Palocci Didn’t Disclose Client Names to Rousseff, Folha Says

Brazilian Cabinet Chief Antonio Palocci said he never disclosed the name of his consulting firm’s former clients to President Dilma Rousseff, Folha de S.Paulo reported, citing an interview.

“I didn’t think it was appropriate to trouble the president with this kind of information,” the newspaper quoted Palocci as saying in the interview. “So far, nobody presented any concrete fact that may suggest any misconduct from my part,” Palocci told Folha.

On May 20, Folha reported Palocci earned 20 million reais ($12.7 million) in consultancy fees in 2010 while also serving in congress and managing Rousseff’s election campaign. The company, Projeto Consultoria Financeira e Economica Ltda, earned 160,000 reais in 2006, its first year of business, Folha said.

In an interview on TV Globo yesterday, he said “not a single cent” of his earnings last year was related to his work managing the campaign.

Rousseff is facing rising pressure from both political opponents and allies to dismiss Palocci, who may face a formal probe from the general prosecutor and be called to testify before lawmakers.

Brazil’s federal prosecutor Jose Rocha Junior will investigate whether Palocci’s consulting fee earnings broke the law. Brazil’s general prosecutor, Roberto Gurgel, responsible for investigating possible criminal conduct by Cabinet ministers, has made two requests to Palocci to explain the jump in his personal wealth. The prosecutor has no deadline for presenting his findings.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

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