Brazil: Metro-building cartel affects 8 states, probe finds

Brazilian competition regulator CADE announced today that it has opened an investigation to dismantle a powerful cartel of construction companies accused of illegally rigging several of the tenders held for the construction of the country’s various subway systems over the last 16 years.

The investigation was opened based on the confession of construction company Camargo Correa which, in cooperation agreement with the Justice, admitted to its participation in the cartel and the rigging of at least 21 contracts for the construction of metro and monorail lines, affecting at least 8 different states, including the Federal District of Brasilia.

The CADE, an entity linked to the Ministry of Finance, explained that the investigation was opened based on information provided by executives and former executives of Camargo Correa in a leniency agreement signed with the Prosecutor’s Office. The executives revealed that the cartel acted in at least 21 public tenders between 1998 and 2014 and that it involved 9 of the largest construction companies in Brazil, including Odebrecht, Andrade Gutierrez, OAS and Queiroz Galvao. “It is possible that ten other construction companies have also participated in the pact,” Cade said in its statement, citing some multinationals such as Alston and Siemens.

Full Content: W Radio

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