Brazil: CADE fines 11 companies over subway trains cartel

Brazil’s Administrative Council of Economic Defense (CADE) has issued fines against 11 companies on Monday, July 8, as well as against 48 individuals involved in a cartel for fixing public tenders for the purchase of subway trains and carriages. The total fines applied by the CADE court amount to R$515.6 million (USD $135 million approximately).

Coupled with this, CADE has also decided to prohibit the company Alstom Brasil Energia – accused of being the leader of the cartel – from participating in future tenders for a period of five years. CADE also issued a recommendation to government bodies that Alstom, Bombardier Transportation Brazil and CAF Brazil Indústria e Comércio should not benefit from subsidy programs or tax breaks for a period of five years.

The cartel was revealed thanks to information obtained through a leniency agreement between CADE and German multinational Siemens. The cartel is accused of affecting bids in at least 26 projects in the states of Sao Paulo, Minas Gerais, Rio Grande do Sul, and the Federal District.

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