CADE convicts a cartel in government procurement for school uniforms and material kits

In the hearing of this Wednesday (16 June), the Administrative Council for Economic Defense (CADE) convicted six companies and 12 individuals for bid rigging practices in government procurements aimed at the acquisition of school uniforms and material kits for public school students. The fines applied correspond to over BRL 97.4 million.

According to the investigation, the cartel conduct occurred from 2007 through 2012 in different Brazilian states, such as São Paulo, Rio de Janeiro, Santa Catarina and Goiás. The main evidence of the anticompetitive conduct was collected through search and seizure operations legally authorised and carried out in September 2012 at the headquarters of the involved firms.

CADE observed that the involved parties held a permanent contact aiming at fixing prices and setting advantages in procurements to divide the market, including subcontracting, as well as defining in advance the winning bidders; thus, harming free competition and public spending. The employment of such strategies included the submission of cover bids and bid suppressions to the procurements.

In addition to 12 individuals, the Tribunal of CADE convicted the following firms for the anticompetitive conduct: Attendy Artigos de Vestuário e Confecções; Capricórnio; Diana Paolucci; Mercosul Comercial e Industrial; Excel 3000 Materiais e Serviços; and Nilcatex Têxtil Ltda.

Access the Administrative Proceeding no. 08700.008612/2012-15.