Los Angeles Times

2 Brazilian executives arrested in graft inquiry

- By Vincent Bevins

SAO PAULO, Brazil — Police arrested the heads of Brazil’s two largest constructi­on companies Friday, as an investigat­ion of a multibilli­on-dollar corruption scheme involving statecontr­olled oil company Petrobras, which has rocked the government and economy since last year, pushes further toward the top of the country’s corporate world.

Marcelo Odebrecht and Otavio Marques, presidents of constructi­on companies bearing their names, were arrested and federal police said 21 warrants had been issued for employees of the two firms. Authoritie­s said they are investigat­ing corruption, embezzleme­nt of public finances, money laundering and racketeeri­ng.

Odebrecht is the largest constructi­on company in Latin America.

The so-called Car Wash investigat­ion has slowly outlined the contours of a vast scheme in which billions of dollars were allegedly diverted from Petrobras to large constructi­on firms, which then passed on payments to political parties.

As the inquiry expanded this year, President Dilma Rousseff ’s approval ratings have dropped and growth has stalled. Bevins is a special correspond­ent.

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