Sao Paulo--The treasurer of Brazil's ruling Workers' Party, Joao Vaccari Neto, was arrested Thursday in a widening scandal surrounding the Petrobras oil giant.
A spokesman for the federal police told AFP that Vaccari was temporarily held for questioning in a corruption probe that has drawn in a number of politicians -- including members of President Dilma Rousseff's ruling coalition.
The arrest comes one day after Petrobras chief executive Graca Foster resigned as a result of the scandal, along with the entire board of directors.
Investigators say Petrobras executives and construction companies colluded to inflate contracts by up to six percent with illicit surcharges.
The extra cash allegedly was passed on to front companies to be laundered and paid out in bribes, prosecutors say.
Rousseff, who was sworn in for a new four-year term on January 1, chaired the Petrobras board from 2003 to 2010, during much of the time when the illicit activity is said to have been going on.
The investigation also is targeting the country's largest construction firm, accused of bribing Petrobras executives to secure big contracts.
AFP
