CADE bags new leniency agreement from Operation Lava Jato

Brazil’s competition enforcer has launched another investigation into the construction sector off the back of Operation Lava Jato, this time examining alleged bid-rigging for major road work in Rio de Janeiro.

The Administrative Council for Economic Defence’s investigative branch yesterday (October, 10) named five construction companies that may have rigged bids for the supply of engineering and construction services to the city of Rio de Janeiro between the end of 2009 and 2014: Carioca Engenharia, Construtora Andrade Gutierrez, Construtora Norberto Odebrecht, Construtora OAS and Construtora Queiroz Galvão.

(…)

Vicente Bagnoli at Vicente Bagnoli Advogados in São Paulo said it is “highly possible” that CADE is in the process of negotiating or has already executed other leniency agreements that are not yet public.

From a macroeconomic perspective, the allegedly rigged bids affecting Rio de Janeiro and Brazil more broadly can explain some of the huge problems faced nowadays that undermine social and economic development, he said.

(…)