Minister Who Served Under Lula and Rousseff Arrested in Fraud Probe

09/22/2016 - 12h21

Ex minister of Finance Guido Mantega was arrested by the Federal Police during a new phase of the Lava Jato investigation. Mantega was arrested at Albert Einstein hospital, where his wife is receiving medical attention.

The Federal Police team was looking to arrest Mantega at his home, in the neighborhood of Pinheiros, on São Paulo's west side. At his residence -which is a target of the investigation-, his son was the only one to be found. The ex minister was with his wife who was undergoing surgery at Albert Einstein hosptal in Morumbi.

The Federal Police decided to go to the hospital to find Mantega. "We just hope they don't interfere with the surgery," said José Roberto Batochio, Mantega's attorney.

The arrest is temporary, as mandated for specific cases. The arrest is for a five day period, renewable for the same amount of time if deemed necessary.

The 34th phase of Operation Lava Jato, known as Operation Archive X, addresses 49 court orders, 33 of them search warrants, 8 temporary arrest warrants and 8 subpoenas (when a person is summoned to testify).

In addition to Mantega, executives from the companies Mendes Júnior and OSX, led by CEO Eike Batista, are also under investigation.

The Federal Police have evidence to suggest that Mantega worked directly with the leadership of one of the companies to negotiate the transfer of funds to the Workers' Party (PT), with the intention to pay off campaign debts.

In a statement before the Federal Public Ministry, CEO Eike Batista said he was sought by Mantega to make a payment of R$ 5 million (US$ 1.5 million) to the PT, in November 2012. Under the party's direction, he signed a fraudulent contract with an advertising company to execute the transfers, completed overseas, in the sum of US $2.35 million.

The alleged transfers add up to nearly R$ 22 million (US$ 6.7 million). Among the beneficiaries, the company Credencial Constructora (which, according to the Federal Public Ministry, had already been used in the past by ex-minister José Dirceu to receive bribes) and a banker already charged in Operation Lava Jato.

Suspected crimes include corruption, bid rigging, conspiracy and money laundering, among others.

The court orders are being executed in cities in the states of São Paulo, Rio de Janeiro, Rio Grande do Sul, Minas Gerais and Bahia.

THE OTHER SIDE

According to company Mendes Júnior Marcelo Leonardo's attorney, "the company was in the middle of negotiating a leniency agreement and plea bargain and was surprised by the operation since it involves facts that fall within the scope of the arrangement."

He accused the investigators of using information provided by the company before the agreement had been finalized.

Translated by SUGHEY RAMIREZ

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