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Construction Company Delta Is Accused of Embezzling R$ 370 million
07/01/2016 - 11h48
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FROM RIO
FROM SÃO PAULO
FROM BRASÍLIA
A corruption scheme which, according to the Brazilian Public Prosecutor's Office, involved 18 front companies that laundered at least R$ 370 million (US$ 115 million) in public money led constructor Fernando Cavendish, the owner of construction company Delta, to become the target of an arrest warrant on Thursday, June 30.
Cavendish is not in Brazil and is considered a fugitive from justice.
The same investigation, called Saqueador operation, arrested businessmen Carlinhos Cachoeira and Adir Assad, who are accused of being the owners of the companies used in the embezzlement scheme.
The police say that Delta even received public money to carry out construction that was never put into action, such as the transposition of the Turvo River, in the south of Rio de Janeiro. The company received R$ 80 million (US$ 25 million) for the project.
The investigation showed that there were also frauds in the construction of roads, projects to depollute rivers and the construction of water sports park Maria Lenk for the Pan American Games held in Rio in 2007. The arena also will be used for the diving competitions in the Olympic Games.
Public prosecutor Leandro Metidieri says that the money embezzled was withdrawn in cash at bank tellers and later transferred to public employees as bribes. The Public Prosecutor's Office did not disclose the names of those who might have received these funds in the scheme.
Fernando Cavendish's defense say that they are "startled with the arrest warrant and will take judicial measures so as to revert the unbearable illegal actions." Delta did not want to comment.
Carlinhos Cachoeira's defense say that there are no grounds for his arrest and that they will appeal.
Lawyer Miguel Pereira Neto, who defends Adir Assad, says that the arrest warrant is a "conjecture." The defense attorneys of Cláudio Abreu, Andrade Gutierrez and Odebrecht did not want to comment.
Translated by THOMAS MUELLO