Police search construction firms behind Olympic project

RIO DE JANEIRO — Brazil's federal police say they have searched the offices of a consortium responsible for construction at one of Rio de Janeiro's main Olympic sites.

Police said in a statement yesterday that the searches grew out of suspicions about alleged fraud in the transport and disposal of debris from construction at the Olympic site in Rio's Deodoro neighborhood. Authorities say the alleged scheme may have included falsification of documents and price inflation.

The statement said a court has blocked 128 million Brazilian reais ($37 million) set aside to pay the consortium.

The consortium is comprised of Brazilian builders implicated in the sprawling graft scheme at the country's state-run oil giant, Petrobras. The probe has ensnared some of Brazil's top businessmen and politicians.