Image copyrightReutersImage captionLula served two terms as president and left office with high approval ratings
Former Brazilian President Luiz Inacio Lula da Silva has been questioned by police and his house raided as part of a major fraud inquiry into the state oil company Petrobras.
He was released after three hours of questioning.
Lula, who left office in 2011, has denied allegations of corruption.
The long-running inquiry, known as Operation Car Wash, is probing accusations of corruption and money laundering at Petrobras.
Dozens of executives and politicians have been arrested or are under investigation on suspicion of overcharging contracts with Petrobras and using part of the money to pay for bribes and electoral campaigns.
Police said they had evidence that Lula, 70, received illicit benefits from the kickback scheme. But no charges have been brought against him so far.
Lula's institute said in a statement (in Portuguese) the "violence" against the former president was "arbitrary, illegal and unjustifiable", as he had been co-operating with the investigations.
Image copyrightAFPImage captionLula's institute headquarters in Sao Paulo was also raided
Officials said some 33 search warrants and 11 detention warrants were carried out by 200 federal police agents in the states of Rio de Janeiro, Sao Paulo and Bahia.
Lula's house in Sao Bernardo do Campo, near Sao Paulo, was raided early on Friday. The headquarters of his institute in Sao Paulo was also targeted, as were his wife, Marisa, and sons, reports said.
What next? BBC's Daniel Gallas, in Sao Paulo
Image copyrightReuters
There is much more at stake in these investigations than just Lula's personal reputation. His legacy and the future of his political project for Brazil - which has shaped the country for the past 14 years - are also under scrutiny.
Under his Workers' Party, Brazil has seen a period of spectacular economic growth and a fall in inequality.
And now, under the same party, the country is facing its worst recession in 25 years; critics point to the government's mistakes for creating the crisis.
Lula has said he is prepared to run for president in 2018. However, in order for his political project to survive, he will have to clear his name and his party's. His detention is a major obstacle in his path.
Markets in Brazil reacted strongly to the news. The value of the Brazilian currency, the real, surged 3% in the morning. Sao Paulo's main stock exchange index rose more than 4% in the initial hours of trading.
One of the lines of inquiry is that construction companies targeted by the operation could have favoured Lula in the development of a ranch and a luxury beachfront apartment. Raids in the cities where these properties are located were also carried out.
Some of these companies have also hired Lula and his institute for speeches.
"Former president Lula, besides being party leader, was the one ultimately responsible for the decision on who would be the directors at Petrobras and was one of the main beneficiaries of these crimes," a police statement quoted by Reuters news agency said.
"There is evidence that the crimes enriched him and financed electoral campaigns and the treasury of his political group."
Operation Aletheia
$2bn
paid in alleged bribes by businessmen to obtain Petrobras contracts
33 search warrants and
11 arrest warrants, carried out by
200 police officers and
30 federal tax office auditors
AP
'Search for the truth' - Brazilian media, from BBC Monitoring
Operation Car Wash, or Lava Jato in Portuguese, as the corruption investigation is known, has been closely monitored by Brazilian media over the past two years.
Many TV networks are providing live coverage from outside Lula's apartment, where protesters have gathered.
And articles reflecting what the detention means are starting to appear. One of the many headlines in the popular daily Folha de Sao Paulo quotes an opposition figure as saying: "Operations in Lula's house could be the beginning of the end".
Several newspapers are highlighting the nickname of this new phase of the investigation: "Aletheia" is a Greek word meaning "search for truth".
Supporters and opponents of the former president clashed in front of his house following the raids. Both sides have called protests for later on Friday.
Demonstrators also scuffled outside the police station where Lula was questioned.
Lula's Workers' Party strongly criticised the operation, and its leader described it as a "political spectacle" (in Portuguese).
But prosecutor Carlos Fernando dos Santos Lima defended it at a press conference, saying that no-one was exempt from prosecution.
A popular figure
Lula served two terms as president and was succeeded in office by his political protege, Dilma Rousseff.
He led Brazil during a time of rapid economic growth and is credited for lifting millions of people out of poverty.
Media captionPro and anti-Lula campaigners held a demonstration in Congonhas airport where the ex-leader was questionedImage copyrightAPImage captionLula was succeeded by Dilma Rousseff as Brazilian president in 2011
He still is a well-liked figure and has been considered as a potential candidate in presidential elections in 2018. But his popularity has been hit by recent allegations that he either had knowledge or involvement in the wrongdoings.
Lula's institute has repeatedly said the former president had never committed any illegal acts before, during or after his presidential term.
The corruption scandal threatens the government of Ms Rousseff, who has faced repeated impeachment calls, analysts say. She has denied having any knowledge of wrongdoings.
Keep these in mind as you contemplate the direction of the American government over the past 50 years and especially since the Obama election.
The Goals of Communism
(as read into the congressional record January 10, 1963, from "The Naked Communist" by Cleon Skousen)
1. U.S. acceptance of coexistence as the only alternative to atomic war.
2. U.S. willingness to capitulate in preference to engaging in atomic war.
3. Develop the illusion that total disarmament of the United States would be a demonstration of moral strength.
4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.
5. Extension of long-term loans to Russia and Soviet satellites.
6. Provide American aid to all nations regardless of Communist domination.
7. Grant recognition of Red China. Admission of Red China to the U.N.
8. Set up East and West Germany as separate states in spite of Khrushchev's promise in 1955 to settle the German question by free elections under supervision of the U.N.
9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.
10. Allow all Soviet satellites individual representation in the U.N.
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. (Some Communist leaders believe the world can be taken over as easily by the U.N. as by Moscow. Sometimes these two centers compete with each other as they are now doing in the Congo.)
12. Resist any attempt to outlaw the Communist Party.
13. Do away with all loyalty oaths.
14. Continue giving Russia access to the U.S. Patent Office.
15. Capture one or both of the political parties in the United States.
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
18. Gain control of all student newspapers.
19. Use student riots to foment public protests against programs or organizations which are under Communist attack.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policymaking positions.
21. Gain control of key positions in radio, TV, and motion pictures.
22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to "eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms."
23. Control art critics and directors of art museums. "Our plan is to promote ugliness, repulsive, meaningless art."
24. Eliminate all laws governing obscenity by calling them "censorship" and a violation of free speech and free press.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.
26. Present homosexuality, degeneracy and promiscuity as "normal, natural, healthy."
27. Infiltrate the churches and replace revealed religion with "social" religion. Discredit the Bible and emphasize the need for intellectual maturity which does not need a "religious crutch."
28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of "separation of church and state."
29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.
30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the "common man."
31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the "big picture." Give more emphasis to Russian history since the Communists took over.
32. Support any socialist movement to give centralized control over any part of the culture--education, social agencies, welfare programs, mental health clinics, etc.
33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.
34. Eliminate the House Committee on Un-American Activities.
35. Discredit and eventually dismantle the FBI.
36. Infiltrate and gain control of more unions.
37. Infiltrate and gain control of big business.
38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand.
39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.
40. Discredit the family as an institution. Encourage promiscuity and easy divorce.
41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents.
42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special-interest groups should rise up and use united force to solve economic, political or social problems.
43. Overthrow all colonial governments before native populations are ready for self-government.
44. Internationalize the Panama Canal.
45. Repeal the Connally reservation so the United States cannot prevent the World Court from seizing jurisdiction over nations and individuals alike.
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