OAS and Andrade break Lava Jato agreements with Cade – 05/24/2023 – Panel SA

Cade (Administrative Council for Economic Defense) canceled, this Wednesday (24), six agreements signed with contractors OAS and Andrade Gutierrez for forming a cartel. Now, they will have to pay BRL 7 million for non-compliance and they will be responding to lawsuits again.

The companies had been investigated by the Lava Jato operation by combining price and market division into six projects.

OAS worked on projects for Petrobras, PAC das Favelas, and on the construction of the Leopoldo Américo Miguez de Mello Research and Development Center (Cenpes).

Andrade Gutierrez was responsible for the construction of airports, railways and also for the Cenpes.

Both were denounced by other construction companies that were part of the cartel, but which, in exchange for immunity from Cade, handed over the entire scheme by signing leniency agreements.

OAS and Andrade confessed to their participation and signed the so-called Conduct Cessation Terms (TCCs) and committed to paying pecuniary contributions.

Recently, companies sought Cade to renegotiate. OAS asked for more time to pay the installments and Andrade, already at the beginning of the Lula government, wanted to discuss the amounts defined and approved by the council. They claimed to be in financial difficulties.

Cade’s technicians, however, analyzing the contractors’ balance sheets, did not see the need for a renegotiation.

About two weeks ago, they officially informed Cade that they had stopped payments. In practice, they assumed non-compliance with the agreement – a situation approved by the court this Wednesday.

As a result, companies will have to pay a further R$7 million in fines for non-compliance and the six processes interrupted under the agreement are now being processed by Cade.

The condemnation, given this new situation, is certain because when they closed the TCCs they confessed to participating in the cartel, according to technicians interviewed by the column on anonymity.

With Diego Felix

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