Page 12 - atoday sept 30
P. 12
A12
WORLD NEWSWednesday 30 September
Brazil’s economy plunging; no relief in sight FBI arrests ten
police in Puerto
BRAD BROOKS A fruit vendor counts his Real bills at a street market in Rio de when Standard & Poor’s Rico crackdown
Associated Press Janeiro, Brazil. Now, Brazilians are suddenly confronting rapidly downgraded the nation’s
RIO DE JANEIRO (AP) — A rising prices on everything from cosmetics to cell phones to sovereign debt this month. DANICA COTO
currency hitting historic medicine to the most basic of consumables. Stockholders are suffering Associated Press
lows. Unemployment at too: Companies listed on SAN JUAN, Puerto Rico
a five-year peak. Con- (AP Photo/Felipe Dana) Brazil’s main Bovespa stock (AP) — The FBI on Tuesday
sumer spending in the market have lost $1 trillion arrested 10 Puerto Rico
dumps, and a grinding an economic model that years while its economy ex- in value since early 2011. police officers accused of
political crisis that’s frozen relied on domestic con- panded created an “ugly Politically, Rousseff is in- stealing drugs and cash,
leaders’ ability to push sumption. toxic mix.” creasingly isolated amid planting evidence and
through Congress mea- “It wasn’t just that Brazil “Add on top of the eco- the worst graft case the taking bribes, prompting
sures to jumpstart a mori- consumed all its commod- nomic train wreck a po- nation has yet seen. Pros- the U.S. territory’s police
bund economy. The news ity income it took in from litical train wreck, and the ecutors say top construc- chief to pledge a wide-
keeps getting worse for the 2007 to 2011, it’s that it con- fact that the government tion and engineering firms spread restructuring of his
once-ballyhooed Brazilian sumed all of it plus more can’t push through Con- paid over $2 billion in department as it struggles
economy, compounding by borrowing overseas,” gress the fiscal belt-tight- bribes to some politicians to crack down on corrup-
the delicate political situ- said Neil Shearing, the New ening measures it needs to and executives of state- tion. The suspects, mem-
ation for President Dilma York-based chief emerg- create growth,” Shearing run oil company Petrobras bers of the police anti-drug
Rousseff, who polls show is ing markets economist for said. in exchange for inflated units, include a lieutenant
the nation’s most unpopu- Capital Economics. That’s largely why Brazil lost contracts during a period and a sergeant. FBI officials
lar president since the 1985 Not preparing itself for lean its investment-grade status when Rousseff herself was said they expect further ar-
return to democracy. the company’s chairwom- rests in the case, part of an
Rousseff is trying to fight off an. While she faces no for- ongoing series of probes
widespread calls for her mal accusations of wrong- into the troubled depart-
impeachment or resigna- doing, the leader of the ment. “These officers used
tion, which gives her scant lower house already faces their badges and abused
political capital to force corruption charges and their authority,” said U.S.
austerity measures through the head of the Senate is Attorney Rosa Emilia Ro-
Congress to halt across- under investigation, add- driguez. “What appeared
the-board economic hem- ing to legislative gridlock. to be a legitimate police
orrhaging. The scandal has paralyzed operation was nothing else
Brazil’s woes were stoked Petrobras, long the pride but an organized criminal
by the recent years’ col- of Brazilian enterprise and act.” Federal prosecutors
lapse in commodity prices, the company counted on said the suspects, work-
due largely to lessening de- to catapult the nation to ing out of the main police
mand from China’s slowing developed-world status by precinct, divvied up some
economy. Economists also tapping into vast offshore $175,000 in proceeds gen-
blame failure to reform tax- oil reserves discovered in erated from stealing drugs
es and labor markets over recent years, undersea and cash during legal
the past decade of good riches it’s been unable to and illegal raids. In one
times, and the collapse of make good on.q instance, authorities said
some of the suspects re-
2 Haiti Senate seats decided; 18 go to runoffs leased a federal drug-traf-
ficking fugitive in exchange
DAVID McFADDEN are to be decided in runoff Aug. 9 legislative elections won Senate seats in the first for two high-powered rifles.
Associated Press elections Oct. 25, exclud- on its website late Sunday. round. Prosecutors also said they
PORT-AU-PRINCE, Haiti (AP) ing those districts where The site was down for part Latortue, leader of the Haiti are investigating whether
— Two candidates won first-round voting needs to of the day Monday. in Action party, will repre- some people arrested by
election to Haiti’s Senate be redone due to violent Last month’s voting was sent the Artibonite region in the accused officers are
and eight gained seats in incidents and other irregu- marred by disorganization, the Senate, where he has currently in jail as a result of
the lower house in the first larities. Voters will also be intimidation and other ir- held seats previously. He false testimony or planted
round of legislative elec- asked to choose a new regularities in a number of has long been a political evidence.
tions last month, elections president that day, but an- districts, but monitors with powerbroker in Haiti and Police Chief Jose Caldero
authorities announced in other round on Dec. 27 is the Organization of Ameri- is an adviser to outgoing said he will restructure the
the hemisphere’s poorest expected since no candi- can States said it was not President Michel Martelly. department’s 16 anti-nar-
country. date is likely to win an out- enough to invalidate re- Senatus was a high-profile cotics units and require
Eighteen more seats in the right majority. sults. chief prosecutor for Port- those in them to undergo
30-member Senate and After weeks of delay, Haiti’s Veteran lawmaker Youri au-Prince until he was fired polygraph tests, a first for
the remaining 111 spots in Provisional Electoral Coun- Latortue and political new- by Martelly’s administration the island’s police agency.
the Chamber of Deputies cil posted the results of the comer Jean Renel Senatus in 2012.q There are currently 320 of-
ficers in those divisions.q
