BRAZIL: Luiz Inacio Lula da Silva yesterday seemed to have lost his chance to win a second term in next year's Brazilian general election, as a three-month corruption scandal took its toll on his popularity.
Mr Lula da Silva would win less support than Jose Serra, mayor of Sao Paulo and his 2002 rival, according to Ibope polling company. In a run-off between the two, the social democrat would beat Mr Lula da Silva with 44 per cent against 35 per cent.
For the first time since taking office in January 2003, a majority of Brazilians - 47 per cent against 45 per cent - do not approve of the former union leader. Last month he still had the backing of 55 per cent of those polled.
"I'm not sure the president today is in a position to re-elect himself," Tarso Genro, president of the governing Workers' Party (PT), told local media this week.
He said the president's re-election attempt was uncertain because "I don't know what may crop up in this crisis".
The poll comes after weeks of unrelenting accusations that the Workers' Party raised funds illegally to finance election campaigns and obtain support in congress. Its former treasurer admitted to illegal campaign funds, but denied vote-buying.
Fresh evidence emerged this week, bringing the crisis closer to the presidential palace.
Valdermar Costa Neto, head of the Liberal Party (PL), told a congressional inquiry he received R$6.5 million (€2.2 million) off the books from the PT to finance the campaign of Mr Lula da Silva and his vice-presidential running mate, Jose Alencar of the PL.
Mr Lula da Silva's 2002 campaign chief said earlier this month he was paid with illegal funds, in cash and via off-shore accounts.
Opposition leaders and public prosecutors suspect these funds are the result of corruption in public enterprises, as well as kickbacks in municipalities run by the PT.