2021 LS&HC Horizons - Flipbook - Page 76
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Hogan Lovells
Anti-corruption efforts and enforcement actions in Brazil
The enactment of the Brazilian anticorruption
legislation in 2014 (known as the Brazilian Clean
Company Act – Law No. 12,846/2013) has brought
significant changes with respect to measures against
corruption in Brazil. Brazilian authorities have
been drawing their attention and efforts to combat
corruption, big-rigging, and other unlawful conduct
against renowned companies and individuals.
The major and most important federal anticorruption investigation known as Operation Car
Wash has played a huge role in Brazil, as billions of
reais were recovered, thousands of individuals were
arrested, hundreds of companies were convicted,
and innumerous international agreements have been
entered into. Ever since the release of Operation Car
Wash, Brazilian authorities have also focused their
attention and efforts to fight unlawful conduct carried
out within the life science and health care industries.
Significant anti-corruption investigations such as
Mafia of Prosthetics, Operation Pacemaker, and
Operation Resonance, among others, carried out
in Brazil, are examples of relevant and significant
investigations conducted by the Brazilian authorities
with a focus on the health industry, with the
extensive cooperation of international authorities,
including the U.S. Department of Justice. Individuals
and companies that have been investigated and
prosecuted in connection with those investigations
were accused of making improper payments
and paying kickbacks to HCPs with the intent of
influencing them to use medical devices, including
stents, orthoses, and prostheses, among other
unlawful conduct.
Brazilian public authorities have continued to
focus their efforts on the health industry during the
COVID-19 pandemic. As a result of the pandemic,
some emergency measures were approved by the
Congress which included the flexibilization of rules
related to the public procurement laws with respect
to purchase of goods by hospitals to deal with the
pandemic. Brazilian public authorities remained
vigilant in detecting, investigating, and prosecuting
wrongdoings and commenced several investigations
throughout Brazil concerning the overpricing of
materials, the lack of public bids, fraudulent bids, and
deviations of public resources, such as the Operations
Desvid-19, Virus Infection, and Olet.
As a positive note, compliance policies and
procedures have become a norm in Brazilian business
operations in view of the enforcement of the new
anticorruption law and change in culture. Brazilian
companies and multinationals with branches
in Brazil have been enhancing their compliance
programs including with respect to controls over
employees and third-party providers, the provision
of more training or undertaking risk assessments.
Also, the public administration has begun demanding
proof of a compliance program when bidding out for
hiring of goods or services from the private sector. A
strong compliance culture is a key factor to prevent
corruption and this cultural change has come to stay
in Brazil.
Isabel Carvalho
Office Managing Partner, São Paulo
isabel.carvalho@hoganlovells.com
Mariana Vasques Matos
Senior Associate, Sao Paulo
mariana.matos@hlconsultoriaLtda.com.br
