The once-immensely popular president, who governed from 2003 to 2010 and remains a towering figure in Brazil, angrily denounced the morning raid as part of a campaign to sully his image, that of his party and that of his hand-picked successor, President Dilma Rousseff.
Rousseff also expressed her "total inconformity" with the operation, which she called unnecessary, although she appeared to distance herself from her one-time mentor by barely mentioning Silva in an address yesterday afternoon.
Police arrived at about 6 am at Silva's residence in greater Sao Paulo's Sao Bernardo do Campo and spirited the 70-year-old to a federal police station at the city's Congonhas airport. Silva was released after around four hours of questioning.
Police said they also searched the headquarters of his non-profit foundation Instituto Lula, as well as properties connected to his sons and other family members. One of his sons was brought in for questioning.
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Judge Sergio Moro, who is heading the Petrobras investigation, said he allowed the police to haul in Silva for security reasons, citing fears that demonstrations could complicate efforts to question him. He also stipulated that police were not to handcuff or film the former leader.
Officials said they were looking into 30 million Brazilian reais (USD 8.12 million) in payments for speeches and donations to the Instituto Lula by construction firms that were crucial players in the Petrobras corruption scheme.
"No one is exempt from investigation in this country," said public prosecutor Carlos Fernando dos Santos Lima.
"Anyone in Brazil is subject to be investigated when there are indications of a crime."
Prosecutors in the so-called Car Wash corruption case say more than USD 2 billion was paid in bribes to obtain Petrobras contracts, with some money making its way to several political parties, including the governing Workers' Party.