Former Rio governor found engaged in extensive money laundering since leaving office

A former governor of Brazil's crisis-ridden Rio de Janeiro state was engaged in extensive money laundering activities that caused the state to lose nearly 65 million U.S. dollars, local news site G1 reported Friday.

The prosecution's investigation shows that Objetiva, a company founded by Sergio Cabral after he left office in 2014, was involved in a major money laundering scheme, the report said.

Cabral, suspected of corruption, bribe-taking, money laundering and embezzlement of public funds, was arrested Thursday.

During Cabral's administration, tax exemptions were granted abundantly, even to companies that had -- and have -- significant debt with the state government.

Tax exemptions that led to a fall in tax collection, along with other factors such as the fall in oil prices, which deeply affected the oil-dependent state economy, and worsens the general crisis in Brazil. Endi