Brazilian police have carried out several raids as part of a growing corruption investigation involving a close ally of President Luiz Inácio Lula da Silva.
Authorities executed 18 search-and-seizure warrants in Brasília and the states of Bahia and São Paulo as part of a probe linked to alleged financial irregularities involving the former Banco Master.
One of the targets was Senator Jaques Wagner, a senior member of Lula’s Workers’ Party and former governor of Bahia.
Brazil’s Supreme Court approved the investigation into a possible illegal relationship between Wagner and Banco Master, including allegations that he received financial benefits and other advantages from the bank.
Investigators allege Wagner supported the bank’s interests by backing a failed constitutional proposal that would have increased the amount of money protected by a banking insurance fund during financial crises.
Wagner has denied any wrongdoing, saying his assets are legitimate. He also said President Lula contacted him to express support and confidence.
The scandal has expanded to involve politicians from different sides of Brazil’s political divide and could affect the country’s upcoming presidential election.
The investigation also involves Daniel Vorcaro, the former owner of Banco Master, who was arrested over accusations including fraud and money laundering.
Meanwhile, right-wing presidential candidate Senator Flávio Bolsonaro has also faced questions over alleged contacts with Vorcaro, though he denies any misconduct.
The corruption case comes as Brazil prepares for a major presidential race, with security, corruption, and economic issues expected to be key campaign topics.
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