OREANDA-NEWS. Brazilian conglomerate Odebrecht, Latin America's largest construction company, was targeted by federal police again today in the colossal Lava Jato investigation into systemic corruption at state-controlled Petrobras.

The police searched Odebrecht?s offices in Rio de Janeiro and Sao Paulo and arrested 10 individuals, including Odebrecht executives, in an early morning sweep.

According to federal prosecutors, Odebrecht maintained an internal "anti-compliance" division that handled bribe payments to public officials.

Evidence collected in previous phases of the investigation suggests Odebrecht coordinated illegal payments through a sophisticated system involving 14 executives.

Prosecutors say evidence indicates the company's former chief executive Marcelo Odebrecht knew of the vast scheme and supervised some payments.

The company says it is cooperating with investigators. It has previously denied any involvement in corruption.

Earlier this month, Marcelo Odebrecht, grandson of the company's founder, and two other Odebrecht executives were sentenced to 19 years in prison for corruption, money laundering and criminal association.

Prosecutors are seeking around $2bn in damages from Odebrecht and a ban from public-sector bidding and tax benefits.

Odebrecht and around two dozen mainly Brazilian firms have already been disqualified from bidding on Petrobras contracts.

The company's problems have helped fuel the political and economic crisis that has rocked Brazil for more than a year.

The company has been a leading contractor for Petrobras, engaging in major upstream, downstream and midstream projects, in addition to infrastructure projects across the country and the region in countries such as Peru and Venezuela.

Odebrecht?s absence from future tenders for sub-salt production platforms could drive up Petrobras? costs for new units.

Odebrecht says its operations in Brazil remain unaffected, but its problems stemming from the Lava Jato investigation have contributed to a virtual freeze on new activity in Brazil's civil construction sector.

Problems in the civil construction sector contributed to the 3.8pc contraction of Brazil's economy in 2015, the worst in 25 years.

The foundering economy has increased pressure on embattled Brazilian president Dilma Rousseff, who is now facing impeachment proceedings for allegations unrelated to corruption at Petrobras.

Rousseff has tried to slow the political momentum building against her, but recent controversial decisions appear to have further emboldened the opposition.

Among the most damaging moves was Rousseff's recent appointment of her predecessor Luiz In?cio Lula da Silva as her chief of staff.

Known as Lula, the popular former president is under investigation for receiving bribes and personal favors from Odebrecht, among other companies connected to corruption at Petrobras.

Lula's appointment to the cabinet, which would have afforded him a high level of legal immunity, was blocked last week by a supreme court justice. Today, the same court declined to rule on the government's request to overturn that decision, keeping him out of the cabinet and potentially exposed to further legal trouble. In theory, Lula could be taken into police custody before the high court reconvenes next month.