Brasília – August 21, 2025
Brazil’s competition authority CADE has fined five construction companies and six individuals a combined 2 million reais (US$370,000) for colluding to rig bids for public works contracts in the state of Rio Grande do Norte.
The tribunal ruled that the companies manipulated tenders run by the municipalities of Caraúbas and Patu, as well as by state-level entities, between 2005 and 2012. The scheme involved cover bidding, market allocation, and price manipulation, according to evidence from seized documents, email exchanges, and wiretaps.
The case originated with materials provided by the Rio Grande do Norte state prosecutor’s office and was bolstered by findings from Operação Sangria, a corruption probe. CADE concluded that the collusion caused direct harm to public finances by distorting the outcome of competitive tenders.
By unanimous decision, CADE imposed fines exceeding R$1.5 million on the companies Comercial Gurgel, FA Construções, F&A Construções e Empreendimentos, Seconh, and Terramaq. Six individuals involved in the scheme were fined more than R$370,000.
Councilor Víctor Oliveira Fernandes, issuing a concurring opinion, said the “robust” evidence left no doubt as to the coordination among the firms, highlighting communications and signed documents that tied participants directly to the cartel.
The decision (Administrative Proceeding No. 08700.002247/2015-70) marks another example of CADE’s ongoing scrutiny of bid-rigging in public procurement, a recurring enforcement priority for the authority.
