Police raided a stadium in the northeastern city of Recife and other offices around Brazil on Friday as part of an investigation into fraud in contracting for the arena, which was built for the 2014 FIFA World Cup football tournament.

In a statement, federal police said contracts for the Arena Pernambuco, built and operated by a consortium led by contractor Odebrecht SA [ODBES.UL], were overpriced by as much as 42.8 million reais ($12.26 million).

Police said that the overpriced contracts amounted to fraud and a lack of transparency meant to distort bidding among competitors in the stadium project.

Odebrecht, Latin America’s biggest builder and a company with a long history of major infrastructure and other public construction projects, was also at the centre of a corruption probe around state-run oil company Petroleo Brasileiro SA, or Petrobras (PETR4.SA).

Read more

Save 40 to 60% off our best-selling products during our Memorial Day Super Sale!

Related Articles