Tag: Anti-Corruption Law

Anti-Corruption Movements

Anti-corruption law is amended to facilitate agreements

The Federal Government published in the Federal Official Gazette of 21/12/2015, the Provisional Measure 703, amending the Law 12.846/ 2013, which makes administrative and civil liability of legal entities for the practice of acts harmful to public administration. The MP 703 aims to facilitate the so-called leniency agreement.

Among the amendments to the Law, the MP provides that legal entities that enter into the leniency agreement may continue to participate in bids and contracts with the public administration if they comply with penalties and other legal conditions. In the event that the legal entity is the first to sign the leniency agreement on the investigated acts and facts, the reduction of fines provided for in the Law may reach its complete remission, with no other financial penalty resulting from the specified infractions being applicable. in the agreement.

To access the full text of MP 703 - Click here

 

How to have an effective integrity program

A Anti-Corruption Law is already in effect and applies to all companies.

Experts highlight the importance of adopting Integrity Programs or compliance, which reinforce the company's intention to act in accordance with the rules.

And they also provide guidance: training and communicating employees about the company's code of conduct, as well as the implications of non-compliance, is essential.

For more information, watch the Integrity video, an initiative by the ETCO Institute, which aims to contribute to the dissemination of Compliance in Brazil.

Anti-Corruption Law cannot trample constitutional public freedoms

Vehicle: Revista Consultor Jurídico
Author (s): Hamilton Dias de Souza

It is easy to see that the country's moment is delicate. Just read the newspapers or chat informally with anyone. Economic problems exist, as demonstrated by the devaluation of the real, the increase in unemployment, low productivity and the commented loss of investment grade in the country and in several national companies. However, one cannot confuse the effects to cause, as these problems result from more serious anomalies. It is not a matter of simple financial or monetary difficulties, but of serious legitimacy crisis state-owned, fruit of mistrust in relations between political and economic power, fueled by scandalous cases of corruption.

Source: Advocacia Dias de Souza

To read the article straight from the source, click here.

Change in the Anti-Corruption Law wants to exempt companies from fine

The proposal with changes in the Anti-Corruption Law discussed between members of the Chamber and the government summit provides for the possibility of total exemption from the payment of fines by corrupt companies that sign a leniency agreement. This forecast is part of an amendment inserted last week to the bill that is being processed by the Constitution and Justice Commission of the House and establishes changes in the law sanctioned two years ago.

Source: Estadão website (15/08)

 

To read the complete article, click here.

CGU defines mitigating criteria in Anticorruption Law

Fight against corruption

To reduce the penalty, the Compliance program needs to prove its effectiveness; in investigations involving several companies, the first to collaborate will benefit from a leniency agreement

 

The Anticorruption Law (12.846, of 2013) and the Decree that regulated it (8.420 / 2015) defined the mitigations that must be taken into account when punishing companies convicted of corruption against companies or public bodies. Among the most important are the existence of an integrity program (compliance) and collaboration with investigations (leniency agreement). The Federal Comptroller General (CGU) has now established rules that detail these mechanisms. Ordinances 909 and 910 were published on April 8 in the Federal Official Gazette.

To be taken into account, companies will have to prove that their integrity programs already existed at the time of the harmful act and were effective. If compliance be considered “purely formal” and “absolutely ineffective”, its existence will have no effect on reducing penalties. To demonstrate effectiveness, companies will have to submit two reports: one on the company's relationship with public agencies and the other explaining the instruments of the integrity program.

In the first document, you will need to inform, for example, the contracts signed with government agencies and companies in the last three years and the frequency of contacts with public agents or their representatives. The second report should show how the training program works. compliance and include documents proving your activities, such as email history, audios and meeting minutes. It is also necessary to prove how the integrity program helped to reduce the damage in the investigated act itself. These rules are in addition to those that had already been listed by Decree 8.420, such as the number of training sessions and information on donations to political parties.

Leniency agreement

The CGU also detailed the process for the signing of the leniency agreement, which reduces the conviction of companies that take the blame and present documents, testimonies and other information to help clarify the case. The interested company must send a proposal for an agreement to the CGU Executive Secretariat, which will then create a commission with at least two servers to continue the process. The negotiations must take place in secrecy and, until the final document is signed, the company can withdraw at any time. CGU has the prerogative to reject the agreement, if it does not consider the collaboration relevant. In cases involving more than one company, being the first one willing to collaborate will have a special value in the Controllership's decision.

In addition to the ordinances, CGU also published two normative instructions with criteria for punishing the company. One of them determines how the corporation's gross revenue will be considered, which serves as the basis for calculating the fine. The definition will occur according to your tax profile. The other regulates the registration of information about the convicted company in the National Register of Unlawful and Suspended Expenses (CEIS) and in the National Register of Punished Companies (CNEP) by public bodies.

 

 

Seminar: TCU's role in fighting corruption and the legal consequences of the Anti-Corruption Law

Produced by:: IBEJI - Brazilian Institute of Legal Studies on Infrastructure

Confirmed presence: Hon. Mr. Bruno Dantas, Minister of the Federal Court of Accounts

Data: 17 / 04 / 2015

Timetable: 9:30 am to 12:30 pm

Location: Mackenzie University (Rua da Consolação, 896 - Mezzanine, São Paulo - SP)

Registration by email: contato@ibeji.org.br

 

 

Entities demand urgency in the regulation of the Clean Company Law

Six of the most influential civil society organizations in the country signed and sent a letter to the Presidency of the Republic addressing the importance of the federal regulatory decree of the Clean Company Law, which holds corporations accountable for corruption.
In the document, the signatories recognize the advances made in the public administration's integrity system in recent years, with the approval of the Clean Company Law (LEL) being one of the most important milestones in this process. However, the organizations warn that LEL needs to be regulated, so as not to leave legal loopholes that make it difficult, for example, to impose fines, adopt compliance by companies and enter into leniency agreements.
At the end of the letter, the entities also affirm that the promulgation of the decree will “unequivocally communicate to society and the market that the Presidency of the Republic gives fundamental relevance to the most important phase of any law: its effective implementation”.

 

This is the full text of the letter:
São Paulo, January 28, 2015.
To Her Excellency Dilma Rousseff,
President of the Federative Republic of Brazil
Ref. Regulation of Law No. 12.846 / 2013
Your Excellency, President of the Republic,
Our organizations, in a collaborative way, come through this letter to reinforce the importance of the federal regulation of Law nº 12.846 / 2013, the so-called Clean Company Law, which holds legal entities responsible for acts of corruption.
We recognize that Brazil has made great progress in recent years in improving its integrity system, which prevents and combats corruption. As an example, we can mention the creation of the Federal Comptroller General and the enactment of the laws on Transparency Portals, the Clean Record and Access to Information.
The approval of the Clean Company Law, which holds corporations accountable for acts of corruption, was another milestone in this process. However, since the entry into force on January 29, 2014, the law has not yet been regulated by the Presidency of the Republic, which is essential to avoid leaving legal gaps that hinder its implementation, due to the following aspects:
• Clarify the parameters that will be used to assess the effectiveness of companies' compliance programs. This item is essential because it can be a mitigating factor or an aggravating factor for the application of fines to the companies responsible.
• Define the responsibilities of each federative entity, and of their respective public agents, in establishing investigative and administrative processes, as well as the approach that will be taken at the state and municipal levels.
• Define the parameters for entering into leniency agreements, considering the involvement of all competent authorities, to avoid situations in which one authority does not honor the leniency of another.
• Communicate, unequivocally, to society and the market the relevance it gives to the most important phase of any new law: its effective implementation.
For our part, we will continue on our mission to promote the improvement of the national integrity system and to stimulate changes in business behavior towards transparency, integrity and the fight against corruption.

Best Regards,
BM & FBOVESPA - Edemir Pinto (Chief Executive Officer)
Brazilian Business Council for Sustainable Development (CEBDS) - Marina Grossi (President)
Brazilian Institute of Competitive Ethics (Etco) - Evandro Guimarães (Executive President)
Ethos Institute of Business and Social Responsibility - Jorge Abrahão (Chief Executive Officer)
Group of Foundations and Companies Institutes (GIFE) - André Degenszajn (Secretary-General)
Brazilian Institute of Corporate Governance (IBGC) - Heloisa Bedicks (General Superintendent)