The Arena Fonte Nova in Salvador has become the latest of Brazil’s stadia developed for the 2014 edition of football’s Fifa World Cup to come under investigation amid alleged corrupt acts during its development.

Brazilian federal police believe the stadium in the capital city of state of Bahia was overpriced by more than $130m (€104.8m), with these funds diverted to support political campaigns. Former Bahia Governor Jaques Wagner, a member of Brazil’s Workers’ Party, is one of the targets of the investigation and is accused of receiving around $25m in illegal funds.

A local court has rejected the federal police’s arrest request, while Wagner’s attorney, Pablo Domingues, told the Associated Press news agency that police have invented the allegations.

The 48,000-seat Arena Fonte Nova was built on the site of the old Fonte Nova Stadium and cost a reported $250m to develop. It hosted six games during the World Cup. It was also a venue for the 2013 Confederations Cup and hosted football matches during the 2016 summer Olympic Games.

Fonte Nova’s private administrators have said they are awaiting official notification about the investigation, dubbed Operation Red Card. Police claim public officials favoured construction companies OAS and Odebrecht in the tender for the demolition and reconstruction of Fonte Nova Stadium.

Brazil’s infrastructure projects for the World Cup and the Olympics have been the subject of corruption probes. The federal police last year called for 21 people to be indicted for allegedly overcharging for redevelopment work at the Estádio Nacional Mané Garrincha in Brasilia.