Compliance and Investigations Newsletter no 8 – August 2022

[vc_row][vc_column][vc_column_text]The Compliance and Investigations Newsletter aims to provide information on the main media news, trends, cases and legislation concerning compliance matters, in Brazil and abroad. This material is for informational purposes and should not be used for decision making. Specific legal advice can be provided by our lawyers.

Enjoy your reading!

Compliance and Investigations Team[/vc_column_text][vc_empty_space height=”50px”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Lava Jato prosecutors sentenced by the TCU to pay BRL 2.8 million due to travel and accommodation expenses

Prosecutors linked to the Lava Jato Operation were unanimously sentenced on August 09, 2022, by the 2^nd Chamber of the Brazilian Federal Audit Court (“TCU”), to reimburse the public treasury as a result of irregularities in the receipt of travel and accommodation expenses from 2014 to 2021.

The TCU found that there was “disproportionate” and “uneconomical” payment of such expenses.

Among those involved, former prosecutor of the Brazilian Federal Prosecution Office (MPF), Deltan Dallagnol, who led Operation Lava Jato in the city of Curitiba, and former Brazilian Federal Prosecutor General (PGR), Rodrigo Janot, must reimburse BRL 2.8 million to the public treasury and pay a fine of BRL 200.000,00 each. João Vicente Beraldo Romão, the chief prosecutor of the Prosecutor General’s Office in Paraná, was also sentenced to pay a fine in the same amount and reimburse travel and accommodation expenses.

For more information, access the CNN Brasil article here.[/vc_column_text][vc_empty_space height=”50px”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

CGU imposes fine of BRL 86.3 million on Vale in Brumadinho dam case

The Brazilian Office of the Comptroller General (“CGU”) imposed a BRL 86.3 million fine on Vale in an Administrative Liability Proceeding.

According to the CGU, Vale failed to submit reliable information to the Brazilian National Mining Agency (“ANM”) system regarding Dam I, located in Brumadinho, Minas Gerais.

The CGU took into consideration that Vale issued a positive Stability Condition Statement concerning the aforementioned dam for the period from June to September 2018, whereas, in the CGU’s view, such statement should have been negative. These circumstances allegedly constitute a harmful act before the Government as it hindered the inspection capabilities of the ANM.

For more information, access  Revista Exame article here.[/vc_column_text][vc_empty_space height=”50px”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

STF rules that Improbity Law is not retroactive in unappealable decisions

The Brazilian Supreme Court (“STF”) ruled on August 18, 2022, that Law No. 14,230/2021, which amended provisions in the Administrative Improbity Law (Law No. 8,429/1992), must not date back for cases in which there has been a conviction.

However, the new legislation must be applied to ongoing cases that discuss the culpable liability modality of administrative improbity acts, which ceased to exist with the advent of the new law. Furthermore, the new statutory period of eight years and the intervening limitation of action of four years are also not retroactive, including for ongoing proceedings.

There are 1,147 suspended lawsuits awaiting the decision of the STF, subsequent to which, the parties involved in ongoing proceedings that address the culpable liability modality of administrative improbity acts can request a review of their cases.

For more information, access the JOTA article here.[/vc_column_text][vc_empty_space height=”50px”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

CGU fines company cited in the Mullen Lowe Leniency Agreement

The Brazilian Office of the Comptroller General (“CGU”) imposed a BRL 1.1 million fine on film production company, Conspiração Filmes, in addition to declaring the company’s unsuitability to bid or contract with the Federal Government.

According to information reported in the Mullen Lowe (formerly Borghi Lowe) leniency agreement, Conspiração Filmes made payments to shell company accounts, in order to enable the payment of undue advantages to André Vargas, former vice-president of the House of Representatives, appointed as perpetrator of a corruption scheme involving Caixa Econômica Federal.

For more information, access the Revista Veja article here.[/vc_column_text][vc_empty_space height=”50px”][/vc_column][/vc_row]