Corruption in Public Procurement in Brazil

Operation Car Wash began in 2014 and brought to light corruption schemes within public procurement. It prompted Brazil to intensify its legal crusade against corruption and improbity. Brazil improved enforcement of rules long ignored, and it adopted legislation to face the new challenges. The change has its idiosyncrasies. Instruments like the Anticorruption Act of 2013, the Government Contracts Act of 2021, and the Administrative Improbity Act reformed in 2021 form an intertwined system aligned with international practices and commitments. It sends conflicting signals by tightening criminal and administrative penalties while at the same time it relaxes enforcement and advances negotiated settlements. Brazil’s system of debarment and exclusion in public procurement is misconduct-based, but a risk-based approach has emerged through leniency agreements and deferred or non-prosecution agreements