Brasília, 2/26/2004 (Agência Brasil - ABr) - The country's Chief Prosecutor (procurador-geral da República), Cláudio Fonteles, says that in his opinion the federal government does have the jurisdiction to legislate on gambling. As a result, says Fonteles, state laws permitting bingos and electronic slot machines are unconstitutional and the Temporary Measure (medida provisorio 168) emitted by president Luiz Inacio Lula da Silva last week supersedes all state laws and court orders permitting gambling. Fonteles declared that a final decision on the matter would have to come from the Supreme Court.

With regard to the contracts for the operation of federal lotteries which the Federal Loan and Mortgage Bank (Caixa Economico Federal) signed with the multinational firm, GTech, Fonteles declared that there was an investigation underway in the state of Rio de Janeiro, but that he personally was not aware of any irregularities in the contracts. (AB)