Brazil Chief Of Staff Guerra Quits Amid Scandal Allegations

BRASILIA (Dow Jones)--Erenice Guerra, the Brazilian president's chief of staff, quit her post Thursday following the emergence of allegations earlier in the week that members of her family participated in an influence-peddling scheme involving government contracts.

According to presidential spokesman Marcelo Baumbach, Guerra will be replaced by presidential aide Carlos Eduardo Esteves Lima.

Guerra is the second chief of staff of the current administration to step down from the post under fire for alleged links to corruption.

Jose Dirceu, former chief of staff, resigned from the post in 2005 following allegations he helped coordinate a kickback and irregular campaign-funding scheme with members of the country's Congress.

Dirceu was replaced by Dilma Rousseff, the hand-appointed candidate of Brazilian President Luiz Inacio Lula da Silva as his successor to the presidency in elections scheduled for Oct. 3.

-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832; gerald.jeffris@dowjones.com

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