Brazil's ex-president investigated for alleged business peddling

Brazil's Public Prosecutor announced on Thursday that an investigation involving former President Luiz Inacio Lula da Silva had been launched on his alleged peddling influence in favor of a construction company.

Evidence was being gathered before the formal investigation into the former president started.

Lula was allegedly involved in the Economic and Social Development Bank's decision to give loans to the country's largest builder Odebrecht after his term in office ended in 2010.

Odebrecht is one of the companies being investigated in corruption claims against Brazil's state-owned oil company Petrobras.

The former president has not commented on the matter for the moment.

In May, when the first complaints against him came out, Lula announced that the Brazilian elite feared the possibility of his return to power.

In a recent legislation shake-up, Brazil now allows unlimited re-elections, but not longer than two consecutive periods. Enditem