Saturday, August 15, 2015

Brazil launches investigation into World Cup corruption

Brazil launches investigation into World Cup corruption


Brazilian prosecutors have launched an investigation into allegations of corruption and overpricing in the construction of a stadium used during last year’s football World Cup.
They believe building construction giant Odebrecht inflated the price of the Arena Pernambuco by $12m (£7.8m).
Federal Police have carried out raids in several Brazilian cities.
The company’s president, Marcelo Odebrecht, is in jail in connection with a separate corruption scandal, reports the BBC.
He was charged last month with corruption and money laundering for allegedly paying bribes to secure contracts with the state-owned oil company, Petrobras.
Odebrecht has denied the charges and said he would appeal.
He is one of dozens of businessmen, civil servants and politicians detained over the past year as part of a major investigation of corruption at Petrobras.
With the information gathered from that investigation, prosecutors have launched Operation Fair Play, focusing on the same building companies.
Federal Police believes the bidding process for the construction of the Arena Pernambuco, near the north-eastern city of Recife, was rigged to favour Odebrecht.

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