Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Brazil police seek graft charges against ex-President Lula

Published 08/26/2016, 02:51 PM
Updated 08/26/2016, 02:51 PM
© Reuters. Brazil's President  Lula da Silva talks with his wife Marisa Leticia during a ceremony at Planalto Palace in Brasilia

By Eduardo Simões and Daniel Flynn

SAO PAULO (Reuters) - Federal police in Brazil urged prosecutors on Friday to bring corruption charges against former President Luiz Inacio Lula da Silva and his wife, Marisa, according to police documents seen by Reuters.

The investigation into the popular predecessor and mentor of suspended President Dilma Rousseff forms part of a sweeping anti-corruption probe into political kickbacks from contracts at state-run oil company Petroleo Brasileiro SA.

The allegations against Lula and his wife relate to the acquisition and renovation of an apartment in the beach resort of Guaruja, about 37 miles (60 km) southeast of Sao Paulo.

Federal police in the southern city of Curitiba accuse Lula and his wife of receiving some 2.4 million reais ($747,896) in benefits from construction company OAS in relation to the apartment.

Police alleged that the apartment in Guaruja, which was bought and refurbished by OAS, was for all intents and purposes a gift to Lula and his family.

A spokesperson for Lula, who has previously denied any wrongdoing, declined to comment.

Under Brazilian law, police can only recommend that a suspect be charged, but it is up to prosecutors to actually lodge charges.

Federal prosecutors would not comment on Friday on what, if any, action they may take against Lula and his wife or others involved in the case.

Police also recommended that corruption charges be brought against former OAS Chief Executive Jose Aldemario "Leo" Pinheiro; the president of the Lula Institute, Paulo Okamoto; and an architect who worked on the apartment, Paulo Gordilho.

OAS is among 31 builders that colluded to rig contracts at Petrobras. Pinheiro has already been convicted in the corruption probe and local newspapers have reported he is preparing to name Lula in a plea bargain deal with prosecutors.

A lawyer for Pinheiro declined to comment.

Friday's request by the police is the latest in a series of legal headaches for the former president and it comes as Rousseff faces an impeachment trial in the Senate on charges of breaking budgetary laws.

Rousseff, who denies any wrongdoing, is expected to be dismissed from office next week.

Last week, a Federal Supreme Court justice authorized the opening of an investigation into Rousseff and Lula for allegedly working to obstruct the course of the corruption probe, Globo TV reported. The court's press office did not respond to requests for comment.

© Reuters. Brazil's President  Lula da Silva talks with his wife Marisa Leticia during a ceremony at Planalto Palace in Brasilia

In late July, a federal court ruled that Lula will also stand trial for obstruction of justice for his alleged attempt to stop a jailed former Petrobras executive from collaborating with investigators.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.