Brazil’s Collor May Get 4 More Days in Office : Politics: Senate offers grace period, reportedly to accommodate both the impeached president and his replacement.

BRASILIA, Brazil — President Fernando Collor de Mello, impeached by an overwhelming vote in Congress, may get to stay in office four more days before he is officially suspended for a trial by the Senate on charges of corruption.

Collor’s suspension had been expected today but was postponed by Senate Chairman Mauro Benevides--reportedly to accommodate both Collor and Vice President Itamar Franco, who will assume the presidency.

Franco was having trouble Wednesday reaching an agreement with political parties on the selection of an economy minister. And Collor wanted more time before stepping aside.

Benevides appointed a Senate committee to study the articles of impeachment Wednesday, and the committee quickly approved them. But then Benevides announced that he expected procedural formalities to delay the presidential changeover until Monday.

Late Wednesday, Collor’s justice minister began direct negotiations with Franco about the possibility of making the change before Monday, the Globo television network reported.

Tuesday night, the lower house of Congress impeached Collor in a 441-38 vote. A congressional investigative committee had produced what it said was solid evidence that the president’s household received millions of dollars from graft and bribes raked in by his former campaign treasurer.

Wednesday, Collor’s spokesman said the president was bitter about the impeachment, which he called a “lawless lynching,” but he promised a “totally democratic, very civilized” transition. Spokesman Etevaldo Dias added that Collor will be “collaborating with the legislative and judicial powers, and collaborating a great deal with Vice President Itamar so that there will be no anxiety, no unrest in the society.”

Franco, a former senator elected vice president on Collor’s ticket in 1989, consulted Wednesday with politicians from several parties on possible Cabinet appointments. He also sought to enlist the parties’ support in Congress. That isn’t easy.

Ranging from right to left, the parties have conflicting ideas on how to solve the country’s severe economic problems, which include inflation of 25% a month. And the parties have different preferences for Cabinet appointments. The main one they were unable to agree on was the economy minister, a key post because of Brazil’s serious inflation and recession.

Another obstacle to unity among the parties is that they will be competing in 1994 presidential elections and are reluctant to identify themselves too closely with the interim administration.

Franco, 61, has a lackluster image and no party of his own. Analysts say he has little chance of solving Brazil’s economic problems before the 1994 elections, and is likely to end up as an unpopular lame duck.

His strongest support so far is coming from the Social Democratic Party, which has an able lineup of leaders. One of them is Sen. Fernando Henrique Cardoso, who is expected to be Franco’s foreign minister. Cardoso, 61, told foreign correspondents Wednesday that Franco may not announce his Cabinet until Monday because of the disagreement over the Economy Ministry. But Cardoso said Franco will have the final say on any Cabinet selection.

“No party will veto anyone,” he said. “If there is a veto, it will be the president’s.”

The parties are not forming a coalition, according to Cardoso. “What there will be is a convergence of forces . . . to sustain the government,” he said. He said the new administration’s economic policy will not be clear until an economy minister is appointed, but he predicted that Franco will not reverse modernization and fiscal reform projects begun under Collor.

Brazil urgently needs tax reform, he said, adding that tax evasion in the country is calculated at about 50%. Without more tax revenues, Franco will be unable to reduce the government’s inflationary deficit.

The Money Trail

President Fernando Collor de Mello is accused of lining his pockets with millions of dollars from a government corruption scheme.

The scheme: Through a web of phantom checking accounts, he allegedly received millions of dollars from his former campaign treasurer, Paulo Cesar Farias. Investigators have estimated that Collor received $6.5 million through the scheme. He is accused of lying in a speech to the nation in which he declared that he paid all his personal expenses himself.

Where it came from: Farias reportedly operated a multimillion-dollar slush fund, collecting money through a series of corruption schemes including influence peddling, extortion, bid rigging on government contracts, overpayment of government purchases and kickbacks from contractors.

Where it went: Collor is accused of using these funds for personal gain including:

* extensive landscaping worth some $2.5 million at his personal residence.

* a new automobile.

* remodeling of his apartment in Maceio, the capital of his home state of Alagoas.

* shopping trips for his 28-year-old wife, Rosane, including more than $60,000 in lingerie purchases.

Sources: Reuters