Brazil's ex-president Lula questioned in anti-graft bust

SAO PAULO, Brazil - Police searched the home of Brazil's powerful ex-president Luiz Inacio Lula da Silva and detained him for questioning Friday, March 4, in a probe into a huge corruption scheme, Brazilian media reported.

Brazil's O Globo news network ran images of police officials around a building they said was Silva's residence in Sao Bernardo de Campo, in greater Sao Paulo.

As agents, backed by armed officers in camouflage, went through Lula's house, supporters and opponents demonstrated in the street, shouting and scuffling, AFP journalists said.

Police said they carried out 33 search warrants and 11 arrest warrants in the latest round of the investigation, which is known as Operation Carwash.

Shares of the state oil giant Petrobras led the rally with a 14 percent surge.

"Former president Lula, beyond being party leader, was ultimately responsible for who would be the directors at Petrobras and was one of the main beneficiaries of the crimes", the statement said. Operation Car Wash has already netted a Who's Who of Brazilian politicians and businessmen.

The allegations against Lula center on a luxury seaside apartment and country house that authorities say were given to the ex-president as bribes. Petrobras has said it is a victim of the scheme and that it is cooperating with the investigation.

A spokesperson for Lula did not immediately respond to requests for comment on Friday. Police are also looking into newspaper reports that Lula received favours from construction firms in the form of work done at apartments in Atibaia and Guaruja, São Paulo.

While Ms Rousseff herself has not been accused of wrongdoing in the Petrobras probe, she is facing impeachment proceedings in Congress for her government's alleged use of the country's pension fund to shore up budget gaps. During his two terms in office, from 2003-2010, Silva presided over years of galloping economic growth, which also saw the country's chronic inequality fall, with tens of millions of poor Brazilians entering the ranks of the middle class. There is evidence that the crimes enriched him and financed electoral campaigns and the treasury of his political group.

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