(Note that your OP article is just a rehash of what was said in early February, quoting a Fox News article from the 14th Feb. The following is from after that: )
Brazil, world health officials deny link between pesticide and microcephaly
The Brazilian Health Ministry says that "there is no epidemiological studies showing the association between the use of Pyriproxyfen and microcephaly."
In a statement, the ministry also says that "unlike the relationship between the Zika virus and microcephaly, which has had its confirmation attested in tests that indicated the presence of the virus in samples of blood, tissue and amniotic fluid, the association between the use of Pyriproxyfen and microcephaly has no scientific basis.
"Importantly, some localities that do not use Pyriproxyfen were also reported cases of microcephaly."
Pyriproxyfen is one of 12 larvicides that the WHO recommends to reduce mosquito populations. The WHO says the product is intended to manage insecticide-resistant mosquitoes and has been used since the late 1990s.
http://edition.cnn.com/2016/02/17/health/brazil-who-pesticide-microcephaly-zika/
So, yes, it was a hoax. No, it's not new. It's an out-of-date rumour that subsequent science has shown to be baseless (though the science was pretty clear at the time that it's the virus). You should read the links people have given you.