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He helped steer Latin America's largest economy through a commodities boom at the height of Workers Party rule, but came under withering criticism in 2011 and beyond as the economy began sliding into its worst recession since the 1930s. Mantega left office in 2015 at the start of Rousseff's second term after years of complaints from critics about faulty economic forecasts and ineffective industrial policies. Attorneys for Mantega did not immediately respond to requests for comment, but his political allies excoriated the decision to arrest him. Workers Party President Rui Falcao called the arrest "arbitrary, inhuman and unnecessary" and questioned the timing of the operation just over a week before municipal elections throughout the country. Police executed warrants for eight arrests and 32 search and seizure operations in five states and the capital Brasilia on Thursday, according to prosecutors. They said the operation targeted Mantega and engineering firms Mendes Junior and OSX Construcao Naval SA, part of a commodities empire built by former billionaire Eike Batista. Police named the latest phase of the sweeping two-year-old Petrobras probe "Operation X Files" in a reference to the letter X which Batista included in the name of his oil drilling, mining, shipbuilding and logistics companies. Prosecutors said Batista came to them spontaneously to offer testimony, in which he said Mantega in a November 2012 conversation requested the payment of 5 million reais to benefit the PT. Prosecutors said that Batista eventually made an overseas payment of $2.35 million, or close to 5 million reais, to Rousseff and Lula's campaign architect, Joao Santana, along with his wife Monica Moura. Both have previously been arrested for alleged money laundering in the Petrobras scheme. Prosecutors said they believed the payment was a bribe destined for paying down debts from Rousseff's 2010 campaign, a conclusion denied by Batista, who is under investigation but was not targeted in Thursday's operation.

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