GTECH Corporation: GTECH says not linked to scandal in Brazil
A fired government aide met with executives from GTECH's Brazilian unit but was not involved in negotiations
West Greenwich, Rhode Island-based GTECH Holdings Corp., the world's biggest supplier of online lottery systems, said yesterday a Brazilian government aide who was fired amid a probe of campaign finance allegations wasn't involved in extending the company's contract in the country.
Waldomiro Diniz met with two executives from the company's Brazilian unit last year to discuss a contract dispute with Caixa Economic Federal, a federal bank that runs Brazil's national lottery, GTECH spokesman Robert Vincent said.
GTECH dealt with officials of the bank, Vincent said, and won the extension through cooperation and by granting concessions to Caixa. Diniz, who oversaw the Rio de Janiero state lottery, had requested a meeting with GTECH about the dispute, but didn't participate in later discussions.
"He had no involvement," Vincent said.
Diniz was fired this month for allegedly soliciting campaign contributions from an illegal gambling ring on behalf of President Luiz Inacio Lula da Silva's Workers' Party in 2002. Vincent said GTECH didn't make any contributions to Lula's Workers' Party because it is corporate policy.
GTECH won a 25-month contract extension with Caixa in April 2003, which it said is expected to generate as much as $140 million in service revenue.
The meeting between GTECH executives and Diniz was reported earlier by the Wall Street Journal.