anti-corruption measures in brazil

Office of the Comptroller General of Brazil

ANTI-CORRUPTION MEASURES IN BRAZIL

Brussels, Belgium 27- 28 May 2009

Jorge Hage

Minister of State, Head of the Office of theComptroller General of Brazil

Enhancing the public-private collaboration


Anti-Corruption Legislation in Brazil

Constitutional provisions: Article 74: Establishes the duties of internal control in the three Branches Article 129: Prescribes competencies of the Public Prosecutor’s Office Article 37, XXII: Establishes the penalties for acts of official misconduct in

the Public Administration Articles 85 and 86: Responsability crimes committed by the President of

the Republic.

Penal Code, which includes: Active corruption of domestic officials (art. 333), Passive corruption of domestic officials (art. 317), Active bribery in international business transaction (art. 337 - B); Traffic of influence in international business transaction (art. 337 – C).


Money Laundering (Law 9.613/98)

Official Misconduct Law (Law 8.429/92)

Public Procurement Law (8.666/93)

Violations against the economic order (Law 8.884/94)

Executive Power Internal Control Law (Law 10.180/2001)

Office of the Comptroller General of Brazil Law (Law 10.683/2003)

Brazilian Court of Accounts Law (8.443/1992)

Law 1,079/1950 – Responsibility crimes procedural law


Law on the Liability of Mayors and City Council Members(Decree-Law 201/1967)

Attorney General Office’s Organic Law (Complementary Law 73/93)

Public Prosecutor’s Office Organic Law (Complementary Law 75/1993)

Law on the obligation to report assets and income in theExecutive, Legislative and Judiciary (Law 8,730/1993)

Law on prevention and repression of criminal organizations’activities (law 9,034/1995)

Phone communication interception law (Law 9,074/1995)

Administrative procedure for the Federal Public Administration(Law 9,784/1999)


Public service corporations regulation Law (Law 8,987/1995)

Victims and Witnesses Protection Federal Program Law (Law 9,807/1999)

Fiscal Responsibility Law (Complementary Law 101/2000)

Crimes against Public Finances (Law 10,028/2000)

Law on the secrecy of Financial Institutions operations (Law 105/2001)

E-procurement system Law (Law 10,520/2002)

Regulation on Politically Exposed Persons (Circular 3,339/2006 of the Central Bank)


Initiatives to improve the legal frameworkon the fight against corruption

Bill on Liability of Legal Persons for Acts of Corruption:

Civil and Administrative liability for acts of corruption committed by legal persons against the national and international administration.

Liability of legal person maintained regardless of the prosecution or conviction of natural persons.

Liability of legal person maintained regardless of incorporation, transformation or merger.

Sanctions: fines; suspension of activities; revocation of operating privileges; prohibition on participation in public procurement bids and contracting with Public Agencies; prohibition on official financing; dissolution.


Criminalization of illegal enrichment (bill sent to the National Congress on June, 2005)

Conflicts of interests (bill sent to the National Congress on October, 2006)

Bill on access to information (bill sent to the National Congress in May 2009)

Civil Servant Asset Investigations (Executive Order)

Control of resource transfers (Executive Order)

Tackling Nepotism (cronyism)

Regulation of Lobbying


Federal Agencies Federal Agencies responsibleresponsible forforcombatingcombating corruptioncorruption in in BrazilBrazil

• The Office of the Comptroller General of Brazil

• The Federal Police Department - Ministry of Justice

• The Federal Public Prosecutor’s Office

• The Financial Activities Control Council – Brazil’s Financial Intelligence Unit

• The Federal Court of Accounts

• The Office of the Attorney General

• The Federal Revenue Secretariat

• The Department of Assets Recovery and International Cooperation


- Referral of audit results to the agencies with responsibility for enforcement of the applicable sanctions

- Disciplinary Actions

- Corruption Prevention

The CGU, as the Internal Audit Unit and theas the Internal Audit Unit and theAntiAnti--Corruption Agency of the Brazilian FederalCorruption Agency of the Brazilian FederalGovernment,Government, implements the following actions:

-- Internal ControlInternal ControlManagement Advice

Auditing


Simplified Organization Chart – CGU

Comptroller General

Executive Secretariat

Federal Internal Control

Secretariat

Corruption Prevention

and Strategic Information Secretariat

Disciplinary Board

Office of the Ombudsman

26 Regional Units

Public Transparency Parity Council


CGU

JudiciaryBranch

Criminal Lawsuits

Management advice and Administrative

Sanctions

Office of the Federal Public

Prosecutor

Federal Attorney's

Office

Brazilian Court of Accounts

Federal Departments

Civil Lawsuits

Disciplinary Board

DisciplinarySanctions

Follow up of the results of the Audits

Federal Revenue Service

AdministrativeSanctions (External

Control)

Political ControlCongress


• Increased Transparency • E-procurement system• Online monitoring of public expenditure • List of Ineligible Firms - CEIS• Incentive to Social Control• Education for Ethics and Citizenship• Implementation of International Conventions• Public - Private Cooperation Against Corruption

Main Prevention Measures


The Transparency Portal provides information on:

• Resources applied directly by the federal departments

• Federal resources transferred from the Federal level to the states, municipalities and Federal District.

• Federal resources transferred directly to the citizen.

• Transactions on the Federal Government's Payment Card.

TRANSPARENCY INITIATIVES

Office of the Comptroller General of BrazilTransparency Portal

Transfers

Direct Spending

Punished Firms

Budget year

By state/county

Spending category

Transfers to citizens


Transparency Portal in Numbers:Transparency Portal in Numbers:

Amount displayedAmount displayed

InformationInformation

Over US$ Over US$ 33 trilliontrillion

782,130,780 entries782,130,780 entries

Pages visited 2008Pages visited 2008 1,443,6101,443,610

285.968 377.078646.701

1.443.610

2005 2006 2007 2008


Public Transparency Pages: Each Federal Body

389 Public Transparency Pages:44 State Owned Enterprises with Transparency WebPages

PublicProcurement

BudgetExpenditure

Public Agreements

ContractsPer Diems and

Tickets


International Awards

UNODC Award

“Important work in promoting transparency in public spending”

One of the five best practices in the field of transparency and anti-corruption strategies in the world

UNCAC States Parties Conference Bali 2008


Brazilian e-procurement system

28

Comprasnet Portal

COMPRASNET is the access point to the Brazilian Federal Government’s e-procurement system. The portal enables users to view information on all Federal Government purchases of goods and services and to participate in the e-procurement process.

Spending Watcher

data-matching and tracking system

Monitored Tracks1. COLLUSIVE BEHAVIOUR – BIDDER FIRMS

2. AMOUNTS BEYOUND THE LEGAL THRESHOLD

3. MORE THAN ONE “EXCLUSIVE” SUPPLIER

4. INSUFFICIENT TIME FOR BID SUBMISSION

5. BIDS REGISTERED ON NON-BUSINESS DAYS

6. INAPROPRIATE EXEMPTION OF PROCUREMENT

7. IMPROPER PROCUREMENT

8. BIDDERS WITH SAME ADDRESS

9. NEWBORN FIRMS

SpendingWatcher

23


List of Ineligible Firms - CEIS

133 firms declared ineligible 777 firms temporarily suspended


133 ineligible and 777 suspended firms133 ineligible and 777 suspended firms

Firm’s identification

Identification of the Public Body responsible

for the sanctionSource of

informationState


Incentive to Social ControlThe Office of the Comptroller General (CGU) developed the Keeping a Sharp Eye on Public Money Program, with a view to promoting change in society through education, access to information and social mobilization.

To promote social control, the CGU also developed the CGU’s Online School, offering course programs in: 1. Internal Control; 2. Social Control; 3. Social Control of the Government Education Programme –FUNDEB; 4. Public Procurement and Contracts.


Kid’s Websitewww.portalzinho.cgu.gov.br


Project “One for All and All for One for Ethics and Citizenship”

“Um por Todos e Todos por Um pela Ética e Cidadania”

Partnership between the CGU and Maurício de Souza Institute, a non-governmental organisation.

Designed to foster citizenship, ethics and responsibility among participants: educators, students, families and communities.


Implementing International Conventions Implementing International Conventions Against Corruption Against Corruption

The CGU prepared handbooks and pamphlets aimed at disseminating the terms of the OECD Convention against Corruption. In addition, the agency developed a web site with information on the Convention.


UN CONVENTION WEBSITE


OECD CONVENTION WEBSITE


OAS CONVENTION WEBSITE


Public-Private Cooperation Against Corruption

Distribution of pamphlets on the OECD Convention to over 20,000 enterprises;

Research conducted with over 450 Brazilian enterprises to identify the anti-corruption and integrity measures adopted by enterprises;

Preparation and distribution of Ministerial Letters to 45 of the biggest export companies to raise awareness of the OECD Convention and of the integrity methods for fighting corruption.


CGU and Ethos Institute Partnership:CGU and Ethos established a partnership aiming at :

- Stimulating and putting into force initiatives to strengthen good practices of corporative governance

- Promoting ethics and integrity in the relationship of public and private sectors.

Public-Private Cooperation Against Corruption


The Ethos Institute:The Ethos is a NGO created to help companies achieve a The Ethos is a NGO created to help companies achieve a socially responsible corporate governancesocially responsible corporate governance

Mission: Mission: Mobilizing, sensitizing and helping companies to manage their Mobilizing, sensitizing and helping companies to manage their businesses in a socially responsible manner, making them businesses in a socially responsible manner, making them partners in the construction of a fair sustainable society.partners in the construction of a fair sustainable society.

Ethos is one of the institutions responsible for the developmentEthos is one of the institutions responsible for the development of of the the ““Pact Against Corruption and for IntegrityPact Against Corruption and for Integrity””,, signed by over 500 companies, including all major companies in Brazil.


The Permanent Working Group, established to strengthen The Permanent Working Group, established to strengthen implementation of the principles set forth in the Pact implementation of the principles set forth in the Pact Against Corruption and for Integrity and composed of 24 Against Corruption and for Integrity and composed of 24 signatories and observer members, is tasked with:signatories and observer members, is tasked with:

1. Evaluating and considering effective measures to fulfilthe commitments provided for in the Pact;

2. Expanding mobilization and enlistment of not-for-profit companies and entities;

3. Generating information and references to help companies promote integrity and fight corruption, and;

4. Integrating anti-corruption networks.


Designed by the Ethos Designed by the Ethos Institute, the Institute, the ““Clean Clean CompanyCompany”” stamp is stamp is conferred to signatories of conferred to signatories of the the ““Pact Against Corruption Pact Against Corruption and for Integrity.and for Integrity.””

The stamp certifies a The stamp certifies a companycompany’’s commitment to s commitment to eliminating all forms of eliminating all forms of corruption from the corruption from the corporate environment and corporate environment and compliance with twicecompliance with twice--yearly yearly evaluations of the progress evaluations of the progress made to this end.made to this end.

“Clean Company” Campaign

www.empresalimpa.org.brwww.empresalimpa.org.br


Initiatives being implemented by the CGU - Ethos Partnership

Handbook on Fighting Corruption in the Handbook on Fighting Corruption in the Private Sector: aimed at strengthening Private Sector: aimed at strengthening the dialogue between the public sector the dialogue between the public sector and the private sector for purposes of and the private sector for purposes of supporting private initiatives to promote supporting private initiatives to promote integrityintegrity

Distance course offering on the Distance course offering on the handbook abovehandbook above

Handbook and distance course for Handbook and distance course for SMEsSMEs (small(small-- and mediumand medium--sized sized enterprises), inspired by the experiences enterprises), inspired by the experiences of of ““Colombia: Colombia: RumboRumbo PYMES PYMES IntegrasIntegras y y TransparentesTransparentes..””


- Mapping of initiatives/entities aimed at promoting integrity in the private sector, with a view to disseminating principles and initiatives

- Co-ordination of actions within MERCOSUR designed to give publicity to methodologies and tools to promote integrity in thebusiness sector, as well as to establish corporate pacts in partnership with organisations in the MERCOSUR countries

- Development of a handbook for both the private and public sectors identifying and providing information on illicit practices and the primary forms of bribery in public-private relationships

- Discussions with the Working Group of the Pact Against Corruption and for Integrity on the inclusion of a clause establishing a commitment by signatories to avoid doing business with firms entered in the Transparency Portal’s List of Ineligible Companies.

- Meeting with the 7 major Auditing and Corporate Consulting Companies in Brazil to foster initiatives to strengthen good practices in corporate governance.

CGU - Ethos Partnership Initiatives


Thank you!

Jorge HageMinister of State, Head of the Office of the

Comptroller General of Brazil

CONTROLADORIA-GERAL DA UNIÃOSetor de Autarquia Sul, Quadra 1, Bloco A

Edifício Darcy Ribeiro - CEP: 70070-905Brasília - DF – Brazil

www.cgu.gov.br [email protected]

anti-corruption measures in brazil

Documents

official misconduct

judiciary law

public procurement law

public finances law

eprocurement system

economic order law

city council membersdecreelaw

acts of corruption