By Rodrigo Viga Gaier and Pedro Fonseca
A federal court in Brazil has blocked funding for the construction of an Olympic venue on suspicion of corruption, a source involved in preparations has revealed.
Just four months out from the start of the Rio Games, state lender Caixa Economica Federal confirmed it suspended payments to a consortium building the Olympic Deodoro complex - where 11 sports including rugby sevens and BMX will be held.
The lender said the suspension was as a result of a court order, but could not give a reason for the suspension as the case was under seal.
The news was first reported by the G1 website earlier on Tuesday, which said the suspended funds totaled $US35 million.
According to the report, prosecutors in Rio say they found evidence of fraud in earthmoving services at the venue.
The Slalom Canoe Circuit (Reuters)
The Deodoro consortium is made up of builders Queiroz Galvo and OAS, a separate source told Reuters.
The two companies are already deeply ensnared in a far-reaching investigation into corruption at state-run oil company Petrobras.
Queiroz Galvo said in an email it could not comment as it had not yet been notified, while OAS declined to comment.
Deodoro is Rio's second-largest Olympic cluster with nine venues being built, seven having already been completed.
Police and prosecutors previously said they suspect corruption in Olympic building projects because they were carried out by the same major construction and engineering firms that have already been charged with graft in the Petrobras case.
Reuters
