The corrupt underbelly of Brazil is in the spotlight ahead of the Olympic Games in Rio.

New Zealander Jason Lee, who lives in Rio, was reportedly forced into a car by armed police and made to withdraw hundreds of dollars.

He was then told to keep quiet about it.

Around the Rings Olympic News Agency reporter, Aaron Bauer, told Andrew Dickens he knows the Kiwi.

"Corruption is pretty endemic in Brazil," he said. "Jay is actually one of my close friends down here and I was dismayed when he told me this story, because when you're living in the south zone of Rio like we are, you're kind of removed from this stuff.

"Muggings happen, robberies happen, I've been pick-pocketed, friends of mine have been held up.

"You have a large police presence near a lot of marginalised people, and that leads to corruption happening everywhere because the Police abuse their power for their own personal gain, and Brazil has corruption everywhere as you see with the politicians, so it's kind of unavoidable."

LISTEN ABOVE: Aaron Bauer speaks with Andrew Dickens about corruption in Brazil ahead of the Rio Games