1 00:00:00,040 --> 00:00:02,880 Speaker 1: Imagine a former president of a country found guilty of 2 00:00:02,920 --> 00:00:05,840 Speaker 1: corruption and money laundering, who remains one of the most 3 00:00:05,840 --> 00:00:08,959 Speaker 1: popular presidents in its history and as a strong contender 4 00:00:08,960 --> 00:00:12,360 Speaker 1: in the next presidential race, and the country's current president 5 00:00:12,400 --> 00:00:15,880 Speaker 1: has also been charged with corruption. It sounds like fiction, 6 00:00:16,040 --> 00:00:19,439 Speaker 1: but it's fact. The country is Brazil and its former president, 7 00:00:19,560 --> 00:00:22,680 Speaker 1: Luis and Nascio Lula da Silva, was found guilty in 8 00:00:22,680 --> 00:00:25,720 Speaker 1: the corruption probe known as car Wash and sentenced to 9 00:00:25,840 --> 00:00:28,440 Speaker 1: nine and a half years in prison. During a speech 10 00:00:28,440 --> 00:00:32,280 Speaker 1: in Salpolo yesterday, Lula blamed the media and prosecutors for 11 00:00:32,320 --> 00:00:35,559 Speaker 1: plotting against him and vowed to appeal. Joining us from 12 00:00:35,560 --> 00:00:38,519 Speaker 1: the Bloomberg News Brazilia office is Raymond call it the 13 00:00:38,560 --> 00:00:42,440 Speaker 1: bureau chief. Ray tell us about the charges Lula was 14 00:00:42,520 --> 00:00:48,479 Speaker 1: convicted of. Yes, him, Essentially, he's being accused of having 15 00:00:48,880 --> 00:00:52,760 Speaker 1: taken bribes from construction companies, not in the form of cash, 16 00:00:52,800 --> 00:00:55,320 Speaker 1: but in the form of benefits. We're talking about real 17 00:00:55,480 --> 00:01:00,800 Speaker 1: estate to each side house and improvements up grades to 18 00:01:00,800 --> 00:01:03,400 Speaker 1: to that house. As he said, I mean, it's just huge. 19 00:01:03,440 --> 00:01:06,479 Speaker 1: It's a huge story that it's turned the country upside down. 20 00:01:06,520 --> 00:01:09,720 Speaker 1: This was a man who Barack Obama called the most 21 00:01:09,800 --> 00:01:14,800 Speaker 1: popular politician on earth, and here he is facing perhaps 22 00:01:14,640 --> 00:01:17,240 Speaker 1: as much as a decade in prison. He will, of 23 00:01:17,280 --> 00:01:20,560 Speaker 1: course still still appeal. Well, when he does appeal, he's 24 00:01:20,600 --> 00:01:24,959 Speaker 1: going to claim that his defense wasn't appropriately considered. Vote. 25 00:01:24,959 --> 00:01:29,480 Speaker 1: What's his defense to this, Well, it's basically on technical 26 00:01:29,520 --> 00:01:32,199 Speaker 1: grounds and some of the evidence that they've provided hasn't 27 00:01:32,280 --> 00:01:37,680 Speaker 1: been properly considered. Um, this is but but he's also 28 00:01:37,720 --> 00:01:40,760 Speaker 1: at the same time, he's it's a two pronged approach. 29 00:01:40,800 --> 00:01:42,679 Speaker 1: At the same time, he's claiming that this is some 30 00:01:42,760 --> 00:01:46,400 Speaker 1: sort of political persecution, that the reason that he's being 31 00:01:46,720 --> 00:01:51,120 Speaker 1: charged and sentenced is because he's, you know, still leading 32 00:01:51,160 --> 00:01:53,320 Speaker 1: in the polls. He could come back. He often used 33 00:01:53,800 --> 00:01:55,800 Speaker 1: uses this this idea that you know, he was the 34 00:01:55,840 --> 00:02:00,960 Speaker 1: first working class president and Brazil's establishment, the elite doesn't want, um, 35 00:02:01,000 --> 00:02:04,800 Speaker 1: you know, another another labor leader in office. Again. Um, 36 00:02:04,880 --> 00:02:08,080 Speaker 1: that has been his line, judging by sort of the 37 00:02:08,080 --> 00:02:10,080 Speaker 1: turnout in the streets the last couple of days, and 38 00:02:10,120 --> 00:02:12,720 Speaker 1: not too many people are buying that line. H. We 39 00:02:12,840 --> 00:02:15,760 Speaker 1: stuff to see their demonstrations planned for for the twenty 40 00:02:15,919 --> 00:02:18,880 Speaker 1: of this month, But so far, um, you know, the 41 00:02:18,919 --> 00:02:23,520 Speaker 1: hardcore little supporters aren't aren't to be seen. Ray. He 42 00:02:23,560 --> 00:02:26,440 Speaker 1: can't run if he's if his conviction is upheld, But 43 00:02:26,639 --> 00:02:31,000 Speaker 1: can he run while he's awaiting appeal. That's an excellent question, 44 00:02:31,000 --> 00:02:34,000 Speaker 1: and there's some some technicalities there that that we need. 45 00:02:34,720 --> 00:02:37,720 Speaker 1: According to the law, he needs to be convicted in 46 00:02:37,760 --> 00:02:40,720 Speaker 1: a second by the appeals court. In other words, it 47 00:02:40,800 --> 00:02:44,680 Speaker 1: needs that this ruling needs to be upheld. Now he 48 00:02:44,720 --> 00:02:48,280 Speaker 1: could until then he runs. What what happens if if 49 00:02:48,320 --> 00:02:51,880 Speaker 1: he if he is barred during the process. There's all 50 00:02:51,919 --> 00:02:55,720 Speaker 1: sorts of potential legal loopholes here in gray areas that 51 00:02:55,760 --> 00:02:58,720 Speaker 1: aren't entirely clear. Um. The only thing we know so 52 00:02:58,760 --> 00:03:01,440 Speaker 1: far is that if the ruling is upheld, he definitely 53 00:03:01,480 --> 00:03:05,880 Speaker 1: can't run well. And the current Prime Minister is also 54 00:03:06,560 --> 00:03:09,880 Speaker 1: facing the prospect of corruption charges, isn't that right? The 55 00:03:09,880 --> 00:03:13,520 Speaker 1: current president, yes, Michelle Tamer is also is also facing 56 00:03:13,520 --> 00:03:17,720 Speaker 1: the charges that there's Now the difference here is um 57 00:03:18,480 --> 00:03:22,920 Speaker 1: that that his child depends on approval by by Congress. 58 00:03:22,919 --> 00:03:25,959 Speaker 1: So it's not actually judges who decide the fate of 59 00:03:26,040 --> 00:03:29,320 Speaker 1: Michelle Tamer the current president, but politicians where he still 60 00:03:29,360 --> 00:03:32,160 Speaker 1: has a majority. So that's one if you would like 61 00:03:32,800 --> 00:03:35,120 Speaker 1: to say one of the flaws of the system. Um 62 00:03:35,680 --> 00:03:38,960 Speaker 1: that if you have enough political support, you may not 63 00:03:39,240 --> 00:03:43,320 Speaker 1: have to face justice. Ray, As you mentioned, Lula is 64 00:03:43,360 --> 00:03:46,640 Speaker 1: an iconic political figure in Brazil and he had a 65 00:03:46,720 --> 00:03:50,280 Speaker 1: lot of support. Why and it seemed to be support 66 00:03:50,360 --> 00:03:53,560 Speaker 1: even during the case. Why do you think that the 67 00:03:53,920 --> 00:03:58,400 Speaker 1: verdict by a judge, not by a jury changed so 68 00:03:58,520 --> 00:04:00,920 Speaker 1: many of his supporters of means that they're not out 69 00:04:00,960 --> 00:04:04,320 Speaker 1: there supporting him. Now, Well, look, I mean there a 70 00:04:04,320 --> 00:04:06,920 Speaker 1: couple of theories about this, and and one goes as 71 00:04:06,960 --> 00:04:11,680 Speaker 1: such that while things are doing well, um, politicians are 72 00:04:11,960 --> 00:04:14,160 Speaker 1: can get away with more. In other words, during the 73 00:04:14,200 --> 00:04:18,480 Speaker 1: past decades of this huge commodity boom, Lula was you know, 74 00:04:18,720 --> 00:04:22,640 Speaker 1: was credited with putting Brazil on the world map. Um, 75 00:04:22,680 --> 00:04:25,640 Speaker 1: you know, it hosted the World the World Cup, the Olympics. 76 00:04:26,000 --> 00:04:29,000 Speaker 1: Things were going well. And of course when things are 77 00:04:29,040 --> 00:04:31,160 Speaker 1: going well, you don't, you know, take a second look 78 00:04:31,160 --> 00:04:33,920 Speaker 1: at where all the money is coming from. And now 79 00:04:34,000 --> 00:04:37,640 Speaker 1: that Brazil is in its deepest recession on record, of course, 80 00:04:37,800 --> 00:04:41,840 Speaker 1: you know, leaders have lost popularity and there are prosecutors 81 00:04:41,920 --> 00:04:44,640 Speaker 1: out there willing to take a second look, um, and 82 00:04:44,760 --> 00:04:46,920 Speaker 1: well this is what they found. At least that's that's 83 00:04:46,960 --> 00:04:49,760 Speaker 1: one of the theories. That's that's going around right in 84 00:04:49,800 --> 00:04:53,120 Speaker 1: about thirty seconds. You know, this is a huge corruption 85 00:04:53,640 --> 00:04:57,840 Speaker 1: investigation and and it's encompassing a lot of people. Can 86 00:04:57,960 --> 00:05:00,279 Speaker 1: Brazil dig out of this and get to a point 87 00:05:00,279 --> 00:05:03,680 Speaker 1: where it's politics aren't so corrupt? Look that that's another 88 00:05:03,720 --> 00:05:06,159 Speaker 1: We debate this every day here. We hear people debated 89 00:05:06,200 --> 00:05:09,520 Speaker 1: and the elevators in the hallways. Uh, they're mixed feelings. 90 00:05:09,560 --> 00:05:11,920 Speaker 1: Some people are dismayed, say, oh god, you know, there's 91 00:05:11,920 --> 00:05:14,480 Speaker 1: just corruption everywhere. Everybody's corrupting. Other people are saying, you 92 00:05:14,520 --> 00:05:17,640 Speaker 1: know what, we're finally making progress because corruption was always around. 93 00:05:17,920 --> 00:05:20,400 Speaker 1: Now people are starting to judges are starting to clean 94 00:05:20,440 --> 00:05:22,520 Speaker 1: things up, and there's light at the end of the tunnel. 95 00:05:23,080 --> 00:05:26,000 Speaker 1: Thanks so much for being with us. That's Raymond College. 96 00:05:26,000 --> 00:05:29,280 Speaker 1: He is the bureau chief of the Bloomberg News Brazilia office, 97 00:05:29,279 --> 00:05:33,760 Speaker 1: and he's reporting on the conviction of this former president 98 00:05:33,839 --> 00:05:35,760 Speaker 1: Luis in Nascio Lula da Silva