HomeNewsStadiaOlympic GamesBrazil

Court blocks funding for Rio 2016 preparations

A federal court in Brazil has blocked funding for construction work at the Deodoro complex where 11 sports are set to be held at the 2016 Olympic Games, amid suspicion of corruption.

The Reuters news agency said state lender Caixa Economica Federal confirmed it suspended payments to a consortium building the Deodoro complex after receiving a court order. However, Caixa said it could not give a reason for the suspension as the case was under seal.

Brazilian website G1 first reported the development yesterday (Tuesday), stating the suspended funding totalled R$128.5m (€30.9m/$34m). According to the report, prosecutors in Rio de Janeiro say they found evidence of fraud in earthmoving services at the venue. Reuters said the Deodoro consortium is made up of builders Queiroz Galvão and OAS, two firms that are already deeply caught up in the wide-ranging investigation into corruption at state-run oil company Petrobras.

Deodoro is Rio 2016’s second-largest Olympic cluster with nine venues being built at a cost of R$800m. The complex consists of the Aquatic Centre, Equestrian Centre, Hockey Centre and Shooting Centre, as well as the Deodoro Stadium, which will host modern pentathlon and rugby sevens, and the Youth Arena, which will stage basketball and modern pentathlon.

The X-Park, which includes the Whitewater Stadium, Mountain Bike Centre and BMX Centre, is also included in the Deodoro zone. The Equestrian and Shooting Centres (pictured last month) are still under construction.