Brazilian President Michel Temer has been caught discussing attempts to pay a potential witness to remain silent in the country's biggest-ever graft probe. As Kate King reports it's likely to mean fresh anti-government protests in Brazil.
Brazil's corruption scandal has ensnared some of the countries top leaders, the latest- President Michel Temer. Local media say he's been been secretly recorded giving his blessing for potential witnesses to be paid-off Temer's alleged target was politician Eduardo Cunha, who was jailed in March for corruption, money laundering and tax evasion. SOUNDBITE (English) CCLA, CHIEF INVESTMENT OFFICER, JAMES BEVAN, SAYING: "It's bad news both in terms of the overall loss of confidence in the economy as further problems emerge off the back of Operation Car Wash." That investigation centres around bribes paid in return for political favours and contracts with state-run enterprises like oil firm Petrobras. The recording, made by Brazil's federal police, is likely to bring fresh anger towards what is an unpopular government. Temer's office has denied the accusations, but investors began dumping Brazilian assets in foreign markets soon after the news broke. SOUNDBITE (English) CCLA, CHIEF INVESTMENT OFFICER, JAMES BEVAN, SAYING: "The other problem of course is that the president was committed to reform of pensions and labour arrangements which would have been good for the country and there must now be a reduced probability that these changes are brought through." Brazil's economy is mired in recession and there's been widespread protests against austerity measures. A third of Temer's cabinet is under investigation for alleged corruption, the latest revelations providing yet another headache