Paul Kiernan – The Wall Street Journal, 06/07/2016
RIO DE JANEIRO—Brazil’s Federal Police raided the headquarters of a consortium of companies building one of the main 2016 Olympic centers on Tuesday, fueling concerns that malfeasance may have tainted Games-related construction projects.
Investigators say they have uncovered evidence of fraud and falsification of documents related to disposal of construction waste—mainly dirt— at Rio’s Deodoro sports complex. A federal judge has also frozen 128 million reais ($37 million) in federal funding from state bank Caixa Econômica Federal to pay for the project.
The consortium building Deodoro consists of Brazilian construction giants Queiroz Galvão and OAS SA, both of which have been implicated in a massive graft scandalsurrounding state oil company Petróleo Brasileiro SA, or Petrobras. Several executives from OAS have been sentenced to up to 16 years in prison for corruption-related offenses, and the company is in bankruptcy protection. Two executives of Queiroz Galvão, which is under investigation, were temporarily arrested in late 2014.