BRAZIL-LULA

APRIL 25 2007 15:20h

Brazil Electoral Court Clears Lula In Scandal

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Brazils highest electoral court has cleared President Luiz Inacio Lula da Silva of any abuse of power in an alleged smear campaign.

Brazil's highest electoral court has cleared President Luiz Inacio Lula da Silva of any abuse of power in an alleged smear campaign against opposition candidates before the presidential election last October.

In a 6-0 vote, the Supreme Electoral Tribunal decided there was insufficient evidence to suggest that Lula was involved in the illegal buying of a dossier which would implicate opposition party candidates in a graft scheme.

The court, in a ruling posted on Tuesday night, also said there was not enough evidence to suggest that Lula's Workers' Party had bankrolled the attempted to buy the dossier.

If the court decision had swung the other way, Lula could have been stripped of power and his party banned.

Shortly before the first round of voting on Oct. 1, federal police nabbed a Workers' Party official with 1.75 million reais ($860,000) that was allegedly intended to buy photos and documents implicating opposition figures, including Sao Paulo governor candidate Jose Serra, in a previous government-related graft scheme.

Serra won the governor's race, and Lula was re-elected president after a run-off. (Reuters)