Four IT companies banned from participating in government contracts

- Friday, August 12, 2011

Four IT companies banned from participating in government contracts

Four IT companies have been banned from bidding on government contracts throughout Brazil after the federal district (DF) transparency department ruled them to be "not of good repute," online source Computer World reported.

The four companies are Linknet Tecnologia e Telecomunicações, Adler Assessoramento Empresarial e Representações, Capbrasil Informática e Serviços, and Interprice Engenharia de Software.

All four have been accused of taking part in illicit contracts in Distrito Federal public tenders during former governor José Arruda's term. The politician resigned from office to avoid impeachment and is still under investigation.

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The federal district transparency department's decision comes following a substantial federal police investigation launched in 2009 into Arruda's government contracts. The operation was named Caixa de Pandora (Pandora's Box).

The federal police inquiry found 15 IT companies suspected of illicit acts, such as paying bribes in exchange for procurement and services contracts with the DF government - some of which have never been delivered.

Up until now, the DF transparency department has declared only the four firms to be "not of good repute," which means they are banned from taking part in any public tender in the country. The companies will also be brought to court.

The total amount of payments these companies received from irregular contracts reaches 350mn reais (US$215mn).