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LatinNews Daily - 02 August 2018

In brief: Brazil

*The Tribunal de Contas da União (TCU), Brazil’s financial ombudsman, has banned local construction firm OAS from bidding for any public contracts in Brazil for the next five years. The ban comes after the TCU said that it had confirmed that OAS, one of the firms under investigation in relation to the major government corruption scandal revolving around state-owned oil firm Petrobras, was involved in a series of irregularities that led to it being awarded a contract to build an oil refinery in Pernambuco state. According to the TCU, OAS actively participated in the diversion of some R$13bn (US$3.51bn) of public funds from the ‘Abreu e Lima’ refinery project. OAS, one of Brazil’s largest construction firms, had reached a deal with local prosecutors investigating the case under which it would be allowed to continue bidding for public contracts while the investigations are carried out. But the TCU considered that OAS has not fully collaborated with the investigations and has decided to ban it. The ban could further complicate OAS’s position given that the firm filed for bankruptcy in 2015 after its implication in the corruption scandal led to its access to credit being limited.

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