The arrests are the result of a month long investigation by federal prosecutors and the federal police involving more than 200 police officers.
The director of the federal police said the suspects embezzled $1.85 million dollars meant to train more than 1,900 people in tourism to prepare for the World Cup 2014. According to Reuters, the money was paid to the Ibrasi Institute to train taxi drivers, waiters and hotel staff, however it was instead diverted by officials at the Tourism Ministry.
Costa is the fourth high ranking government official to come under scrutiny for corruption since May. According to the Associated Press (AP), President Dilma Rousseff’s chief of staff, Antonio Palocci was also suspected of embezzlement during his time as a legislator from 2006 to 2010, and was forced from office in June.
In July, the Transportation Minister, Alfredo Nascimento, was also removed from office along with 25 other officials for alleged involvement in overbilling and embezzlement schemes. Also, the Latin American Herald Tribune reports on Monday federal prosecutors confiscated documents and computers from the Agriculture Ministry. The Minister of Agriculture has been subpoenaed by Congress to testify in front of an ethics committee.
Reuters reports that Brazil has been dealing with scrutiny as the next venue for the World Cup since it won the bid. Corruption allegations in the federal government have lead to many delays in infrastructure development including airports, roads and soccer stadiums being constructed and renovated in 12 cities across the country.
