Paes oversaw preparations for the hosting of South America's first Olympics and stepped down at the end of his term shortly afterward.
Brazil's Supreme Court revealed late yesterday that Paes is among about 100 other politicians facing probes into alleged involvement in a vast embezzlement and bribery scheme in which Odebrecht was a central player.
In a statement, Paes responded that he "strenuously denies having accepted bribes to work in the interest of Odebrecht."
According to the allegations, Paes took "at least 15 million reais" from Odebrecht during his 2012 reelection campaign, when Rio was busily building the stadiums and other major infrastructure for the Olympics. That was about USD 7.5 million at the time, or USD 5 million today.
The alleged bribes were given "to facilitate contracts related to the Olympic Games," according to a Supreme Court document quoted by multiple reports in the Brazilian media.
About a third of the alleged payments were made in a foreign account, he testified.
In his denial of the allegations, the former mayor said he "had never had a foreign bank account" and that "all funds for the reelection campaign were properly declared."
Paes won the election with 65 per cent of the vote.
Odebrecht, a Brazilian construction contractor with major projects around the world, took part in refurbishing the Maracana football stadium ahead of the 2014 World Cup and the Olympic Park and athletes' village, among other facilities, ahead of the Games.
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