Collusive Bidding in Brazilian Infrastructure Projects

Signor, R. and Love, P. and Olatunji, O. and Vallim, J. and Raupp, A. 2017. Collusive Bidding in Brazilian Infrastructure Projects. Proceedings of the Institution of Civil Engineers: Forensic Engineering. 170 (3): pp. 113-123.

Source Title

Proceedings of the Institution of Civil Engineers: Forensic Engineering

DOI

10.1680/jfoen.17.00013

ISSN

2043-9903

School

Department of Civil Engineering

URI

http://hdl.handle.net/20.500.11937/59452

Collection

Curtin Research Publications

Abstract

Allegations of corruption have resulted in an investigation of Brazil’s national ‘oil’ company prior to an incumbent Brazilian president disputing their re-election. The investigation has examined allegations that several directors of the ‘state’-owned company received bribes from construction companies and that the funds were used to support the parties of the governing coalition. Using a case study, this paper presents the approach adopted by the Brazilian Federal Police to determine if collusion had occurred. The bidding patterns of construction firms in 22 infrastructure projects suggested to the police that collusion occurred. Considering these circumstances, 561 bids for 77 projects were examined. Investigators obtained evidence that indicates that a collusive behaviour regarding procurement at specific construction firms (the League of 16) had taken place. The conclusions of the research provide insights into the intendment of the League of 16’s bidding patterns with an example of the ‘real’ cost of cartelisation that was experienced in an infrastructure project.