Brazil Police: Odebrecht, Andrade Gutierrez Chief Executives Arrested

By Rogerio Jelmayer 

SÃO PAULO--Brazil's Federal Police said they arrested the chief executives of construction giants Odebrecht SA and Andrade Gutierrez on Friday morning, in the latest phase of the continuing investigation into what prosecutors and the police allege was a corruption scheme involving contracts signed by state run oil company Petróleo Brasileiro SA, or Petrobras.

The arrests mark the first time executives from Odebrecht, one of Latin America's biggest construction firms, and Andrade Gutierrez have been arrested. Both companies previously had been named in the investigation, but no executives had been arrested.

Marcelo Odebrecht and Otavio Azevedo, the chief executives of Odebrecht and Andrade Gutierrez, respectively, were among those arrested Friday, according to a police spokesman. The executives are accused of participating in the formation of cartels, money laundering and corruption, the police spokesman said.

The lawyer for Odebrecht declined to comment for this article, and a spokeswoman for Andrade Gutierrez declined to provide the name of the company's lawyer. The company said in a short note that it is collaborating with the investigation, and denied any wrongdoing.

In a statement, Odebrecht said that its offices in São Paulo and Rio de Janeiro were searched by police, but it didn't confirm the arrests. The company said that the police operation was unnecessary, since the company is cooperating with the authorities' investigation. Odebrecht officials have previously denied any involvement in the alleged scheme.

Other top executives of both companies were also arrested. The police will unveil more details during a press conference later Friday, according to a police spokesman.

Write to Rogerio Jelmayer at [e-mail]

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