Brazil’s federal police raided the offices of the consortium building the second-largest Olympics complex in Rio de Janeiro, clouding the run-up to the mega-event whose chief advocate will also face investigation in a separate case.
Authorities executed a search-and-seizure warrant at the headquarters of the Deodoro Sports Complex’s northern section, which was built by Queiroz Galvao SA and OAS SA, after investigations signaled fraud, police said in a statement. Deodoro — the first Olympic venue facing fraud allegations — will host events including slalom canoe, rugby, equestrian competitions and the pentathlon.
The Comptroller General’s Office found over-billing, falsification of receipts, and the hiring of a shell company to simulate transport and disposal of material required for works, according to a statement from Brazil’s Ministry of Transparency, Oversight and Control. The consortium of the two builders said higher costs were justified.