CADE, PF, and CGU investigate alleged bid rigging in emergency roadworks

On 8 October, the Administrative Council for Economic Defense (CADE), along with the Federal Police (PF) and the Office of the Comptroller General of Brazil (CGU), launched the operation Anteprojeto to investigate bid rigging in emergency roadworks, promoted by the National Department of Transport Infrastructure (DNIT), in the Brazilian state of Rio Grande do Sul. The case involves companies from the consulting engineering and technical advisory sector, contracted for emergency services on federal highways in 2024.

The investigation started after an analysis carried out by the Anti-Corruption and Financial Crimes Unit of the Federal Police (DELECOR/RS), which identified a coordinated operation by three engineering companies based in Rio Grande do Sul. The conduct allegedly occurred in public procurements held to mitigate the effects of floods that struck the state from April to May 2024.

The companies allegedly colluded before to secure three contracts with DNIT for consulting engineering services to prepare preliminary designs, as well as basic and detailed engineering designs, for federal highways affected by the floods.

The amount of the three contracts exceeds BRL 72 million and was funded with federal resources from extraordinary credits linked to the reconstruction of Rio Grande do Sul.

The investigation

At the moment, nine warrants are conducted in the metropolitan area of Porto Alegre and in Brasília, in the Federal District. There are 15 professionals at CADE working directly with the case, in addition to 51 public servants from PF, and four public servants from CGU.

Evidence of antitrust violation

In their procedures, CADE, the Federal Police, and CGU identified indications of possible violations of the aforementioned procurements. The seized evidence will be analysed to investigate the alleged criminal scheme.

After the discovery phase, the Office of the Superintendent General at CADE will issue a technical opinion and forward the case to the Tribunal of CADE for adjudication. The Tribunal is to decide either for the dismissal of the case or the convition of the defendants, who will be subject to fines ranging from 0.1% to 20% of the gross turnover of the company, group, or conglomerate, from the year prior to the launch of the administrative proceeding, in the field of activity in

which the violation took place. Individuals are subject to fines ranging from BRL 50 thousand to BRL 2 billion.