Brazil's Rousseff faces political turmoil

A new corruption scandal and a top minister's remark that he is surrounded by "idiots" have further strained President Dilma Rousseff's ruling coalition and cast more doubts on her frozen legislative agenda.

Rousseff was due to meet today with Transport Minister Alfredo Nascimento after she decided over the weekend to suspend two of his top aides. Local news magazine Veja alleged that the two were charging a 5 percent kickback fee on projects coming through the ministry.

A statement issued by Rousseff's office said she "has confidence" in Nascimento and that he was responsible for investigating the problems at the ministry.

The allegations and Rousseff's role in the suspensions could cause more friction within the 10 parties that she relies on to pass legislation. Nascimento's Party of the Republic is small, but Rousseff's relations with bigger parties such as the PMDB have frayed due to disputes over budget cuts and appointments to plum government jobs.

The sour mood in Brasilia, highlighted by the resignation of Rousseff's chief of staff last month amid a separate scandal, has paralyzed key reforms such as an overhaul of the tax code and efforts to prepare Brazil to host the 2014 World Cup.

Adding to the feeling of drift and dissension in Rousseff's six-month-old government, Defense Minister Nelson Jobim lamented before a roomful of legislators last week that he has to tolerate an ever-greater number of "idiots." Jobim, a PMDB leader, made the comments at an 80th birthday celebration for former President Fernando Henrique Cardoso – a figurehead of the main opposition party. Jobim served as Cardoso's justice minister in the 1990s.

Jobim also lauded Cardoso for "never raising his voice toward anyone" and "never creating tension among his advisers” which many observers interpreted as a direct criticism of Rousseff, who has a reputation for dressing down subordinates in a loud and public fashion.

After a long meeting with Rousseff on Friday, Jobim said his comments were misinterpreted, and that the "idiots" were journalists who disparaged Cardoso's legacy.