An investigation into corruption at Petrobras, Brazil’s state oil company, is moving closer to President Rousseff after a judge said that Gleisi Hoffmann, her former chief of staff, may have taken bribes.
The inquiry has led to construction companies being accused of inflating contracts with Petrobras and passing part of the profit to politicians in bribes.
At the same time a money launderer already convicted in the multibillion-pound kickback scheme accused Mrs Rousseff and her predecessor, Luiz Inácio Lula da Silva, of knowing of the ruse. He is being investigated for trying to influence business decisions.
Ms Rousseff is hugely unpopular and is struggling with a failing economy, demonstrations and an investigation into whether she falsified accounts before last year’s election to make the economy look healthier than it was.
Her approval ratings have fallen to 8 per cent and many of her attempts to introduce economic reforms have been stymied by former allies in Congress, who themselves are fending off allegations of having taken bribes.
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Adding to her woes, the fall in oil prices and the economic crisis in China, the main importer of Brazilian soy, beef and iron ore, have meant that there is no sign of a recovery.
“This is very bad news for Rousseff, at a time when she is doing everything to diminish the crisis,” Thiago de Aragão, a business consultant, said.