Ministry of Transparency freezes Lava Jato investigations.

The suspension of Lava Jato investigations has been a pattern in Michel Temer's Ministry of Transparency; eleven companies suspected of corruption, most of them targets of Lava Jato, have had their administrative liability proceedings (PARs) frozen with the justification that they will negotiate collaborations, according to data from the ministry itself; however, so far, only one, UTC Engenharia, has reached an agreement with the government; the Ministry of Transparency does not disclose the names, citing confidentiality; the TCU (Federal Court of Accounts), which is investigating the procedures of the agency, understands that the pause has no legal basis and unduly favors the companies and may result in the statute of limitations expiring on the crimes.

November 03, 2017, 07:56 PMUpdated June 26, 2018, 11:59 pm

The suspension of Lava Jato investigations has been a pattern in Michel Temer's Ministry of Transparency; eleven companies suspected of corruption, most of them targets of Lava Jato, have had administrative liability proceedings (PARs) frozen with the justification that they will negotiate collaborations, according to data from the ministry itself; however, so far, only one, UTC Engenharia, has reached an agreement with the government; the Ministry of Transparency does not disclose the names, citing confidentiality; the TCU (Federal Court of Accounts), which is investigating the procedures of the agency, understands that the pause has no legal basis and unduly favors the companies and may result in the statute of limitations expiring on the crimes (Photo: Giuliana Miranda).

247 - The Ministry of Transparency has suspended for two years the investigation into irregularities committed by Engevix at Petrobras, on the grounds that the construction company proposed a leniency agreement—a type of plea bargain for legal entities.

Documents from the TCU (Federal Court of Accounts), obtained by Folha, show that while the investigations were stalled, the construction company, a target of Lava Jato, did not confess to any wrongdoing, did not cooperate in the discovery of new crimes, and negotiations failed.

The suspension of investigations has been a pattern at the Ministry of Transparency. Eleven companies suspected of corruption, most of them targets of Lava Jato, have had their administrative liability proceedings (PARs) frozen to negotiate collaborations, according to data from the ministry itself. However, so far, only one, UTC Engenharia, has reached an agreement with the government.

Transparency International does not disclose the names, citing confidentiality. Among them are companies investigated in Operation Lava Jato, such as Engevix, Galvão Engenharia, and the Dutch company SBM.

The TCU (Brazilian Federal Court of Accounts), which is investigating the agency's procedures, believes that the pause has no legal basis and unduly favors companies.

According to the court, this conduct contributes to the irregularities expiring without proper investigation and also enriches the companies involved, since, as long as they are not punished by the government, they remain eligible to enter into public contracts.

The information is from Report by Fabio Fabrini and Julio Wiziack in Folha de S.Paulo.