ANTI-CORRUPTION COMPLIANCE IN LATIN AMERICA
R&C: What do you consider to be the main corruption trends in Latin America over the past 12 months or so? How would you describe current corruption levels?
Rodrigues: Public procurement was an important corruption trend last year, particularly against the backdrop of the coronavirus (COVID-19) pandemic. Indeed, authorities faced significant issues pertaining to irregular bids and purchases, most often through the waiving of competitive bid requirements for medical supplies. In Brazil, similar discussions took place, not only at a judicial level, which gave rise to proceedings in different spheres – such as criminal prosecutions for active and passive corruption, bid rigging and other crimes – but also at the legislative level, with the launch of a Parliamentary Inquiry Commission, one of the ways in which legislative power exercises its supervisory function. Therefore, 2021 experienced an important corruption trend linked to government purchases in the context of the COVID-19 pandemic. However, although corruption levels are not necessarily decreasing, companies are attempting to mitigate related risks.
Rassi: Corruption is a structural problem in Latin America (LATAM) which is particularly harmful in lower-income countries. Every country in LATAM, except for high-income jurisdictions, is ranked 63rd or worse in the Rule of Law Index’s Worldwide Absence of Corruption category. Weaknesses within democratic institutions facilitate corruption, and corruption dents the strength of democratic institutions in a seemingly never-ending cycle.
Apr-Jun 2022 Issue
Demarest
Prías Cadavid Abogados
Siqueira Castro Advogados
Steptoe & Johnson LLP
Womble Bond Dickinson (US) LLP