Spotlight: Lula's interrogation in Brazilian graft probe puts Rousseff's position in jeopardy

Former Brazilian President Luiz Inacio Lula da Silva was briefly detained for questioning on Friday as part of an investigation into a corruption case involving the state-owned oil company Petrobras.

The drama sent shockwaves through Brazil's already turbulent political landscape, putting the future of the ruling Workers' Party and his successor, President Dilma Rousseff, in jeopardy.

The interrogation of Lula came a day after Workers' Party Senator Delcidio do Amaral, who was arrested last November, was reportedly negotiating a plea bargain deal with prosecutors, in which he allegedly tied the president and Lula to the corruption scandal.

Delcidio do Amaral was a major legislative ally for Rousseff before he was arrested.

Police officers also detained Lula's wife and children while searching his residence in Sao Paulo, and the Lula Institute, an organization founded after the former president left office. They also searched a ranch and an apartment which investigators said belong to Lula. The former president, however, denied his ownership of the property.

Federal prosecutors announced, after Lula's release, that there is no evidence to charge him with a crime so far. However, the investigators also obtained permission to remove bank secrecy from Lula's accounts for the last five years. The accounts will now be scrutinized to spot any suspicious transactions.

The former president, who remained a towering figure, said on Friday morning that he had felt like a prisoner during his three-hour interrogation at Congonhas airport in Sao Paulo.

"I have been through a lot in my life. I am not the type of man to bear a grudge but our country can continue like this," said a defiant Lula.

He accused Sergio Moro, the judge who leads Operation Car Wash, the investigation into the Petrobras corruption ring, of "arrogance" in sending an order for Lula to be detained.

The former president told the press that he had previously voluntarily testified to investigators and that he would have been happy to appear again at their request.

President Dilma Rousseff expressed her disagreement with the decision to detain and interrogate Lula.

"I want to express my complete dissatisfaction with the fact that a former president, who regularly volunteered information to the authorities, has now been subject to a unnecessary detention to be interrogated," she said.

Rousseff stressed that the investigation "must be done in a democratic and republican manner, by respecting the Constitution, and under the supervision of the Supreme Court, which are important safeguards."

Reactions to the news have been divided, as expected. Other left-wing governments in Latin America, such as Venezuela and Bolivia, have denounced the move.

Venezuelan President Nicolas Maduro described it as "a miserable attack" from which Lula would "come out stronger." Bolivian President Evo Morales said he had sent "a revolutionary salute to our comrade Lula" whom he urged to "never surrender."

Argentina, however, focused more on the potential consequences of the case. "When Brazil sneezes, we get pneumonia," said Argentine Foreign Minister Susana Malcorra, adding that the levels of connectivity between the countries meant an economic crisis in one would spread to the other.

Malcorra's comment came as Brazil could ill-afford another blow at present. Public and investor confidence in the country has been severely undermined by the corruption scandal, Rousseff's impeachment process and the Zika epidemic.

On Friday, one of the country's main business associations, the Federation of Industries of the State of Sao Paulo (Fiesp), went a step further by calling for Rousseff's resignation.

"We have followed with great worry what has happened today. Last year, our economy fell by almost 4 percent with unemployment on the rise. This government has a complete lack of credibility," Fiesp President Paulo Skaf said in a radio interview.

Such direct calls for Rousseff to step down may grow. The close links between Rousseff and her political mentor, Lula, mean that, if he is finally convicted of a crime, her own political position will never have been more uncertain. Endi