Brazil’s federal police raided several offices of steelmaker Gerdau as part of ongoing investigations known as the Zelotes Operation (Operation Zealots).
Police suspect the company has evaded hundreds of millions of USD in taxes, and an arrest warrant has been issued for the company’s chief executive, André Gerdau Johannpeter.
The operation comes at a moment when local steelmakers are struggling to sell steel in the domestic market in a scenario of a stagnant economy; at the same time, scrutiny over corruption cases in some of Brazil’s largest companies has increased.
Despite not directly naming Gerdau earlier on Thursday, a statement from Brazil’s federal police said search and seizure warrants were conducted in the cities of Sao Paulo, Brasilia, Rio de Janeiro, Porto Alegre and Pernambuco.
A media report added that Johannpeter has agreed to voluntarily appear later on Thursday for questioning.