The launching of President Dilma Russef's second term has seen the change in the Brazilian Anticorruption Agency ("CGU") head, with Valdir Moysés Simão taking over from Jorge Hage.
Valdir Simão has a long career dedicated to the public sector, acting for two terms as head of the National Social Security Institute (INSS) (2005-2007 and 2008-2010) and also as the former executive secretary to the President's Chief of Staff.
The CGU is the authority in the executive branch for investigating corruption cases involving the Brazilian Federal Administration and also actions involving payment of bribes to foreign authorities by Brazilian nationals. Through its four Internal Secretariats – Corruption Prevention and Strategic Information Secretariat (SPCI), Federal Internal Control Secretariat (SFC), National Disciplinary Board (CRG) and the Office of the Ombudsman (OGU) – CGU combines the different roles of preventing and investigating corruption cases through internal control activities, public audits, corrective and disciplinary measures and coordinating hotlines.
In his inaugural, Minister Valdir Simão listed as immediate priority for the CGU the modernization and strengthening of internal control mechanisms, by using Information Technology to develop new tools to monitor and enforce corruption prevention and investigation. To Minister Simon, one of the major roles to be plaid by companies consists on the proper structuring and strengthening of internal compliance areas in the direct public administration and regulatory agencies, state owned companies and also the private sector.
First item in the order of the day for the CGU is the passing of the Federal Decree regulating the reach of the Brazilian Clean Companies Act (Federal Law 12846/12 in effect since January 2014), providing more legal certainty to the enforcement of the Clean Companies Act in Brazil.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
