|The emergence of a video tape and an accompanying transcript showing Waldomiro Diniz former head of the Brazilian State Lottery, agreeing to rewrite an online lottery contract so as to favour a numbers game kingpin known as 'Charlie Waterfall', has thrown the Brazilian leadership into turmoil this week.|
Diniz, who it appears was soliciting campaign contributions for two of the party’s candidates, was fired hours after the two-year-old tape surfaced. However, the reputation of the left-wing government, which, since its election in 2002, has prided itself on fighting corruption, is left in tatters.
President Da Silva has tried to distance himself and his party from the debacle; however, opposition leaders have called for a congressional investigation and demanding the immediate resignation of Jose Dirceu de Oliveira e Silva, the president's chief of staff and the immediate superior of Diniz.
Writing in the daily Folha de Sao Paulo, columnist Eliane Cantanhede said, “You can say that he (Diniz) is the right-hand man of the right-hand man of the President of The Republic… The damage has been done, and done thoroughly. The government is reeling, even before the eve of Carnival.'