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Operation Car Wash: CADE signs an agreement with the Andrade Gutierrez company in an investigation of cartel in port works

Cease and Desist Agreement

The company and its employees have confessed their participation in the violation, and after deciding to cooperate with the investigations, have pledged to make contributions amounting to BRL 8.2 million
published: Apr 22, 2020 12:00 AM last modified: May 07, 2020 09:46 PM
by International Unit

In the judgment session that happened this past Wednesday (15 April), the Administrative Council for Economic Defense (CADE) approved a Cease and Desist Agreement (TCC) with the construction company Andrade Gutierrez and two of its employees. The agreement was signed as part of an investigation related to Operation Car Wash, which assesses an alleged cartel in the market of engineering services for construction, expansion and renovation of public ports and waterway terminals in Brazil.

This was the first Cease and Desist Agreement signed in this investigation. With the agreement, Andrade Gutierrez and its employees confessed to the wrongful behavior and pledged to cease their participation in it and effectively cooperate with the investigations. Moreover, the signatories assumed the obligation of making a financial contribution to the Fund for De Facto Joint Rights (Fundo de Direito Difusos) amounting to BRL 8,211,645.78.

The agreement stops the investigation on the parties until the aforementioned obligations are fulfilled. The benefits to the company and individuals that have signed Cease and Desist Agreements are restricted to administrative proceedings carried out at CADE and do not affect criminal proceedings nor benefit the parties in the criminal sphere.

CADE's president, Alexandre Barreto, has stressed that the approved agreement meets all legal requirements and 'basic premises of sufficiency for the purposes of ceasing the anticompetitive practice and strengthening the dissuasive aspect of the measures taken by CADE to supervise and sanction misconducts.' 

Administrative Investigation

CADE is carrying out an investigation of a possible cartel in government contracts for the provision of engineering services of construction, expansion and renovation of ports and waterway terminals. The administrative proceedings were launched with the signing of Leniency Agreement 11/2016.

The information and documents that accompanied the Cease and Desist Agreement signed will now be analysed together with the Leniency Agreement. This may result in new Administrative Proceedings to impose administrative sanctions for violations against the economic order, as per the provisions of Law 12529/2011.

 Access the Administrative Proceedings 08700.008352/2016-01.