Brazil’s federal police arrested Antonio Palocci, a former finance minister and presidential chief of staff, in connection with the corruption probe at state-owned energy company Petrobras as the investigation ensnares more high-ranking officials tied to Brazil’s former ruling party.
Prosecutors on Monday said they believe Palocci was a liaison between the Worker’s Party, known as the PT, and Odebrecht, Latin America’s largest construction conglomerate, in the political kickback scheme at Petrobras.
Palocci’s arrest comes days after police detained Guido Mantega, who succeeded Palocci as finance minister under former President Luiz Inácio Lula da Silva. Palocci also served as chief of staff to former President Dilma Rousseff, who was ousted from office in August after an impeachment vote.
Prosecutors say Odebrecht paid nearly $40m from 2008 to 2013 to members of the PT in an an effort to win contracts with Petrobras. Investigators say Palocci helped Obredecht win approval of loans from the national development bank BNDES and backed legislation in congress that favored the company.
A lawyer for Palocci could not be reached for comment.
Last week, authorities detained and then released Mantega, who in 2012 was chairman of Petrobras, after he was held in custody for several hours.
Marcelo Odebrecht, the former CEO of Obredecht, was convicted in of corruption and money laundering and sentenced in March to 19 years in prison for his role in the scandal.
Odebrecht did not immediately comment on Palocci’s arrest.