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Sérgio Cabral, Ex-Governor of Rio de Janeiro, Arrested on Corruption Charges Sérgio Cabral, Ex-Governor of Rio de Janeiro, Arrested on Corruption Charges
(about 11 hours later)
RIO DE JANEIRO — The former governor of Rio de Janeiro, who helped bring the Summer Olympics to the city, was arrested on Thursday as part of an investigation into bribery and embezzlement in construction projects. RIO DE JANEIRO — The former governor of Rio de Janeiro, who helped bring the Summer Olympics to the city, was arrested on Thursday in a scheme that the authorities said siphoned tens of millions of dollars from huge public construction projects.
The former governor, Sérgio Cabral, was arrested as part of an inquiry into the embezzlement of 224 million reais, or about $64 million, intended for public works projects, according to the authorities. He led the state of Rio de Janeiro from 2007 to 2014, when he resigned amid suspicions of corruption and growing street protests. Federal prosecutors say they suspect that the former governor, Sérgio Cabral, led an organized crime ring that diverted at least 224 million reais, or about $64 million, in bribes for the renovation of Maracanã Stadium before the 2014 Word Cup and two other projects, according to the prosecutors.
Mr. Cabral’s arrest reflects how figures across the ideological spectrum in Brazil’s political class remain on edge as major graft investigations advance. The Workers’ Party of Dilma Rousseff, who was ousted as president in August on charges of budgetary manipulation, suffered big losses in recent municipal elections after the party was ensnared in various scandals. Mr. Cabral led the State of Rio de Janeiro from 2007 to 2014, boom times for Rio and the nation that ended with a brutal recession. He resigned amid suspicions of corruption and growing street protests.
Federal police officers picked up Mr. Cabral at his house in the upscale Rio neighborhood of Leblon on Thursday morning. The former governor insisted on a 5 percent payoff per construction project, in addition to another 1 percent for one of his aides, Lauro Coelho Jr., a federal prosecutor in Rio de Janeiro, said at a news conference on Thursday, and received monthly payments between 2007 and 2014.
Prosecutors said in a statement that they believed Mr. Cabral had led an organized-crime ring that involved bribery, corruption and money laundering by businesspeople and high-ranking politicians in the state. The prosecutor said one construction company, Andrade Gutierrez, agreed to make payments of more than $100,000 a month for at least a year. Carioca Engenharia, another company, made monthly payments of some $60,000 during Mr. Cabral’s first term, Mr. Coelho said, adding that in his second term the monthly bribes jumped to about $150,000.
Bribes were paid on contracts for public infrastructure works in the state, according to the authorities. Those works were said to have included the reconstruction of the Maracanã Stadium before the 2014 World Cup. Mr. Cabral’s arrest reflects how figures across the ideological spectrum in Brazil’s political class remain on edge as major graft investigations advance. The Workers’ Party of former President Dilma Rousseff, who was ousted in August on charges of budgetary manipulation, suffered major losses in recent municipal elections after the party was ensnared in various scandals.
Mr. Cabral, a member of the centrist Brazilian Democratic Movement Party of the current president, Michel Temer, is the second major political figure from that party to be arrested in recent months. The other was Eduardo Cunha, who resigned in July as speaker of the lower house of Parliament. For much of this year, Brazil has been rived with a series of political dramas that began with a corruption scandal looming ever larger over civic life, and culminated with Ms. Rousseff’s impeachment over the summer.
Mr. Cabral’s spokeswoman did not immediately respond to a phone message requesting comment. Mr. Cabral, while governor, was an ally of Ms. Rousseff and her predecessor Luiz Inácio Lula da Silva.
Federal police officers picked up Mr. Cabral at his house in the beachfront Rio neighborhood of Leblon on Thursday morning.
Mr. Cabral, a member of the centrist Brazilian Democratic Movement Party of the new president, Michel Temer, is the second major political figure from that party to be arrested in recent months. The other was Eduardo Cunha, who resigned in July as speaker of the lower house of Parliament.
Multiple calls made to Mr. Cabral’s spokeswoman and his lawyers went unanswered.
A statement from the prosecutor’s office said that Mr. Cabral was one of eight people for whom arrest warrants had been issued. Additionally, 38 search and seizure warrants were issued, including for property of Mr. Cabral’s wife, Adriana Ancelmo.A statement from the prosecutor’s office said that Mr. Cabral was one of eight people for whom arrest warrants had been issued. Additionally, 38 search and seizure warrants were issued, including for property of Mr. Cabral’s wife, Adriana Ancelmo.
This week, another former governor of Rio de Janeiro, Anthony Garotinho, was arrested on accusations of voter fraud. The state has been shaken by budget problems and is struggling to pay employees and maintain basic public services. This week, another former governor of Rio de Janeiro, Anthony Garotinho, was arrested on accusations of voter fraud. The state has been shaken by rising crime and is struggling to pay employees and maintain basic public services.
Federal judge Sérgio Moro, who issued one of the warrants, listed the Rio budget crisis among the reasons for the former governor’s arrest. He wrote in his judicial order that, “this was even more necessary given the notorious situation of the ruinous public finances of the government of Rio de Janeiro.”
Mr. Cabral arrived at the notoriously rough Bangu prison complex on Thursday night, where more than two dozen Brazilians waited outside to cheer his imprisonment. Many sang songs and seemed festive upon his arrival, which was shown live on Brazilian television. Among the crowd were numerous firefighters. One of them held a sign that read, “Justice is being done.”