Construction Companies Andrade Gutierrez, Artec, UTC Engenharia and Queiroz Galvão Have Approval from the STF to Sign New Construction Contracts with the Government
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Appeals from the construction companies against decisions by the Federal Court of Accounts (TCU) that prevented them from contracting with the public administration due to bidding frauds were judged, most related to overpricing in the Angra 3 power plant works.
The lawyers of the construction companies argue that the sanction would undermine leniency agreements made with federal public agencies and with the Administrative Council for Economic Defense (Cade). The judgment began in May of last year, with votes from the rapporteur, Gilmar Mendes, and Edson Fachin. On Tuesday, Ministers Nunes Marques, Ricardo Lewandowski, and Cármen Lúcia voted.
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In 2018 and 2019, Mendes granted injunctions to suspend the TCU sanction until the final judgment of the companies’ appeals by the STF. Last year, the minister voted in favor of confirming the injunctions. For him, the TCU cannot prevent leniency agreements, as this would compromise legal security and violate the guarantee of transparency and predictability of acts by the public authority.
It is Necessary to Grant Incentives for Agreements to Be Made, So That Andrade Gutierrez, Artec, UTC Engenharia, and Queiroz Galvão Contribute to the Investigations
According to the rapporteur, it is necessary to grant incentives for agreements to be made so that the companies can contribute to the investigations. He emphasized that the entire public administration must act in a coordinated manner. In the vote given last year, Mendes noted that it is important for the companies to function, repair the damages caused, and pay the imposed fines.
The minister also stated that, in the decisions, the TCU exceeded its powers and used evidence borrowed from other processes, without ensuring the companies a fair opportunity to defend themselves before preventing them from contracting with the public authority.
Fachin partially diverged and agreed with the rapporteur only regarding Andrade Gutierrez. He explained that, in this case, the leniency agreement made between the contractor and the Federal Public Prosecutor’s Office predates the TCU decision – therefore, it must be legitimized. On Tuesday, Cármen Lúcia agreed with Fachin. Nunes Marques and Lewandowski agreed with Mendes.

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