Rio rescinds Maracana Stadium contract

Source: Xinhua| 2019-03-19 07:27:11|Editor: Yamei
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RIO DE JANEIRO, March 18 (Xinhua) -- A consortium led by Odebrecht, the Brazilian construction firm caught up in the country's sprawling Lava Jato corruption probe, has been stripped of a concession to operate the iconic Maracana Stadium.

Rio de Janeiro governor Wilson Witzel announced the decision on Monday, accusing Consorcio Maracana of owing the state around 10 million US dollars in unpaid rights dating back two years.

"We are retaking the Maracana," Witzel told a news conference. "It will be run by the state in a partnership with clubs. I don't see any difficulties in that."

Consorcio Maracana was awarded a 35-year concession to operate the stadium in 2013 following a 500 million US-dollar revamp of the venue for the 2014 World Cup and 2016 Olympic Games.

The stadium has suffered from periods of neglect in the past two and a half years, despite staging regular home matches of local football clubs Flamengo and Fluminense.

Witzel said the recision would take effect within 30 days, adding that the Maracana would be operated in future under a cooperative arrangement between the private and public sectors.

Besides the alleged contract breaches, Witzel said the stadium could not be run by a company linked to Lava Jato, considered Brazil's largest ever corruption scandal.

Several Odebrecht executives, including its CEO, were jailed for taking part in a scheme in which investigators said billions of dollars were funnelled to politicians in return for lucrative public contracts.

Consorcio Maracana said it would comment after analyzing the decision.

Witzel said the move would not affect the Copa America, to be played in Brazil from June 14 to July 7. The Maracana is scheduled to host five matches in the tournament, including the final.

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