Brasília, March 19, 2025 — The Organization of American States (OAS) published this Wednesday (19) its report on the 6th Evaluation Round of Brazil regarding the implementation of the Inter-American Convention against Corruption. In the document, the organization states that the annulment of Odebrecht’s evidence and the renegotiation of leniency agreements could “undermine public trust” and “contribute to a sense of legal uncertainty”. 

The Expert Commission of the Mechanism for Follow-Up on the Implementation of the Inter-American Convention against Corruption (MESICIC), responsible for the report, highlighted decisions by Supreme Court Justice Dias Toffoli, who, in September 2023, annulled all evidence from Odebrecht’s (now Novonor) leniency agreement and, in February 2024, suspended the payment of the R$ 8.5 billion fine imposed on the company as part of its leniency agreement with the Federal Public Prosecutor’s Office (MPF). These decisions were referenced in the section of the report analyzing Brazil’s compliance with Article VIII of the Inter-American Convention against Corruption, which addresses transnational bribery. 

Evaluation highlights 

The evaluators concluded that Brazil has satisfactorily implemented the recommendations made by MESICIC regarding transnational bribery in the previous evaluation (referring to the 3rd round in 2011), citing legislative advancements and positive actions by the Office of the Comptroller General (CGU), the Federal Police (PF), and the Federal Public Prosecutor’s Office (MPF). However, it mentions the decisions by Justice Dias Toffoli to annul the evidence from Odebrecht’s leniency agreement and, months later, to suspend the R$ 8.5 billion fine imposed on the company. Additionally, concerns were raised about the ongoing renegotiation of the agreements, initiated following the legal action by the PSOL, PCdoB, and Solidariedade parties. The evaluators noted that these cases “reveal challenges to leniency agreements” and may create “uncertainty and potential delays in enforcement”. 

In this regard, the commission recommends that Brazil consider “conducting an assessment of the implementation of leniency agreements, in order to identify challenges and take corrective measures”. 

International repercussions of monocratic decisions 

According to Guilherme France, Research and Advocacy Manager at Transparency International – Brazil, who contributed to the MESICIC evaluation process, this is not the first time that monocratic decisions by Minister Dias Toffoli have been negatively highlighted in reports on Brazil’s compliance with international anti-corruption conventions. France explains that “as early as 2023, the unilateral annulment of Odebrecht’s evidence was cited by the OECD Anti-Bribery Working Group as evidence of non-compliance with the Convention on Combating Bribery of Foreign Public Officials, for which Brazil will have to provide explanations during the group’s plenary meeting in October this year”. 

Recently, within the OAS framework, but through the Inter-American Commission on Human Rights (IACHR), Transparency International, in partnership with other human rights organizations, requested a thematic hearing on the dismantling of anti-corruption efforts in Brazil and Latin America. In March, during the hearing, Transparency International – Brazil denounced the severe consequences of impunity and human rights violations on a continental scale stemming from Minister Dias Toffoli’s decisions. 

Despite being a ruling by a single judge that invalidated evidence from the largest transnational corruption scheme in history, leading to over a hundred annulled convictions in Brazil and affecting cases in multiple countries, appeals against the decision have not been decided on by the Supreme Court even though they were filed 18 months ago. 

Lack of information in leniency agreements 

Regarding leniency agreements, the MESICIC report, citing official data, highlighted that out of the R$ 203 million owed for foreign bribery by the three companies  that signed leniency agreements — Nova Participações (formerly Engevix), Novonor (formerly Odebrecht), and OAS— only one-fifth of the amount, approximately R$ 40.9 million, has been recovered. 

The evaluators also expressed concern over the lack of public information regarding the illicit acts committed by companies that enter into leniency agreements and recommended that Brazil publish: “a public summary of the main facts of a leniency agreement involving transnational bribery, including the conduct identified as transnational bribery, the portion of fines attributed to such conduct, when possible, and the compliance measures being implemented”. According to the commission, providing a minimum set of public information could help other entities identify and address similar issues in their operations while also offering incentives for companies to cooperate. 

“The lack of proper regulation regarding the transparency of leniency agreements in Brazil prevents any public oversight of the compliance, proportionality, and enforcement of agreements signed between authorities and criminals. The Odebrecht agreements are a drastic example. For nearly a decade, information about the transnational bribery confessed by the company in over a dozen countries has remained under secrecy, and with the recent annulments, it is possible that this information will never come to light. It is unworthy for Brazil to become a graveyard for evidence of transnational corruption” says Bruno Brandão, Executive Director of Transparency International – Brazil. 

Additional recommendations 

Emphasizing the need for greater coordination among institutions involved in combating transnational bribery, the report highlights that while the Federal Public Prosecutor’s Office (MPF) plays a key role in this process, it has not joined the Technical Cooperation Agreement signed in 2020 by the Office of the Comptroller General (CGU), the Attorney General’s Office (AGU), the Federal Court of Accounts (TCU), and the Federal Police, under the supervision of the Supreme Federal Court (STF). 

Additionally, the report recommends that Brazil criminalize illicit enrichment as part of its obligation under the Inter-American Convention against Corruption. In 2018, Transparency International – Brazil led a collective effort involving over 200 experts, which resulted in 70 proposals for legal and institutional improvements aimed at preventing and combating corruption. Among these proposals there was a bill to criminalize illicit enrichment by public officials (New Anti-Corruption Measure No. 23). 

Inter-American Convention against Corruption 

The MESICIC report, which analyzes the implementation of the Inter-American Convention against Corruption, was approved at the 43rd meeting of the Commission of Experts, held in Washington, United States, from March 10 to 13.  

In October 2024, the Commission of Experts responsible for this evaluation visited Brazil for an on-site assessment, during which they met with representatives of public bodies and members of civil society organizations. On that occasion, Transparency International participated in the meetings and submitted a report highlighting the main challenges in combating transnational bribery in Brazil. 

The Inter-American Convention against Corruption was signed in 1996 and ratified by Brazil in 2002. Along with the UN Convention against Corruption and the OECD Anti-Bribery Convention, it forms part of the international legal framework that promotes the fight against corruption worldwide. 

MESICIC is the tool used to assess how the signatory countries have advanced in implementing this convention. Brazil has already undergone six rounds of evaluation, each focusing on specific provisions. The sixth report addressed topics such as bank secrecy, the prohibition or prevention of favorable tax treatment for expenses incurred in violation of anti-corruption laws, the prevention of bribery of both national and foreign public officials, foreign bribery, illicit enrichment, and extradition. The implementation of the recommendations presented in this sixth report will be evaluated in future rounds. 

Although the Inter-American Convention against Corruption does not provide for direct sanction mechanisms in cases of non-compliance, it is legally binding. Therefore, MESICIC review reports, in addition to guiding anti-corruption public policies, may support legal actions at both the national and international levels. 

Press contact 

Johanna Nublat — [email protected] and + 55 (61) 99625-0018