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Police have searched the offices of Philips in Brazil and are executing arrest warrants for two people linked to the Dutch electronics company.
Wednesday’s operation is part of an investigation into suspected fraud in the supply of medical equipment to the National Institute of Traumatology and Orthopedics and the Rio de Janeiro Health Department.
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Prosecutors allege that several companies formed a cartel to win and inflate contracts. In all, 22 arrest warrants were issued and 44 addresses searched.
Prosecutors say two warrants are for people linked to Philips. The company says one had been an executive who has left the company, while the other works in sales. It says the current employee was brought in for questioning and that the company is cooperating with the authorities.