administration,” said Claudio Couto, a political science professor at Fundacao Getulio Vargas, a Sao Paulo-based university and think tank.

Globo reported that Temer was recorded endorsing payments to former House of Deputies Speaker Eduardo Cunha.

Cunha has been convicted and jailed in the sprawling corruption probe into kickbacks at the staterun oil giant Petrobras, but many believe he could still give damning testimony about dozens of politicians.

As rumours swirled that he planned to step down, the president emerged to deliver a defiant national address.

“At no time did I authorise the paying of anyone,” Temer said emphatically, pounding his index finger against the podium.

“I did not buy anybody’s silence.” “I will not resign,” he said. The Supreme Federal Tribunal has opened an investigation into the accusation against Temer and lifted the seal on the recording.

At no time did I authorise the paying of anyone. I did not buy anybody’s silence. I will not resign.

Michel Temer