A PYMNTS Company

Brazil: CADE opens probe into soccer stadium construction cartel

By  |  July 23, 2019
Brazil’s antitrust authority, the Administrative Council for Economic Defense (CADE) has announced a probe to be opened on the possible existence of a cartel affecting the construction and remodeling of the country’s soccer stadiums for the 2014 FIFA World Cup. Seven companies and 36 individuals are thought to be involved, including major construction companies Andrade Gutierrez, Carioca Engenharia, Camargo Correa, OAS, Queiroz Galvao, Delta, Odebrecht Group, and Via Engenharia.”The cartel would have acted, at least, up to mid-2011, when the contracts relating to the public works of the football stadiums for the World Cup were signed,” stated the authority, indicating that the illegal contacts would have likely begun in 2007, intensifying the next year. Suspicions over these contracts would affect 8 of the 12 stadiums used during the sporting event.

CADE also revealed that complementary tenders will be investigated, which could be affected by similar agreements. The case was revealed after construction company Andrade Gutiérrez, one of the largest in the country, came forward and took advantage of the leniency program operated by CADE, revealing information and documents pointing to the illicit agreements.

Full Content: America Economia

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.