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Brazil: Following Siemens lawsuit, Sao Paulo cracks down on subway cartel

 |  August 20, 2013

Following the news the city of Sao Paulo, Brazil plans to sue Germany-based Siemens for anticompetitive behavior in Sao Paulo’s public transportation sector, city courts are now panning to ban up to 20 companies from taking part in government contract auctions for subway projects if they are found to have colluded in a cartel. Media reported Tuesday that the companies are alleged to have colluded to rig bids to win government contracts for operating and building subway systems in both Sao Paulo and Brasilia. Sao Paulo’s audit court has reportedly requested that any companies found guilty of participating in the alleged cartel must be barred from taking part in contract bidding for five years, and has additionally asked current subway project contracts to be reviewed. Repots say the investigation first launched following information given to competition regulators by Siemens.

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