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Corruption investigation brings more bad news for 2016 Summer Olympics

As if the 2016 Rio de Janeiro Olympics needed more bad publicity, a report out of Brazil says funding for the construction of a major venue has been blocked while authorities investigate allegations of corruption.

A federal court suspended about $35 million in payments to a consortium that is working on the Deodoro complex, where numerous events are to be played, the Brazilian website G1 said.

There have been questions about fraud involving earth-moving work at the site. The companies involved have also been implicated in a larger scandal surrounding the state-run Petrobras oil company.

Much of the Deodoro cluster has already been completed, with seven of nine venues ready for the Games. Work is still being done on equestrian and shooting venues.

Organizers of the Rio Olympics have struggled with an array of issues, including a slumping Brazilian economy and a Zika virus outbreak. They have insisted that the massive sporting event will proceed on schedule in August.

Copyright © 2016, Los Angeles Times
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