Nov. 25 (Bloomberg) -- A Brazilian congressional committee has ``clear'' proof the governing Workers' Party bribed lawmakers to help pass legislation, and it plans to seek the indictment of former government officials, the legislator leading the investigation said.

The 32-member committee, which is probing 1 billion reais ($450 million) of government contracts, will vote on a report Dec. 1 to recommend prosecutors seek the indictment of former state company directors, as well as other officials, said Senator Delcidio Amaral.

``It's absolutely clear that illegal operations with public money existed,'' Amaral, the head of the six-month investigation and a member of the Workers' Party, said in an interview from his office in Brasilia.

President Luiz Inacio Lula da Silva said in an interview earlier this month on TV Cultura that his party never paid bribes to legislators to win support in congress. He said allegations the party made monthly payments to lawmakers ``smells like folklore within the national congress.''

Yesterday, in an interview with several Brazilian radio stations, Lula said the allegations of monthly payments ``turned into a Carnival song'' that was never proven.

``Even if the operations weren't monthly, we're sure of cash distribution resulting from changes of parties, campaign financing or important projects in the government,'' Amaral said.

The report to be voted on next week also will show that ad executive Marcos Valerio de Souza used public and private money to guarantee loans to finance the Workers' Party, Amaral said.

Claudia Leal, Valerio's spokeswoman, denied in an interview from Belo Horizonte, Brazil that Valerio used public and private funds to guarantee loans for the party. In congressional testimony Aug. 9, Valerio also denied allegations he lent money to Lula and his cabinet members.

To contact the reporter on this story: Katia Cortes in Brasilia at kcortes@bloomberg.net

Last Updated: November 25, 2005 13:32 EST