UPDATE - Brazil arrests ex fin. minister on corruption charges

UPDATES WITH DETAILS OF MANTEGA FREED

By Senabri Silvestre

SANTO DOMINGO, Dom. Rep. (AA) – Former Brazilian Finance Minister Guido Mantega was arrested Thursday on corruption charges related to a major scandal at state-run oil giant Petrobras, local media reported.

The Workers Party’s (PT) executive who served under former presidents Luiz Inacio Lula da Silva and Dilma Rousseff, was arrested at a hospital as he accompanied his wife to a surgical procedure, according to his lawyer Jose Roberto Batochio.

Judge Sergio Moro later freed Mantega because of his wife's cancer surgery.

Moro said neither Federal Police nor prosecutors knew about the wife’s "serious illness".

Mantega’s release does not prejudice the collection of evidence, according to Moro, who said he made the decision without consulting police or the prosecutors, and that there was no risk to the investigation.

The decision to release Mantega, however, came after members of the Workers Party criticized the way the arrest was conducted.

Silva, who is also under investigation, went further and said the arrest was designed to undermine the Workers Party ahead of Oct. 2 municipal elections.

The charges against Mantega include fraud, conspiracy and money laundering for "directly" negotiating with a Petrobras contractor for the transfer of resources to pay campaign debts of a political party, according to the Federal Police.

"These funds were destined for people who have already been investigated in the framework of the operation and working in the area of marketing and political propaganda campaign of the same party", the Federal Police said in statement.

Mantega’s arrest is part of 50 court orders Federal Police implemented under an investigation into bribes to politicians in exchange for lucrative contracts at the state-run oil company.

Approximately 180 federal police officers and 30 inspectors are working to execute 33 search warrants, nine orders of temporary custody and eight coercive driving orders in five states and the Federal District.

The measures are part of phase 34 of Operation Car Wash in which prominent officials and businessmen executives have been arrested or are under investigation for their alleged roles in the multi-billion dollar corruption scandal at Petrobras.