Two execs from Rio 2016 group quit

Updated: February 20, 2012, 9:25 PM ET
Associated Press

RIO DE JANEIRO -- The head of security and the chief commercial officer for the 2016 Rio Olympic committee have both quit.

Security director Luiz Fernando Correa stepped down because of an investigation into fraud allegations by the public prosecutor's office, saying the case "may cause unease regarding his duties at the Security department."

Chief commercial officer Flavio Pestana left for undisclosed personal reasons. The committee said Monday that chief executive officer Leonardo Gryner will temporarily take over Pestana's duties until a replacement is hired.

There has been no announcement about plans to replace Correa.

"Confident of a favorable ruling, Correa aims to seek compensation for image, moral and monetary damages from those directly and indirectly responsible," the committee said in a statement.

The prosecutor's office said in January that Correa allegedly committed fraud during the 2007 Pan American Games in Rio. He is accused of spending $20 million for the purchase of security equipment that a later investigation showed was worth only $11 million.

The prosecutor's office ordered the investigation because the purchase was made without comparing market prices, which is required by law for any government acquisition made without a bidding process.

If Correa is found guilty, he will have to pay the government the amount over-billed.


Copyright 2012 by The Associated Press