Peru makes 1st arrest tied to Brazil kickbacks scandal

Associated Press

LIMA, Peru (AP) — Police in Peru have arrested a former transport official as part of a massive graft scandal implicating Brazilian construction giant Odebrecht and several regional governments.

Edwn Luyo headed the committee that awarded Odebrecht a contract in 2009 to build Lima's elevated metro. He was arrested Friday night.

Prosecutors said Luyo and a former deputy communications minister they are seeking were among officials in former President Alan Garcia's government who alleged received some $7 million in bribes for the project.

As part of a plea agreement with the U.S. Justice Department Odebrecht admitted paying almost $800 million in bribes to win business in 12 countries. In Peru it paid $29 million to officials in three administrations since 1998.

Colombia made two arrests earlier this month as part of the region-wide probe