Brasília, 21 May 2025 — Brazil’s Administrative Council for Economic Defense (Cade), in coordination with the Public Ministry of the State of Minas Gerais (MPMG), launched a major search and seizure operation today targeting an alleged cartel suspected of rigging public bus transport tenders across several municipalities in the state of Minas Gerais.
Dubbed Operation Apate, the enforcement action focuses on suspected collusion between companies involved in urban public transport tenders and potential fraud in the contracting of services, particularly in the city of Juiz de Fora.
The operation stems from a joint investigation by Cade’s General Superintendence and the 22nd Public Prosecutor’s Office of Juiz de Fora, triggered by findings from the state’s audit office (MPC-MG). The investigation spans at least seven cities in Minas Gerais, including Betim, Belo Horizonte, Divinópolis, Governador Valadares, Contagem, Poços de Caldas, and Juiz de Fora.
Search warrants were executed in multiple locations across Minas Gerais—including Juiz de Fora, Belo Horizonte, Viçosa, Ervália, and Paracatu—as well as in Três Rios, a city in the neighbouring state of Rio de Janeiro.
The operation mobilized a large contingent of personnel, including:
- 35 officials from Cade
- 15 agents from MPMG’s Special Task Force to Combat Organized Crime (GAECO)
- 20 civil police officers from Minas Gerais
- 25 military police officers from Minas Gerais
- 8 GAECO agents from Rio de Janeiro
- 9 prosecutors and 4 employees from MPMG
Following the collection and review of evidence, Cade’s General Superintendence will issue a technical report. If the evidence confirms anti-competitive conduct, the case will be referred to Cade’s Tribunal, which could impose penalties.
Companies found guilty of violating competition laws face fines ranging from 0.1% to 20% of their gross revenue in the market where the offense occurred, based on the previous fiscal year. Individuals involved may face fines between R$50,000 and R$2 billion.
Evidence of criminal activity gathered during the operation will be handed over to the state judiciary by the Public Prosecutor’s Office for possible criminal prosecution.
Operation Apate marks another high-profile effort by Brazilian authorities to crack down on bid-rigging and corruption in public procurement, particularly in essential public services like urban transportation.
