CADE convicts cartel in procurements for bin bags

In the hearing of 13 September, the Administrative Council for Economic Defense (CADE) convicted seven companies and fifteen individuals for cartel in public procurements for bin bags. The Tribunal imposed fines amounting to BRL 14.5 million.

The scrutiny started with the documents forwarded to CADE by the special group to fight against organised crime of the Prosecution Services of the State of São Paulo  in the "Operation Colludium". The special task force tapped telephones and conducted search and seizure operations in the headquarters of some companies.

According to the rapporteur of the case, Commissioner Sérgio Ravagnani, evidence shows that the parties involved in the conduct often communicated with each other. They aimed to fix prices and to combine conditions in public procurements to restrict the competition.

It was proved that the cartel members engaged in a bid rotation scheme, in which they took turns submitting winning proposals  for each procurement. The anticompetitive conduct occurred from 2008 to 2014 and affected many municipalities in the Brazilian states of São Paulo, Minas Gerais, Paraná, Mato Grosso, and Mato Grosso do Sul.

Penalties  

The Tribunal of CADE convicted the companies to pay fines of BRL 11.5 million. The convicted individuals are to pay fines of amounting to BRL 3 million.

The Tribunal of CADE also prohibited the companies from participating in procurements or contracting with the Federal, State, or Local Governments, the Government of the Federal District for five years. In addition, the wrongdoers are to publish at their own expense the summary of the judgement of conviction in the newspapers “O Estado de São Paulo” and “Gazeta do Povo”, in half a page, for two consecutive days of two consecutive weeks.  

 Access Case nº 08700.005789/2015-02.