Priscilla Mazenotti
Reporter Agência Brasil

Brasília - Minister of Finance, Antonio Palocci, held a press conference over the weekend to explain that a controversial contract for garbage collection was made before he became mayor of Ribeirão Preto. Palocci has been accused by a former aide of receiving payments from the Leão & Leão company, which had a contract to collect garbage in Ribeirão Preto, a city in the state of São Paulo where Palocci was mayor (2000-2002).

Palocci explained that according to the accusation, companies that won city contracts paid kickbacks to local authorities. "I think it is very relevant to note that the money, according to the accusation, was paid by companies when they won contracts. Well, these contracts were signed before I became mayor," said the minister.

Palocci said he was not criticized former governments. "All I am saying is that I did not sign the contracts."

However, Palocci did admit a no-bid contract worth US$57,140 (R$140,000) while he was mayor. "We had heavy rains in the city and had to clear streets of fallen trees. We just did not have time to go through a competitive bidding process. It was an emergency," he explained.

Translator: Allen Bennett