CADE signs agreements on a cartel investigation in government procurements for the renewal of urban lagoons and flood containment in the State of Rio de Janeiro
Cease and Desist Agreement
In the hearing session of this Wednesday (9 December), the Administrative Council for Economic Defense (CADE) ratified three Cease and Desist Agreements (TCC in its acronym in Portuguese) with firms and individuals investigated in an administrative investigation that analyse, within the Operation Car Wash, an alleged cartel in government procurements held by the Secretariat of the Environment of the State of Rio de Janeiro (SEA/RJ). Together, the parties will pay a financial contribution of BRL 61 million.
The procurements concerned public works for the environmental recovery and renewal of urban lagoons and river flood containment and control, which included engineering, dredging, and dam and seawall construction services.
The first agreement was signed with the building firm Construtora Norberto Odebrecht and other two individuals related to the firm. The established amount for the financial contribution sums BRL 9,638,095.46. The firm Carioca Christiani-Nielsen Engenharia and three of its employees signed the second agreement and together will pay the amount of BRL 5,419,252.41. Lastly, the third agreement was signed with the firm Construtora OAS and two individuals. The total amount of their financial contribution reaches BRL 46,001,585.75.
By signing the agreements, the signatories also admit their participation on the investigated conduct and commit to cease their involvement with the practice, in addition to effectively cooperate with CADE's investigation. Furthermore, the agreements suspend the case as to the committing parties until declared full compliance with the defined commitments.
The case is under CADE's investigation since 2013, when the agency initiated a confidential investigation to analyse the statements reported in an article of the magazine Época in July 2013. The article indicated overprice evidence in, at least, the public procurements of Lagoon Complex (National Request for Proposals CO SEA 01/2013) and Flood Mitigation in the North and Northwest of the State of Rio de Janeiro (National Request for Proposals CO SEA 03/2012).
In June 2017, the General Superintendence of CADE signed a partial leniency agreement with the firm Andrade Gutierrez Engenharia and with current and ex-executives of the firm for obtaining information and documents that could contribute to the cartel investigation and identify all participants in the conduct.
The information and documents presented by the TCC agreements signed with CADE will now be analysed along with the partial leniency agreement, which can result in an administrative proceeding for imposing penalties for economic crimes.
Access the Administrative Investigation 08700.007277/2013-00.