Brazil’s antitrust authority CADE has recommended that a court convict 16 companies and 52 individuals over allegations they were involved in forming a cartel to fix bids for public train contracts across the central and southern parts of the country.
CADE said in a statement on Wednesday, December 12, the companies, which include units of Mitsu, Bombardier, and Alstom, could pay up to 20% of their annual gross revenue if convicted, while individuals could pay fines of 50,000 to 2 billion reais (US$13,000 to $514 million).
When it launched the probe in 2014, CADE said the cartel allegedly began in 1998 and its members had divided up tenders between themselves and “pretended there was competition, but had agreed previously on the prices of their bids.”
CADE said the scheme included bids for metro and commuter trains in the cities of Sao Paulo, Brasilia, Porto Alegre, and Belo Horizonte.
CADE’s conclusions add to a list of corruption accusations that Brazilian authorities have levelled against companies across a range of industries in recent years, leading to the downfall of many powerful executives and politicians.
“The evidence collected throughout the investigation allows us to conclude that the companies and their employees interfered with the results of at least 27 projects,” CADE stated.
CADE said among the other companies involved were local units of Balfour Beatty, Construccion y Auxiliar de Ferrocarriles (CAF) and Hyundai-Rotem, part of Hyundai Moto
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