BRAZIL: LITTLE OR NO ENFORCEMENT.
Share of World Exports: 1.25 per cent
Foreign Bribery Cases and Investigations There have been no cases in Brazil, though there are four investigations underway, all of them were initiated in 2012. One of the investigations involves Univen Petroquímica Ltda., a Brazilian oil company, suspected of possible bribery of officials of the Bolivian state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). This is allegedly related to an agreement between YPFB and another Bolivian company, IberoAmérica Trading SRL, to trade Univen diesel and oil at prices far more favourable to the companies, which could cost the Bolivian company lost profits.73 The Bolivian Public Prosecution’s Office reportedly originally started an investigation, but they later shelved it due to lack of damage to the country. Thereafter, some documents were sent to the Brazilian Federal Public Prosecution’s Office, which initiated an investigation in Brazil in 2012.74 The Brazilian Federal Public Prosecution’s Office also reported that an investigation commenced in 2012 into possible bribery of Italian health authorities by Tri Technologies and Labcor Laboratórios Ltda. for the sale of defective heart valves in 2002.75 Another investigation, also reported by the Federal Public Prosecution’s Office, is apparently based on an Argentine investigation which has already been terminated76 and concerns the largest construction company in Latin America, Norberto Odebrecht S.A.. It allegedly subcontracted Skanska S.A., Contrera Hermanos and Techint S.A. for the construction of a gas pipeline in Argentina.77 The subject of the fourth investigation, also reported by the Federal Public Prosecution’s Office, is unknown.
Access to Information Official information about corruption cases can be requested based on the Information Access Law #12.527/2011. The General Comptroller’s Office has a comprehensive database containing the information on companies penalised for corruption and also on companies ineligible for other reasons. This information is public and can be accessed through the transparency page of the comptroller’s office’s website.78 Most investigations or criminal processes are handled with judicial secrecy. Therefore, most information is obtained through the media.
Inadequacies in Legal Framework In ratifying the Convention, Brazil included a full chapter on crimes practiced by individuals involving foreign public officials in its Criminal Code.79 The Congress approved a new anti-bribery law (see below) in July 2013 that unfortunately contains some ill-formulated provisions.
Inadequacies in Enforcement System Though there are adequate rules on the interruption of statutes of limitation, cases and investigations in particular can go on for years before conclusion, which often prevents the punishment of those responsible due to expiry of the statutes of limitation. Brazilian authorities lack 73
Information provided by the Brazilian Federal Public Prosecution’s Office. Ibid. 75 Ibid. 76 An Argentine investigation (case nº 18.579/2006) into these allegations was terminated by the National Judicial Branch - Federal Criminal and Correctional Court No. 7. (Certificate provided by the court on 11 July 2013). 77 Brazilian Federal Public Prosecution’s Office’s response (dated 15 March 2013) to expert respondent by filling out a questionnaire on recent investigations; Clarin.com, 27 April 2011, “Indagaron al secretario del Energia por sobreprecios en el caso Skanska” www.clarin.com/politica/Indagaron-secretario-Energia-sobreprecios-Skanska_0_470353027.html; La Republica, 21 May 2007, “El fiscal investiga a 21 funcionarios nacionales vinculados al caso Skanska”, www.diariolarepublica.com.ar/notix/noticia.php?i=124981&f=; La Nacion, 5 May 2008, “Se intesifica la investigación sobre el rol de Enargas en la causa Skanska”, http://www.lanacion.com.ar/1009910-se-intesifica-la-investigacionsobre-el-rol-de-enargas-en-la-causa-skanska. 78 See www.portaltransparencia.gov.br 79 Namely, Chapter II-A of Law 10.467, of June 6, 2002, available at www.planalto.gov.br/ccivil_03/LEIS/2002/L10467.htm#art2 74
22
TRANSPARENCY INTERNATIONAL