Despite some vetoes, Dilma approves the Anti-Corruption Law.

Luana Lourenço, from Agência Brasil - President Dilma Rousseff has signed into law, with vetoes, the Anti-Corruption Law, which holds companies administratively and civilly liable for crimes against public administration and provides for new penalties. The law and the veto message will be published in this Friday's (2) edition of the Official Gazette of the Union.

Approved by the Senate in early July, the law provides for punishment, in spheres beyond the judicial one, of companies that corrupt public officials, defraud bids and contracts, or hinder the investigative or supervisory activities of public bodies, among other illegal acts.

Dilma made three vetoes to the text, according to information from the Comptroller General of the Union (CGU). In the first veto, the president removed from the text the section that limited the amount of the fine applied to companies to the value of the contract. The wording that provides for the application of a fine of up to 20% of the company's gross revenue, or up to R$60 million when this calculation is not possible, remains.

In the second veto, the government removed from the law the section that dealt with the need to prove guilt or intent to apply sanctions to the company. According to the CGU (Brazilian Comptroller General's Office), given the damage to public funds, it will not be necessary to prove that the company owners intended to commit the irregularities.

Dilma also vetoed the clause that stated the involvement of a public servant in a corruption case would be a mitigating factor for the company.

According to the CGU (Brazilian Comptroller General's Office), under the new law, in the judicial sphere, forfeiture of assets, suspension of activities, and compulsory dissolution may be decreed, in addition to the prohibition of receiving incentives, subsidies, grants, donations, or loans from public bodies or entities and from public or publicly controlled financial institutions, for a specified period. Administrative penalties will be applied by the CGU or the minister of each area.

The Anti-Corruption Law also provides for differentiated treatment between companies that are negligent in combating corruption and those that strive to prevent and suppress illegal activities. Companies that have internal audit policies, apply codes of ethics and conduct, and encourage reporting of irregularities may have their penalties reduced.

The new law also mandates disregarding the legal personality of companies that have received sanctions but attempt to secure new contracts with the government through new companies created by partners or front men.

Editing: Fabio Massalli