29 May, 2017
Brazil's President Michel Temer defiantly refused to step down over allegations that he gave his blessing to payment of hush money for a politician convicted of corruption.
In a nationally televised address, Temer, who ascended to the top job only a year ago after the impeachment of Dilma Rousseff, was defiant. Stocks and the currency plunged and rumors circulated that Temer would step down.
"At no time did I authorize the paying of anyone", Temer said, raising his voice and pounding his index finger against the lectern. But in his statement Thursday, Temer angrily responded: "I never bought anyone's silence".
"I will not resign", he said emphatically.
If Temer resigns or is impeached, House of Representatives Speaker Rodrigo Maia will take over as acting President until the presidential election is called.
But the mood in Brasilia is getting ugly, meaning that even if Temer does somehow survive, his political brand will be damaged. "There are just too many people against him now".
The ongoing scandal deepened at dawn on Thursday as police searched the Rio de Janeiro home and Brasilia office of Senator Aecio Neves, who almost won the presidency in 2014 and planned to run again next year. He has denied any wrongdoing but the Supreme Federal Tribunal has suspended him from office indefinitely.
Neves is being investigated in several corruption cases related to an investigation into kickbacks to politicians.
Within 90 minutes of opening, Brazil's main Ibovespa stock index dropped 10 percent and trading was stopped for 30 minutes.
The U.S. currency on Thursday gained 8.06 percent against the Brazilian real, which posted the highest losses since the country devalued its currency in 1999.
In a fortnight Mr Temer was about to start pushing his economic reform plan through Congress.
Globo newspaper, which first reported the recording Wednesday night, said the men are Temer and Batista. On the tape, which was finally made public Thursday, Batista told Temer that he was paying money every month to Cunha "to keep things under control."Temer replied: "You need to keep doing that, OK?"
President Michel Temer delivers a statement following the release of a recording of him allegedly condoning bribery. Cunha helped initiate the impeachment of Dilma Rousseff, a move which allowed Temer to take over as the president. He was sentenced to 15 years in prison for corruption in March. The recording was turned over to prosecutors as part of a Batista plea bargain. In Sao Paulo, the nation's largest city, hundreds of protesters gathered on a main avenue to demand Temer go. Globo then posted the almost 39-minute recording, which is scratchy and often inaudible. The presidency also didn't immediately respond to queries seeking comment about the latest revelations.
It remained unclear whether Temer's defiance will be enough, with cracks growing in the ruling coalition, which is centered on Temer's PMDB party and the PSDB Social Democrats, along with a coalition of smaller parties. The operation sprawled from an investigation into money laundering, through a petrol station, in connection to building contracts at the state-run energy company Petrobras, and has expanded to ensnare several top businessmen and politicians.
Recent polls suggest that 92 percent of Brazilians want new direct elections, and Temer's approval rating stands at less than 10 percent.
