Brazil Retrieves Some R$700 Million in Misappropriated Funds From Lawsuits

RIO DE JANEIRO, BRAZIL – The federal Solicitor General, André Mendonça, said on August 15th, in Lima, Peru, that Brazil has retrieved approximately R$700 million (US$175 million) to the public coffers this year in administrative misconduct lawsuits.

In 2018, the body collected R$500 million. According to Mendonça, the Brazilian expertise in the use of leniency agreements with the companies investigated in Operation Lava Jato had a greater return than asset recovery lawsuits.

André Mendonça attended the General Assembly of the Latin American Association of Lawyers and State Prosecutors (ALAP). Like Brazil, Peru also recorded corruption cases involving the Odebrecht contractor and the misappropriation of public funds.

“In the case of Odebrecht, the company denounced some 170 other companies and 150 public officials who received bribes. Between the payment of fines, of profits and full return of bribes paid, we had more than 70 percent asset recovery figures”, he said.

According to the minister, administrative tools such as leniency agreements, are more effective in fighting corruption and preventing further misappropriations.

“I don’t believe the criminal trial is the best way to raise misappropriated funds. If a civil lawsuit requires ten years in Brazil, a criminal lawsuit takes much longer, and there are far more restrictions on the prosecution of sanctions due to the rights and safeguards of defendants.”

“An administrative liability lawsuit in Brazil, for a company or a case of this kind, takes from six months to a year,” he added.

ALAP is comprised of nine countries. In addition to Brazil, the group includes Colombia, Chile, Guatemala, Ecuador, Panama, Honduras, Peru, Paraguay, and Bolivia.