The Compliance and Investigations Newsletter aims to provide information on the main media news, trends, cases and legislation concerning compliance matters, in Brazil and abroad. This material is for informational purposes and should not be used for decision making. Specific legal advice can be provided by our legal team.
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Compliance and Investigations Team
CGU and AGU present settlement proposal to the STF to renegotiate leniency agreements
On June 27, 2024, the Brazilian Office of the Comptroller-General (“CGU”) and the Federal Office of the Attorney-General (“AGU”) presented to the Brazilian Federal Supreme Court (“STF”) the final proposal to settle leniency agreements, within the context of the action against the violation of a constitutional fundamental right (“ADPF”) No. 1,051/DF, which addresses the suspension of pecuniary obligations imposed in all leniency agreements executed between the State and companies investigated during the “Lava Jato” Operation.
The CGU waived the interest charges while contractors were delinquent, but intends to charge the SELIC rate to correct the balance from now on. The payment schedule will be renegotiated according to the companies’ payment capacity. However, the sum of these benefits may exceed the maximum release of up to 50% of the updated debtor balance of each leniency agreement.
The CGU and AGU requested to the STF a 30-day extension for completing the evidentiary stage. This additional deadline is also aimed at concluding discussions on ancillary clauses to the agreement, such as the deadline and value of each installment. The negotiation will be submitted for assessment and approval after this process.
Currently, no sanctions can be applied to companies due to potential default in the payment of financial obligations agreed upon.