Brazils Articles of Impeachment Implications to Operation Car Wash - - PowerPoint PPT Presentation

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Brazils Articles of Impeachment Implications to Operation Car Wash - - PowerPoint PPT Presentation

Nov 17, 2023 373 likes •561 views

Brazils Articles of Impeachment Implications to Operation Car Wash and the Economy Doug Doetsch Salim Jorge Saud Neto Partner Partner +1 312 701 7973 +55 21 2127 4210 ddoetsch@mayerbrown.com sjsaud@mayerbrown.com Kelly B. Kramer

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Brazil’s Articles of Impeachment

Implications to Operation Car Wash and the Economy

December 10, 2015

Doug Doetsch Partner +1 312 701 7973 ddoetsch@mayerbrown.com Kelly B. Kramer Partner +1 202 263 3007 kkramer@mayerbrown.com Salim Jorge Saud Neto Partner +55 21 2127 4210 sjsaud@mayerbrown.com

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Speakers

Doug Doetsch Chicago +1 312 701 7973 ddoetsch@mayerbrown.com Salim Jorge Saud Neto Rio de Janeiro +55 21 2127 4210 sjsaud@mayerbrown.com Kelly B. Kramer Washington DC +1 202 263 3007 kkramer@mayerbrown.com

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Operation Car Wash - 2014

March17 March 20 2nd Phase – “Bidone” Alberto Costa April 11 June 11 4th Phase – “Casablanca” Alberto Costa July 1 August 22 6th Phase – “Bidone 3” Alberto Costa plea October November 14 7th Phase – “Doomsday” December November Petrobras Financial 1st Phase Costa arrested 3rd Phase “Dolce Vitta” Costa arrested again 5th Phase “Bidone 2” Petrobras + Health Ministry Costa plea bargain Elections Dilma Rousseff re-elected Congressional Committee Report Financial Statements

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2014 Elections Winning Ticket

President Rousseff PT Vice-President Temer PMDB

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Operation Car Wash - 2015

January 14 February 5 9th Phase “My Way” March 6 Investigations at Supreme Court March 16 April 10 11th Phase Health Ministry + Caixa April 15 April 22 May 21 13th Phase February June 19 14th Phase Marcelo Odebrecht arrested July 2 July 16 16th March 12 Cunha’s deposition at CPI Aug 3 17th Phase Pixuleco Aug 13 Sep 21 19th Phase Nessum Sep 30 Oct 7 20th Phase Nov 16 21st Phase Nov 24 Cunha’s Ethics Nov 03 Nov 25 8th Phase “Nestor Cervero” 10th Phase – “What Country is this? Caixa 12th Phase Vaccari (PT treasurer) arrested Petrobras Financial Statements BRL6.2 Billion losses for corruption Cunha defeats PT candidate and is Speaker

  • f the

House New Congressional Investigation Commitee CPI arrested 15th Phase Upstream Services Industry 16th Phase Corruption at Nuclear Power Company 18th Phase Pixuleco II Nessum Dorma Cunha’s Swiss Accounts TCU rejects Rousseff’s accounting for 2014 Ethics Committee Proceeding Arrest of Senator Delcidio Amaral + André Esteves

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Speaker of the House

Eduardo Cunha PMDB

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Impeachment request submitted to the Dismissed President suspended Judgment at Senate

Approved

Defense Report Vote

Impeachment Proceeding

submitted to the Speaker of the House Accepts the proceeding Election of Reporting Committe Not guilty Guilty Impeachment Dismissed Returns Removed and loses rights

Rejected

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Defense Vote at the House of Representatives 512 representatives

Impeachment Proceeding

2/3 342 Votes 171 Votes

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Defense Vote at Senate 81 Senators

Impeachment Proceeding

2/3 54 Votes 27 Votes

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Defense

Sep 1 Oct 7 Oct 15 Updated Request Oct Dec 2 Dec 1 PT decides to vote against Cunha in Dec 3 Dec 3 Mandamus filed and denied by STF Dec 7 Dec 7 / 8 Dec 8 Dec 8 Dec 9 Dec 9 TCU denies appeal Dec 9 Reporter

  • f Cunha’s

case removed

Impeachment Proceeding

Impeachment Request Submitted TCU rejects Rousseff’s accountability For 2014 Request submitted Opinion in favor

  • f impeachment

by House legal department Impeachment Request Accepted Cunha in Ethics Proceeding Impeachment request

  • fficially

submitted to the floor

  • f the House

Original Date for appointme nt

  • f committee

members Vice-president Temer’s letter to President Rousseff Election of committee members 272 v 199 STF suspends proceeding Pro-government Leader

  • f PMDB

removed case removed Ethics Committee considers requesting cautionary removal of Cunha

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Supreme Court Decisions

  • Appropriate procedures for entire impeachment process

– Appointment of Committee Members – Can the votes be secret?

  • Currently, proceeding is suspended until a decision by STF

– Decision scheduled for December 16

  • Decisions on status of Eduardo Cunha
  • Decisions on status of Eduardo Cunha

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Has Operation Car Wash Lost Relevance?

  • No. It still attracts attention and enforcement authorities have been

acting in the past few months in stealth

  • A number of companies have been negotiating leniency agreements
  • While CPI-Petro is finished, a number of authorities are still in the

case, including against some of the main actors of the Impeachment proceeding proceeding

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Operation Car Wash - Current Status in Brazil

  • Investigations and criminal proceedings being conducted at the

Supreme Federal Court against sitting members of Congress and Ministers of State

  • Investigations and criminal proceedings being conducted at the

Federal Court in Curitiba against other individuals

  • Proceedings against companies for cartel violations at CADE –

Brazilian Antitrust Authority Proceedings against companies for cartel violations at CADE – Brazilian Antitrust Authority

  • Proceedings against companies for corruption before the CGU – 29

proceedings

  • Improbity lawsuits against individuals and companies
  • Congressional Investigations Committee – CPI Petro

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Operation Car Wash - Current Status in the US

  • US Department of Justice and Securities and Exchange Commission
  • Petrobras has publicly disclosed that it is under investigation by the DOJ and

the SEC, as have a variety of companies that did business with Petrobras

  • The DOJ is also providing formal and informal assistance to Brazil
  • Patrick Stokes, the Chief of the DOJ’s FCPA Unit, reportedly personally visited

Brazil to meet with prosecutors DOJ is also assisting Brazil in tracing the proceeds of bribery

  • DOJ is also assisting Brazil in tracing the proceeds of bribery
  • US Private Securities Claims
  • Petrobras and Braskem have both been sued in class actions and opt-outs for

securities fraud

  • Judge Rakoff has set the claims against Petrobras for trial in September 2016

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Operation Car Wash – Status Globally

  • Global operation
  • Reportedly, around $30 million has been frozen in accounts held by

Petrobras executives and Petrobras’ counterparties’ executives

  • Netherlands:
  • Reached $240 million settlement with SBM Offshore

Switzerland:

  • Switzerland:
  • Swiss authorities are cooperating with Brazil and the US to trace

money across the international banking system

  • Swiss authorities reportedly are providing Brazil with evidence of

clandestine bank accounts, including accounts held by Congressman Eduardo Cunha

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Operation Car Wash – Implications for Enforcement

  • Multi-polar enforcement is the new reality
  • Companies caught up in the Petrobras investigation face scrutiny in

multiple countries (Brazil, Netherlands, Switzerland, US)

  • “Home” jurisdictions increasingly focused on foreign bribery
  • US: Continued enforcement of FCPA
  • Netherlands: $240 million settlement with SBM Offshore
  • Netherlands: $240 million settlement with SBM Offshore
  • Brazil:

CGU recently announced

initiative to monitor Brazilian firms’ conduct outside of Brazil

  • UK: Successfully enforced UK Bribery Act

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Impacts to the Economy

  • Operation Car Wash and Political Crisis have dominated the agenda in

2015

  • Impeachment has shifted the focus from fiscal adjustments (approval
  • f taxes and reduction of budget)
  • Markets reacted favorably the day after impeachment

– Moody’s indicated possible downgrade – Moody’s indicated possible downgrade

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Thank You

For questions, please reach out to any of us:

  • Doug Doetsch, Partner

+1 312 701 7653 +1 312 701 7653 ddoetsch@mayerbrown.com

  • Salim Jorge Saud Neto, Partner

+55 21 2127 4210 sjsaud@mayerbrown.com

  • Kelly B. Kramer, Partner

+1 202 263 3007 kkramer@mayerbrown.com

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