CGU publishes Conflict of Interests Management Manual

On June 28, 2022, the Brazilian Office of Comptroller-General (“CGU”) published the Conflict of Interests Management Manual, which aims to assist bodies and entities of the federal Executive Branch in the analysis of risks involving conflicts of interest within the scope of consultations and authorization requests, as provided for in Federal Law No. 12,813/2013 (“Conflict of Interests Law”).

The Conflict of Interests Law provides for (i) situations that constitute conflict of interests involving holders of public office or employment in the federal Executive Branch, (ii) subsequent impediments after the performance of such public office or employment, as well as (iii) the appropriate powers for monitoring and evaluation of such conflicts.

Among the situations provided for in the Conflict of Interests Law, we highlight cases in which a government agent that, while incumbent of the public office or employment, provides services to a company controlled, supervised, or regulated by the entity to which he is associated. In this regard, it is important to highlight that, according to the Conflict of Interests Law, acting in a way that constitutes a conflict of interest may be deemed an improbity act, according to Federal Law No. 8,429/1992 (Administrative Improbity Law).

If there is any doubt as to a potential conflict of interest, or if there is intention to carry out a private activity in parallel with the mandate of a public office or employment, the government agent must consult or request authorization through the Electronic System for Prevention of Conflict of Interest (“SeCI”), an electronic tool developed by the CGU that was launched in July 2014.

Accordingly, the Conflict of Interests Management Manual:

  • provides guidelines to assist bodies and entities on how to analyze consultations and authorization requests;
  • comments on cases that could constitute conflicts, provided for in the Conflict of Interests Law;
  • introduces a systematic conflict of interest analysis of risks along with key questions that can guide the work of analysts;
  • provides for the need to protect the requesting individual’s personal data; and
  • provides guidelines on the drafting of summaries.

Finally, although the new Manual is designed for government agents listed in article 2 of the Conflict of Interests Law and other government agents within the scope of the Federal Executive Branch, it can also be of assistance or a basis for analyzing the matter within other spheres.

Demarest’s Compliance and Public and Regulatory Law teams are available to provide any further clarifications necessary.