By Rodrigo Viga Gaier
RIO DE JANEIRO, Aug 14 (Reuters) – Brazil’s federal police on Friday carried out search warrants targeting former Rio de Janeiro Governor Claudio Castro, two sources familiar with the investigation told Reuters.
Castro’s lawyer said in a statement to Reuters that authorities had not searched his residence, adding that a property in the city of Petropolis that was searched has not been linked to him for months.
In a statement that did not name suspects, Brazil’s federal police said it was investigating alleged fraudulent and reckless management, money laundering, tax evasion, capital flight, market manipulation and crimes against the economic order involving fuel marketing.
The probe, which is a follow-up to an earlier operation on a privately owned refinery, is examining the alleged irregular issuance of environmental licenses for the refinery, disregarding guidance from the relevant technical bodies, as well as money laundering tied to the scheme, it added.
The former governor was targeted in another investigation into suspected tax evasion in May, when police ordered the refinery Refit to halt operations.
His defense said on Friday all actions taken during Castro’s administration complied with legal and technical requirements, adding that the state had recovered nearly 1 billion real ($192,29 million) in debt payments from Refit.
Castro resigned from office in March. An electoral court barred him from holding office for eight years for abuse of political and economic power, illicit fundraising and other issues in the 2022 general election.
($1 = 5.2004 reais)
(Reporting by Rodrigo Viga Gaier; Writing by Isabel Teles; Editing by Alex Richardson and Chizu Nomiyama)
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