Weekend Argus (Saturday Edition)
Brazil’s Lula held over graft probe
SAO PAULO/BRASILIA: Former Brazilian president Luiz Inacio Lula da Silva has been detained for questioning after a federal investigation of a bribery and money laundering scheme that police say financed campaigns of the ruling Workers’ Party.
His detention yesterday was the highest profile arrest in a sweeping corruption investigation that has ensnared powerful lawmakers and businessmen.
The arrest threatened to tarnish the legacy of Brazil’s most powerful politician and the tactics his left-leaning Workers’ Party used to consolidate its position since rising to power 13 years ago.
Police, who arrested Lula at his home on the outskirts of Sao Paulo, said they had evidence he received kickbacks at state oil firm Petroleo Brasileiro SA and luxury real estate.
The evidence brought the investigation closer to his protegee and successor, President Dilma Rousseff, who is fighting off impeachment over an unrelated issue and is struggling to pull the country out of serious economic downturn.
The foundation, which has consistently denied any wrongdoing by Lula, called his arrest “arbitrary, illegal and unjustifiable.”
Rousseff has also repeatedly denied any wrongdoing.
In the street outside Lula’s home, television showed his supporters in red shirts exchanging chants, insults and even blows with opponents.
Dozens of police arrived to break up the altercations, clearing the street by force.
Federal prosecutors who ordered yesterday’s raids said there was evidence the former president received funds from the graft scheme at state oil giant Petrobras through work on a luxury beach-side penthouse and a country home.
Lula has said the apartment is not his and belongs to engineering group OAS, but prosecutors say doormen, OAS engineers and third-party contractors all said the condo was intended for Lula’s family.
Prosecutors are also investigating payments to Lula by companies involved in the Petrobras scandal that were claimed to be donations and fees for speaking appearances.
Investigators also turned up evidence that Lula received at least 1 million reais ($270 000) in 2014 from OAS with no apparent legal justification by way of improvements and expensive furniture for the beachfront penthouse in Guaruja.
Investigators say Lula acquired two country estates in Atibaia worth 1.5 million reais, between 2010 and 2014, from businessman José Carlos Bumlai and builders Odebrecht and OAS.
Further evidence shows that OAS paid about 1.3 million reais for transport and storage of “items withdrawn from the Alvorada presidential palace when he left office.”
Police said they carried out 33 search warrants and 11 arrest warrants in the latest round of the investigation, which is known as Operation Carwash. – Reuters