First global leniency agreement on Brazil’s Operation Car Wash12/07/2019
Por: André I. Fonseca
On June 25th 2019, the Federal Comptroller-General´s Office (CGU), along with the Federal Solicitor-General’s Office (AGU), the Federal District Attorney´s Office (MPF) and the US Department of Justice (DoJ), announced the first “global” leniency agreement on an investigation related to Operation Car Wash.
As a result of a multilateral international negotiation, Technip and Flexibras are going to pay R$ 1,1 billion (US$ 296 million), from which R$ 819.794.768,79 (US$ 214.331.033,17) will be paid in Brazil and destined to Petrobras.
Brazilian leniency agreement is set forth in article 16 of the Anti-corruption Law and is directed to legal entities that wish to voluntarily disclose misconducts, present evidence and information regarding other parties involved in the wrongdoings, and also agree to the imposition of a fine and compensation for the damages caused.
The simultaneous negotiation of a leniency agreement with several Brazilian agencies (MPF, AGU and CGU) is due to the fact that legal entities investigated for bribery schemes might be liable on different counts and jurisdictions, for acts against the Public Administration set forth on Anti-Corruption Law (Law 12.846/13), or acts punishable by the Misconduct Act (Law 8.429/92), and Federal Procurement Law (Law 8666/93).
The agreement with Technip and Flexibras establishes the payment of R$ 630.611.360,61 as compensation and disgorgement, and R$ 189.183.408,18 as a fine attributed by the Misconduct Act (Law 8.429/92).
The Federal District Attorney´s Office informed the amount will be paid on three installments within two years, and that the company has committed to implementing and improving its compliance, ethics and integrity programs, presenting annual reports to the MPF and the CGU.
It is important to note that, in case of noncompliance with the agreement, the company may lose the agreed benefits, and be submitted to early execution of the debt, among other penalties.
This news reinforces the importance of maintaining an effective corporate integrity program, and stresses the international cooperation on anti-corruption matters, as well as on the efforts to ensure judicial security for companies submitted to negotiations with several public agencies at the same time.
Felsberg’s White-Collar Crimes, Corporate Investigations and Compliance Department is available to assist on compliance consulting services and related issues, to represent clients before government agencies in connection to audits, inspections and investigative procedures, as well as in providing any additional information. If you have any questions, please contact André Fonseca (firstname.lastname@example.org).
WHITE-COLLAR CRIME, CORPORATE INVESTIGATIONS AND COMPLIANCE
This article is intended exclusively to provide information and does not contain any opinion, recommendation or legal advice from Felsberg Advogados in relation to the issues addressed.