Gabriela Guerreiro
Reporter Agência Brasil

Brasília - The president of the Partido Liberal (PL), Valdemar da Costa Neto (PL-SP), resigned his seat in the Chamber of Deputies yesterday after admitting that he received money from the PT that was not declared to the Election Board (Justiça Eleitoral). Costa Neto said the money was used only to pay 2002 campaign debts when the PL joined in an electoral alliance with the PT. He added that he was personally responsible for the irregular reception of the funds and that no other member of his party was involved. He blamed the PT for not giving him the documents necessary for him to declare the money to the Election Board or the IRS (Receita Federal).

Costa Neto denied that the money he received was for a supposed monthly allowance "mensalão" that was paid to members of Congress. Roberto Jefferson (PTB-RJ) has accused Costa Neto of being a "distributor" of the mensalão in the Chamber of Deputies.

Costa Neto said he never had any questions about the origin of the money he received. "We do not treat the activities of political party allies with suspicion, especially after a victorious election campaign," he said. Costa Neto also promised to set things right with the IRS (Receita Federal).

Translator: Allen Bennett