Brazilian police on Wednesday said a luxury beach-front apartment used by former President Luiz Inácio Lula da Silva was “highly suspect” as part of an investigation into alleged corruption at state-run oil company Petrobras. They said they were opening a formal investigation into the former President’s holdings, including the apartment. The apartment is formally owned by contractor OAS, currently under investigation for alleged payment of bribes in order to obtain Petrobras contracts. According to police, OAS may have effectively handed over the apartment to former President Lula as part of a systematic effort to curry favor with the ruling PT (Partido dos Trabalhadores). The apartment is located in the São Paulo beach resort of Guarujá. Former President Lula has admitted using the apartment for himself and members of his family but only as guests of OAS.
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