UPDATE 1-Petrobras graft scheme origin tied to Lula’s ex-chief of staff -prosecutor

(Reuters) – A massive corruption and political kickback scheme at Brazil’s state-run oil company Petrobras started with former president Luiz Inacio Lula da Silva’s chief of staff, a lead prosecutor said on Monday.

Prosecutor Carlos Fernando dos Santos Lima said the bribery scheme at Petroleo Brasileiro SA, as Petrobras is formally known, had the same origins as Brazil’s previous political scandal, the “mensalao” or big monthly payment scheme, in the offices of Lula’s top aide from 2003-2005, Jose Dirceu.

Dirceu was charged with corruption, money laundering and racketeering on Sept. 4 in the Petrobras case after being arrested in August. He was already under house arrest for the earlier corruption case.

Lima pointed at Dirceu as the mastermind of the graft cases during news conference held in the southern city of Curitiba to announce the arrest of Jose Sobrinho, one of three owners of construction firm Engevix, for allegedly paying bribes to executives of another state-run company.

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