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
First inauguration of Dilma Rousseff Lula da Silva and his wife. Traditionally, the outgoing vice President and his wife also greet the new President, but José Alencar is undergoing colorectal cancer treatment in São Paulo's Hospital Sírio-Libanês and shall not attend the inauguration. In the parlor (speaker's platform), located in the outer area of the palace, overlooking the Three Powers Plaza, Lula will pass the presidential sash to Rousseff. Wearing the sash, Rousseff will be greeted by heads of state and other authorities in the palace's east wing. Around 17:00 hours UTC−2 (5 p.m.), Rousseff will head to the parlor and make her first speech