Mensalão scandal funneled through an advertising agency owned by Marcos Valério. The investigation has since uncovered members of the Brazilian Social Democracy Party, DEM, Brazilian Democratic Movement Party and seven other political parties also involved. Many key advisers to Lula resigned, and several deputies were faced with the choice of resignation or expulsion from congress, though the president himself went on to be re-elected in 2006, and in 2010 Brazil elected his chief of staff, Dilma Rousseff, as president. Much of PT's leadership was affected in some way, with many resigning or failing to win re-election. Brazil's economy was widely perceived as
2010 Brazilian presidential election with a limit of two consecutive terms. Lula was thus not eligible to stand again as he has already served two terms after winning the elections in 2002 and being re-elected in 2006. This was the first time since the inaugural presidential election after the military dictatorship that he did not run for president. The candidates of the two major political groups of the country were Lula's former Chief of Staff, Dilma Rousseff, of the ruling centre-left democratic socialist/social democratic Workers' Party (PT), and São Paulo State former governor, José Serra, from the centre-right opposition coalition formed mainly by the