Brazil starts investigating World Cup corruption

Brazilian prosecutors launch investigation into claims that the bidding process for the construction of the Arena Pernambuco was rigged to favour Odebrecht and that civil servants were bribed by the construction giant

The Arena Pernambuco has a capacity for 46,000 people
The Arena Pernambuco has a capacity for 46,000 people

Brazilian prosecutors have commenced an investigation into allegations of corruption and overpricing in the construction of a stadium used during the 2014 World Cup.

Operation Fair Play will look into claims that construction giant Odebrecht inflated the price of the Arena Pernambuco by around $12 million, and that the bidding process for the stadium's construction was rigged to favour Odebrecht.

Investigators will also look into evidence that civil servants were bribed by the building company.

"There wasn't proper competition," Federal Police investigator Marcello Diniz told O Globo newspaper, adding that Odebrecht was invited to take part in the process a year before details were made public, while other competitors were given only 45 days to prepare their bids.

The Arena Pernambuco, with a capacity for 46,000 people, was used in five World Cup matches. Its official cost has never been disclosed, but it is estimated to have cost around 700m reais ($200 million).

Hundreds of thousands of Brazilians had taken to the streets in the months that preceded last year’s World Cup to protest against allegations of corruption and overspending in the preparations for the event.

The protestors objected to the huge cost of the tournament, arguing that more money should have been spent on public services to ease inequality in the country.

Odebrecht is the biggest construction company in Latin America, and it employs more than 180,000 people in 21 countries.

Its president Marcelo Odebrecht, is in jail in connection with a separate corruption scandal, after being charged last month with corruption and money laundering for allegedly having paid bribes to secure contracts with the state-owned oil company, Petrobras.

Odebrecht, one of several businessmen, civil servants and politicians detained over the past year as part of an investigation into the Petrobas scandal. has denied the charges and said he would appeal.