BRASIL: Dilma's Chief Aide Palocci Resigns Amidst Influence Peddling Charges; Sen. Hoffmann Will Replace Him.

REUTERS

   Shortly after President Dilma Rousseff consulted with former president Lula da Silva, (below) her embattled but politically savvy chief of staff Antonio Palocci (right) suddenly resigned over an influence peddling scandal...the second scandal in his governmental career.

 A first term inexperienced Senator Gleisi Helena Hoffmann, (left) 45, wife of Communications Minister Paulo Bernardo, will replace Palocci.
   The move will head-off embarrassment for the still young Rousseff administration...as it works with a hostile congress.
  “A Lula da Silva man steps down and a Dilma woman moves in”, wrote a columnist... even if Rousseff had an ‘excessive dependency’ on Palocci for most major decisions.

BRASIL: Dilma Defends Staffer Chief Palocci Over Lobbying Charges.

REUTERS/

    After two weeks of media hounding, President Dilma Rousseff is publicly defending her chief of staff Antonio Palocci...for the first time.
   "I want to assure you that Minister Palocci is giving all necessary explanations to audit agencies," Rousseff said.
     Palocci has been pressured to explain an alleged 20-fold increase in wealth as a consultant to businesses from 2007 to 2010...while still in the Congress.
     In 2006, Palocci quit as finance minister...because of a different ethics scandal.

BRASIL: Satellites Show Mato Grosso Deforestation Increased...6-Fold; Dilma's Chief Of Staff Palocci Slammed For...20-Fold Increase...In Wealth.

BBC/

    Brasil's own space institute reports that satellite images show deforestation increased...from 103 sq km in March and April 2010...to 593 sq km.
    Most of the destruction took place in soya growing Mato Grosso state.
    Environment Minister Izabella Teixeira called the report "alarming" and will set-up a "crisis cabinet."

AND: the WSJ's P. Prado reports that President Dilma Rousseff's 5-month honeymoon may be over.

    Her trusted chief of staff Antonio Palocci, 52 (above) is under fire after a report in FOLHA de S.PAULO that his net worth...increased 20-fold...in just 4 years.
http://online.wsj.com/article/SB10001424052748704083904576333661046913114.html

BRASIL: 09 Dec. UPDATE: President -Elect Dilma Rousseff Interviewed; PBR's Gabrielli Reappointed; Palocci Chief Of Staff; 5 Coalition Members Get Cabinet Posts.

SLATE/ LALLY WEYMOUTH/
  Appointment news from President-elect Dilma Rousseff (pictured) is coming fast and furious.
    But first, a link to a recent interview that ran in the Washington Post... with questions like : "...Why is Brazil supporting a country that allows people to be stoned, that jails journalists?" AND "You have said publicly that you would like to see interest rates come down. Will you cut the budget or reduce the yearly increase in government spending?"

09 DECEMBER UPDATE: Rousseff has nominated 5 members from the centrist PMDB party, her biggest ally in the 10-party coalition, to cabinet positions.
FOR DETAILS, SEE:
http://en.mercopress.com/2010/12/09/brazil-s-main-coalition-partner-given-five-ministries-in-rousseff-s-cabinet
 FOR Gabrielli Re-appointment, SEE:
 http://www.bloomberg.com/news/2010-12-07/rousseff-said-to-reappoint-gabrielli-as-brazil-s-petrobras-chief.html
FOR Antonio Palocci appointment, SEE:
    The markets like Antonio Palocci and his market-friendly policies. He is a doctor who was Finance Minister from 2003 to 2006 during President Lula da Silva's   first term. He allowed loan payments to be deducted from paychecks that fueled a record expansion of credit among low-income families.Under his watch, inflation slowed to 5.3 percent from 17.2 percent.

 http://www.bloomberg.com/news/2010-11-25/rousseff-said-to-name-palocci-to-post-at-presidency-update1-.html

BRASIL: Profile Of Antonio Palocci, Rousseff's Economic Advisor.

BLOOMBERG/    Antonio Palocci, resigned in 2006 as finance minister before the Supreme Court belatedly exonerated him of violating bank secrecy laws. But Palocci, 49, a congressman from Sao Paulo state is the chief economic adviser to President Lula's handpicked successor Dilma Rousseff, who polls say has gained a comfortable lead for the October presidential election. Wall Street also likes him, including the bond giant PIMCO. “What Palocci did as finance minister set Brasil on the right course,” Thomas Trebat, a former Citigroup Inc. analyst. “Brasil needs him again.”