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Former top presidential aide arrested in Brazil's Petrobras corruption case

Xinhua, August 4, 2015 Adjust font size:

A former presidential chief of staff was arrested here on Monday in connection to a kickback scheme at Brazil's state oil giant Petrobras.

Federal Police arrested Jose Dirceu, who was the top aide to ex-President Luiz Inacio Lula da Silva (2003-2010) during his first term in office.

Dirceu was already under house arrest for his part in a vote-buying scheme called "Mensalao" or "Monthly Pay Off," which was aimed at influencing legislative votes on proposed bills.

His arrest followed a string of detention made against several incumbent and former executives of Petrobras, Brazil's largest company.

Dirceu's brother, Luiz Eduardo de Oliveira, was also arrested, in Ribeirao Preto, Sao Paulo state.

Authorities suspect JD Consulting, a firm co-owned by the two brothers, helped companies embezzle money from Petrobras.

Millions of dollars were funneled from the oil giant into private accounts through kickbacks, mainly from construction companies that won juicy contracts to build oil infrastructure.

The ongoing investigation has had a negative impact on the ruling Workers' Party, with President Dilma Rousseff's approval rating plunging to an all-time low of around 10 percent. Endi