Brazil former minister indicted

Antonio Palocci says he is innocent

Brazil's ex-Finance Minister Antonio Palocci has been charged with illegally accessing the bank account of a man who testified against him in March.

Caretaker Francenildo Santos Costa told an inquiry he had seen Mr Palocci at a house where politicians allegedly divided bribes and held wild parties.

Mr Palocci - who resigned last month in the wake of corruption allegations - denies any wrongdoing.

The case comes as Brazil prepares for a presidential election in October.

Lula cleared

Mr Palocci has told federal police he had received Mr Costa's bank records on 16 March, and destroyed them the following day without telling anybody about them, his lawyer says.

A close adviser to President Luiz Inacio Lula da Silva, Mr Palocci has been described as one of the architects of Brazil's economic recovery.

Correspondents say any proof of his involvement could be a blow to Lula's government as it heads towards the elections.

Last week, a parliamentary inquiry reported that it had uncovered evidence that the ruling Workers' Party had made illegal cash payments to lawmakers from other parties that joined its coalition.

The inquiry cleared President Lula - who is widely expected to run for re-election - of any criminal wrongdoing.