The weekly news magazine “Veja” last Sunday reported a serious accusation against the left-leaning Workers Party (PT) administration. The magazine’s front page, with a red background, reproduced a $100 bill with a portrait of Fidel Castro and carried the headline, “Dollars from Cuba for Lula campaign,” referring to President Luiz Incio Lula da Silva. Before the magazine circulated, rumors swept through newsrooms with the expectation that it would be a bombshell capable of damaging the Lula administration in a definitive way.

On Sunday, newspapers repeated the accusations, but with different emphases. “O Estado de So Paulo” was the only one of the big newspapers which made the topic a headline item: “Revelation about Cuban financing aggravates crisis.” Folha was cautious. The topic was not the main one on its front page, and it gave priority to defending the administration: “2002 campaign got no Cuban money, PT says.”

A history of the repercussions of this story is interesting because it reexamines the strength it attributed to the press in this crisis provoked by accusations of corruption in the government. It is a good case for quick reflection about journalistic work.

On Monday, Folha treated the matter seriously without making it the main topic. On Tuesday, it published the editorial “Open confrontation” in which is positioned itself regarding the matter: “It is inevitable, therefore, to receive negative news that follows publication of the mentioned story. The topic needs to be investigated and, in case the facts are proved true, PT’s ability to function a political party would be threatened.”

But on that same day, columnist Clvis Rossi was blistering in knocking down the accusations: “The most basic common feeling and a little bit of basic information were enough to render the public version by … “Veja” … completely implausible.”

On Tuesday, Folha had its first headline on the topic, in the same cautious line that it has been conducting the news: “Opposition adopts caution regarding Cuban case.”

The next day, columnist Lus Nassif showed skepticism similar to that of Rossi: “If Cuba contributed to Lula’s campaign, certainly it was not in a discreet way.”

Coverage by the main newspapers had as its main characteristic, through Friday, emphasis on the repercussion of the accusations. Repercussion is synonymous with statements, in other words, many quotes and little reporting. Folha still made an effort to seek its own information and sought the main people involved. But it did not obtain any data that advanced the story in “Veja.” And “Estado,” which on Sunday made the topic its lead story, did not have even one line about the case on Friday.

One piece of evidence of the lack of willingness to investigate: on Thursday, one reader called the ombudsman to say that the Cuban diplomat involved in the case, Srgio Cervantes, would not be in Brazil all week, including participation in public activities in Congress and the Brazilian Communist Party and, even when traveling on that day had not been sought by any newspaper to comment on the story.

There is no doubt about the explosive potential of the cover of “Veja.” Since May, stories with less nitroglycerine had devastating effects. What is intriguing is why, now, the accusations were received so cautiously and the repercussion was less, including by the opposition.

I have three hypotheses that could help explain the phenomenon.

1 – The holes in stories.

As the magazine itself admitted, there are various obscure points in the story. It is possible that the edition that circulates today will carry new information. But, as already came out, the story ended up provoking a discussion that reaches more into the area of faith than journalism: do you believe or not that Cuba sent money? The investigation, therefore, needs to continue. And, through Friday, newspapers do not contribute to clarify the case.

2 – Exhaustion of people.

The story in “Veja” involves serious accusations without definitive proof, requiring an investigation. Since May there were dozens of cases, and the majority still await a conclusion. There are six months of intensive daily coverage. There comes a time when it is difficult to distinguish the relevance of facts.

3 – Finance Minister Antonio Palocci’s armor.

At this level, there is no longer any doubt that any accusation which involves the minister, even if it refers to his first term as mayor of Ribero Preto (So Paulo state), received distinct treatment from the press. As occurred in the case of the money from Cuba, which damages his former assistants, in another story, also in “Veja,” about publicist Marcos Valrio’s influence in the ministry.

A feeling persists that there is an agreement between those who govern and their opponents to manage the crisis. An inside headline in Folha on Tuesday is symptomatic: “PT senators don’t want to remove (Eduardo) Azeredo,” the Brazilian Social Democracy Party (PSDB) senator in Minas Gerais whose electoral campaign also benefitted from the Valrio funding machine.

Last week the congressional investigation into the postal service scandal announced that it had proof that the loans Valrio made to the PT did not exist and at least one part of the resources used by the party came from a contract one of the publicist’s companies had with Banco do Brasil. It is possible that proof has began to appear, putting coverage on more solid ground.

The same company

In January, Folha announced creation of the Folha-UOL “holding,” a business reorganization of the Folha Group. With this, Portugal Telecom, UOL’s partner, also became a partner of Folha and, according to the newspaper, the group became the second-biggest media conglomerate in Brazil.

On that occasion, the president of the group, Lus Frias, said the formation of the new company foresaw the opening of capital in the near future. I reproduce the statement that he made at the time to Folha: “We are working to present the best opportunity to the market: the second-biggest company in the sector in size, a leader in what it does, with its debt liquidated by the end of 2005 and a professionalized company.”

On Oct. 25, the daily newspaper “Valor Econmico,” a partnership between the Folha Group and Globo Organizations, said UOL is prepared to launch the sale of stock with an initial offer of up to US $200 million in stock.

At the end of the story, the newspaper revealed that the business restructuring announced in January to group all of their media holdings had been undone. According to the newspaper, months after the January announcement, “there was a change in plans and the holding was separated” and “the UOL web portal returned, that way, to a separate business.”

I believed that it was strange that Folha itself did not announce an end to the “holding” nor tell about the launch of UOL stock. I sought leaders at the newspaper, but I did not get an official statement. I managed to find out that the change had occurred because the group realized it would be easier to sell the shares in the stock market with the launch of UOL stock. Concerning the expectations of January, the objective to liquidate the debt was not achieved, although it has decreased. And Portugal Telecom is no longer a partner of the newspaper.

Folha behaved incorrectly by omitting this information from its readers. They have the right to be informed about the economic interests of the company that publishes the newspaper they choose.

Translation by John Wright

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