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CADE signs an agreement on a cartel investigation in the procurement of the program Patrulha do Campo in the state of Paraná


Firms and executives committed to pay financial contributions that sum BRL 3.4 million
published: Dec 11, 2020 09:41 AM last modified: Dec 11, 2020 09:41 AM
by International Unit

In the hearing session of this Wednesday (9 December), the Administrative Council for Economic Defense (CADE) ratified a Cease and Desist Agreement (TCC in its acronym in Portuguese) with the building firm J Malucelli and two of its executives. The agreement was signed within the scope of an administrative proceeding that investigates an alleged cartel in government procurement involving the rental of equipment and vehicles for maintenance, adjustment and improvements on rural roads of the state of Paraná, within the scope of the program Patrulha do Campo.

This TCC has been the first agreement signed in this investigation. By signing the agreement, the firm J Malucelli and the two individuals 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 signatories commit themselves to pay a financial contribution on the total amount of BRL 3,417,808.38 to the Federal Fund for De Facto Joint Rights (FDD).

The investigation, derived from the Operation Rádio Patrulha, is a result of the leniency agreement signed with the firm Ouro Verde. The agreement has been signed with CADE and the Prosecution Services of the State of Paraná last August. The firms under investigations are Bueno Engenharia e Construção, Cotrans Locação de Veículos, Delta Construções, J. Malucelli Equipamentos, Ouro Verde Locação e Serviço, Paviservice Engenharia e Serviços and Terra Brasil Terraplanagem, in addition to individuals related to them.

According to the signatories of the leniency agreement, the anticompetitive conducts occurred between 2011 and 2014, due to contracts agreed by representatives of these firms. The conduct aimed at reducing the competition in government procurements held by the State Secretariat of Logistics and Infrastructure and the State Road Department of the State of Paraná.

If convicted, the firms may pay fines up to 20% of their turnover. Individuals are subject to fines ranging from BRL 50 thousand and BRL 2 billion.

Access the Administrative Proceedings 08700.004248/2019-82.