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UPDATE 1-Brazil Senate head steps down for now amid probe

Thu Oct 11, 2007 7:04pm EDT

(Adds details and background)

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BRASILIA, Oct 11 (Reuters) - Brazil's Senate chief, Renan Calheiros, said on Thursday he was stepping down temporarily to battle corruption allegations leveled against him.

"Tonight I decided to step down for a period of 45 days," Calheiros said in a televised address.

He said he would prove he was innocent of all accusations against him.

Calheiros, until recently one of the most influential politicians in Brazil, had held on to power despite months of intense media scrutiny.

His fortunes changed when the government distanced itself from him earlier this week, concerned that disagreement with the opposition over the scandal could hold up an important tax bill.

Calheiros is the latest ally of President Luiz Inacio Lula da Silva to step aside in corruption-related scandals since he took office in January 2003.

The Senate head belongs to the centrist Brazilian Democratic Movement Party, or PMDB, the largest party in Lula's 11-party coalition.

Calheiros was absolved last month in a 40-to-35 Senate vote of accusations he had personal expenses paid by a construction firm. He still faces three more accusations of fraud, influence-peddling and embezzlement in the Senate's ethics committee.

"I will face the charges with dignity and no evasion," he said.

Lula has for the past three years been dogged by a series of corruption scandals involving prominent allies.

His energy minister resigned in May over accusations he took a kickback for a government contract and 40 former government allies are on trial, accused of running an illicit fundraising scheme to finance election campaigns and bribe lawmaker.



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