Brazil: Mendes Júnior construction firm declared disreputable

Involved in Operation Car Wash, the firm is prohibited from signing

Published on 28/04/2016 - 16:08 By Michelle Cannes reports from Agência Brasil - Brasília

The Comptroller-General Office (CGU) declared that the Mendes Júnior construction firm is disreputable. With the decision, the construction firm is prohibited from signing new contracts with the Public Administration for at least two years. The measure, signed by the Minister Luiz Navarro, was published Thursday (Apr. 28) in the Official Gazette.

The decision imposes the first penalty on one of the firms involved in Operation Car Wash and has been taken at the conclusion of the Accountability Administrative Procedures (PAR) against the construction firm.

According to the CGU, the charge was based on two different irregularities. The first is that the Mendes Júnior agreed with the bidding competitors that each company should win a contract. The second irregularity was the evidences that the construction company was not reputable to sign contracts with the government. "This irregularity was evidenced by the payment of kickbacks to public agents, in order to ensure continuity of anticompetitive practices," read the text published on the CGU website on the decision. Irregularities occurred between 2004 and 2012.

To support their argument, the CGU heard even currency dealer Alberto Youssef and former Petrobras CEO Paulo Roberto Costa, who agreed to a plea bargain under Operation Car Wash.


Translated by Amarílis Anchieta


Fonte: Brazil: Mendes Júnior construction firm declared disreputable

Edition: Graça Adjuto / Nira Foster

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