Former Brazilian president Luiz Inacio Lula da Silva was detained for questioning in a federal investigation of a bribery and money laundering scheme that police said had financed campaigns and expenses of the ruling Workers Party.

Brazilians are going to the polls today in national elections that could see front-running candidate Dilma Rousseff become the country’s first female president, succeeding her popular ally and mentor.

In the first electoral test for President Luiz Inacio Lula da Silva and his plans to remake Latin America’s largest country, Brazilians today chose mayors and city councils nationwide.

Car maker Volkswagen, faced with slumping sales and a cooling economy, has threatened to axe 3,000 jobs at its biggest Brazilian plant if unions reject a plan to cut workers’ pay and hours by 20%.