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Legal Update

Brazil: Espírito Santo State Government punishes two other companies based on the Clean Companies Act

3 May 2017
Tauil & Chequer Legal Update

The Espírito Santo State Control and Transparency Office, in a decision published on April 27, 2017, has sentenced two other companies for illicit acts against the Public Administration based on Federal Law No. 12.846/2013. In this case, the companies were punished for jointly defrauding  the competitiveness of a public bid proceeding.

According to the decision, both companies, which have the same shareholders, presented their proposals in an electronic bid using the same IP address, thus acting in the bidding  procedure as one single entity in the regulator view.

Fines in the amount of BRL162,663.62 (one hundred and sixty two thousand six hundred and sixty-three reais and sixty-two centavos) and BRL3,278.25 (three thousand two hundred and seventy eight reais and twenty five centavos), corresponding to 2% of each of the companies’ gross revenue in 2015. The publication of the decision in four different media resources was also determined.

Observations in this update about Brazilian law are by Tauil & Chequer Advogados and are not intended to provide legal advice. Any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.

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