Judge sends Lula Charges to Petrobras magistrate

Any decision to arrest Brazil's former President Luiz Inacio Lula da Silva will be made by Federal Judge Sergio Moro, who oversees a sweeping investigation into kickbacks at state-run oil firm Petrobras and approved the detention of dozens of senior executives, a judge in Sao Paulo ruled on Monday.

State prosecutors in Sao Paulo asked for an arrest warrant for Lula last week after charging him with money laundering and identity fraud for concealing ownership of a beachfront condo, in a process that had been separate from the investigation overseen by Moro in the southern city of Curitiba.

Shortly after the jurisdiction change, two presidential aides told Reuters that President Dilma Rousseff was expecting Lula, her predecessor and political mentor, to accept a position in her cabinet in coming hours. That would give him immunity from Moro, though not from the country's Supreme Court.

Sao Paulo Judge Maria Priscilla Oliveira said in her decision the state prosecutors' case had an "undeniable connection" to the Petrobras investigation in which dozens of engineering executives schemed to siphon money from Petrobras in order to bribe public officials.

Moro has already allowed federal police to detain Lula for questioning after prosecutors said he may have benefited from the scheme, an event that spurred isolated clashes between Lula's supporters and critics. Lula has disavowed ownership of the apartment and denied any wrongdoing, calling the investigation political in nature.

The investigation of Lula has bolstered calls for Rousseff to step down or be impeached. Hundreds of thousands of anti-government protesters flooded the streets on Sunday, many carrying signs in support of judge Moro.

Reporting by Caroline Stauffer