CADE, Federal Police and Comptroller General carry out dawn raid against alleged cartel in the state of Pernambuco
The General Superintendence of the Administrative Council for Economic Defense – CADE and the Office of Comptroller General – CGU carried, on 10 December 2014, the Invictus Operation, coordinated by the Federal Police of the state of Pernambuco, aiming at disarticulating an alleged cartel in public procurement.
The evidence indicate that businessmen in the markets of books and stationery would have formed a cartel to fix prices and determine the winners of public procurements held in several municipalities of the state of Pernambuco. The bids were mainly related to educational and welfare programs carried by the federal government.
Fifteen search warrants and eight subpoenas are being executed. The operation is supported by 84 federal policemen, eleven CADE servants and eight servants of the CGU. The dawn raids are being carried in the cities of Recife, Olinda, Tamandaré, Macaparana, Bonito, Floresta, and Tacaratu.
The investigations began in 2011 after complaints of the Federal Prosecutor’s Office, which asked the Federal Police to open an investigation to verify the irregularities. Through examinations, it was verified an overprice of 5% to 88% in the contracts analyzed up to the moment.
The businessmen involved in the conducts are being charged for cartel formation, bid rigging, misappropriation of public funds, and criminal association. In regards to CADE’s activities, the companies and individuals involved will be investigated specifically for cartel formation.