July 6, 2016 / 11:47 AM / 2 years ago

Brazil police arrests nine over corruption at nuclear plant

BRASILIA, July 6 (Reuters) - Brazil’s federal police on Wednesday said it served nine arrest warrants in two states as part of a corruption investigation into a nuclear power plant in Rio de Janeiro.

Police did not disclose the names of the suspects. The probe into Eletronuclear, the nuclear power subsidiary of state-run electric utility Eletrobras, is an outgrowth of a corruption investigation over kickbacks and price-fixing at state-run oil company Petroleo Brasileiro SA, police said.

In a statement, police said engineering companies colluded to overcharge Eletronuclear for the construction of the Angra 3 plant near Rio de Janeiro. Angra 3 is being built by many of the same firms whose executives are on trial or in jail on charges of forming a cartel that overcharged Petrobras for work and used the excess funds to bribe executives and politicians.

Eletronuclear expects Angra 3 to start operating in December 2018, with capacity to generate up to 1,405 megawatts.

Representatives of Eletronuclear did not immediately respond to requests for comment. (Reporting by Silvio Cascione; Editing by Lisa Von Ahn)

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