It is the second time this week that police in Brasilia caught someone with explosives who apparently intended to attack the ceremony.
The left-wing Lula da Silva won the elections in October with just over half of the vote. Radical opponents of him and his party, the Workers’ Party (PT), which has been discredited by corruption scandals, claim election fraud.
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Tens of thousands of Lula supporters, often dressed in red, had taken over downtown Brasilia on Sunday, just hours before the historic leader of the political left was due to be sworn in as Brazil’s president for a third time.
Up to 300,000 people are expected in the capital for ceremonies that are arranged down to the millimeter and attended by 17 heads of state. A folk festival with concerts is also planned.