Alckmin backs down: he will take legal action against other companies in the cartel.

After two defeats in court, the São Paulo state government complied with a ruling from the 11th Chamber of Public Law of the São Paulo Court of Justice and will include other companies suspected of colluding to inflate prices in bidding processes for the São Paulo Metro and the Companhia Paulista de Trens Metropolitanos (CPTM) since 1998 in its compensation claim; previously, only Siemens was mentioned.

December 05, 2013, 10:28 AMUpdated May 27, 2019, 08:39 AM

After two defeats in court, the São Paulo government complied with a ruling from the 11th Chamber of Public Law of the São Paulo Court of Justice and will include other suspected companies involved in collusion to inflate prices in bidding processes for the Metro and the Companhia Paulista de Trens Metropolitanos (CPTM) since 1998 in its compensation claim; previously, only Siemens was mentioned (Photo: Roberta Namour).

Daniel Mello
Reporter from Agência Brasil

São Paulo – The São Paulo state government will include the companies cited by Siemens in the lawsuit seeking compensation for cartel formation in public transportation bids in the state. According to the State Attorney General's Office (PGE), the inclusion complies with a ruling by the 11th Chamber of Public Law of the São Paulo Court of Justice. The companies are suspected of colluding to inflate prices in bids for the São Paulo Metro and the Companhia Paulista de Trens Metropolitanos (CPTM) since 1998.

Previously, the compensation claim was only against Siemens. The German company signed a leniency agreement with the Administrative Council for Economic Defense (Cade), an agency linked to the Ministry of Justice. Under the agreement, by denouncing the fraud scheme, the company may have its punishment reduced. "The decision to initially prosecute Siemens stems from the fact that it is a confessed defendant – and the addition of the other companies does not alter the state government's firm intention to demand full reimbursement of public funds," the prosecutor's office justified in a statement.

Yesterday (4), the Minister of Justice, José Eduardo Cardozo, defended, in the Chamber of Deputies, his conduct and the actions of the Federal Police in the case. At the end of November, the release of a dossier generated controversy for involving the names of PSDB politicians in the frauds. The leak led to an exchange of accusations between PSDB and PT members.

The minister reported receiving a folder of documents in May of this year containing evidence of irregularities in bidding processes. The material was delivered by Pedro Simão, Secretary of Services for the city of São Paulo, to the minister's residence.