Brazil court blocks funds for Olympic project, suspects fraud: source

Reuters News
Posted: Mar 29, 2016 11:54 AM

RIO DE JANEIRO (Reuters) - A court in Rio de Janeiro has blocked funding from state lender Caixa Economica Federal [CEF.UL] to the consortium building the Olympic Deodoro complex where 11 sports will be held in August, a source familiar with the matter told Reuters on Tuesday.

News site G1 reported earlier on Tuesday that the suspended funds totaled 128.5 million reais ($35 million). Prosecutors in Rio claim to have found evidence of fraud in earthmoving services at the complex based on documents they have seen, G1 said.

Deodoro is the second-largest cluster of Olympic venues. The Rio prosecutors' office, the regional court, Rio mayor's office and Caixa would not confirm the blocked funds.

(Reporting by Rodrigo Viga Gaier and Pedro Fonseca; Writing by Stephen Eisenhammer; Editing by Daniel Flynn)