CADE And CGU Establish Partnership Against Transnational Bribery

Author:Mr Eduardo Gaban, Natali de Vicente Santos, Bruno Magalhães, Fernanda Martino, Fernanda Calmon and Barbara Luvizotto
Profession:Tauil & Chequer
 
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The Administrative Council for Economic Defense ("CADE") and the Ministry of Transparency and the Office of the Comptroller General ("CGU") have entered into a partnership to combat transnational bribery, according to Joint Ordinance No. 4/2018, published in the Brazilian Official Gazette on June 1, 2018 ("Ordinance").

The partnership was established in view of the fact that CADE is responsible for ensuring free competition and the promotion of a competitive culture, while CGU is the entity liable for investigating illicit conduct as set forth by Law 12.846/2013 - the Brazilian Anticorruption Law.

The Ordinance mandates the process of exchanging information and documents between CADE and CGU concerning the practice of irregular activities abroad by Brazilian or foreign companies that have their headquarters, branch or representative office in Brazil.

Transnational bribery is defined in Article 2 of the Ordinance as the "offer, promise or payment of pecuniary benefit or any other undue advantage, directly or by means of an intermediate party, by a Brazilian or foreign company, with headquarters, branch or representative office  in Brazil, to a foreign public official, in order to obtain an advantage that will damage the foreign public administration".

The partnership stipulates that CADE must inform CGU about the practice of transnational bribery by Brazilian or foreign companies with headquarters, branch or representative office in Brazil, while CGU should inform CADE of any anti-competitive practices related to the company investigated.

The Ordinance ensures that the documents and information exchanged between CADE and CGU must be kept confidential, as provided for by law.

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