A recent survey by Quaest and Transparency International suggests that 64% of Brazilian executives still have a positive view of the anticorruption efforts of Operation Lava Jato, despite its recent challenges.
The survey interviewed 100 executives from the top 250 Brazilian companies between July 12 and 28 and found that 83% believe that recent anticorruption operations have decreased the sense of impunity.
Furthermore, 93% of the executives believe these operations have beneficial effects on companies, including changes in corporate integrity standards and mechanisms.
However, 91% of the executives surveyed believe that current corporate integrity systems in Brazilian companies remain “immature,” despite tools introduced by the Anti-Corruption Law, such as leniency agreements and promoting compliance systems.
Bruno Brandão, executive director of Transparency International Brazil, stated that the Anti-Corruption Law modernized Brazilian legislation, initiating a private sector revolution through spreading compliance culture and mechanisms.
Still, as per the executives, the effectiveness of these integrity systems depends on top leadership support within companies and the enforcement capability of authorities.
Views on the effectiveness of investigative bodies’ control, termed enforcement, were split among surveyed executives.
Around 36% think authority control has remained stable, while only 28% see an increase in recent years.
The executives also believe that loosening the State-Owned Enterprises Law poses a high risk to the compliance of public companies (71%).
Meanwhile, 87% believe Brazil’s entry into the Organization for Economic Cooperation and Development (OECD) could boost business administration standards.
The potential OECD membership, a key goal of former President Jair Bolsonaro’s government, hasn’t been a highlighted issue under the new government of Luiz Inácio Lula da Silva.
OPERATION LAVA JATO
Operation Lava Jato, or “Car Wash,” was a major Brazilian anti-corruption investigation launched in 2014, initially focusing on money laundering but quickly expanding to probe corruption within Brazil’s state-owned oil company, Petrobras.
The operation exposed widespread bribery involving high-level politicians and business executives, leading to numerous convictions, including Luiz Inácio Lula da Silva.
The operation was marked by controversy, with critics arguing about its methods and impact on Brazil’s political landscape