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Brazil construction companies rigged World Cup bids, antitrust body says

Brazil's antitrust body says several construction companies rigged their bids for 2014 World Cup stadiums, driving up costs by overcharging for the work.

"So far, there are indications that at least five bids related to World Cup stadiums were the subject of the cartel," the antitrust body CADE said in a statement.

Included in the five bids is Rio de Janeiro's famous Maracana, where Germany defeated Argentina 1-0 in the World Cup final.

Two other stadiums named on Monday in the statement were in the northeastern city of Recife, and in Belo Horizonte in the southeast. The other two stadiums were not named.

CADE said three other stadiums used in the World Cup also could have been tainted by corruption. They were named as venues in Fortaleza, Natal and Salvador -- all cities in the northeast.

Brazil used 12 stadiums for the World Cup, though FIFA required only eight venues.

Four of the new or remodeled stadiums were built in cities without top-division clubs and have become white elephants. They included Cuiaba, Natal, Brasilia and the Amazon city of Manaus.

CADE said it obtained the bid-rigging information in a leniency agreement with construction company Andrade Gutierrez. It said the companies worked with an "anti-competitive agreement" to rig bid prices.

Reports have been widespread about corruption linked to World Cup stadiums. Investigations are also ongoing involving construction projects tied to this year's Olympics in Rio de Janeiro.

An analysis last year said Brazil spent about $3 billion on new and refurbished World Cup stadiums, with 90 percent of the funding being public money. Reports say Brazil spent about $15 billion overall to organize the World Cup, and about the same on the Olympics.

The expenditures have been widely criticised as Brazil has plunged into a deep recession with several states -- including Rio de Janeiro state -- being months behind paying public service workers like teachers and hospital employees.