CADE condemns cartel in bid for favela upgrading in Rio de Janeiro

Summary:

On April 17th, the Administrative Council for Economic Defense (Cade) condemned the companies Queiroz Galvu00e3o, OAS, and Delta Construu00e7u00f5es, as well as two individuals, for forming a cartel in a public bidding process. The case relates to the National Concourse nu00ba 002/2007/SEOBRAS/MCIDADES/CAIXA, which aimed to contract engineering and construction services for the urbanization of the Complexo do Alemu00e3o, Complexo de Manguinhos, and Comunidade da Rocinha in Rio de Janeiro. The investigation began in 2016 after an agreement between the Cade and the Federal Public Ministry in Rio de Janeiro, and the companies were found to have fixed prices, divided the market, and exchanged confidential information to disrupt the competitive nature of the bidding process. The companies were sentenced to fines exceeding R$ 20 million, while the two individuals were fined a total of R$ 842,000.