The State Government of Rio de Janeiro sanctioned, on October 17, 2017, State Law No. 7.753/2017, which demands an integrity program for companies which execute contracts, joint ventures, arrangements, concessions or public-private partnerships with the direct, indirect or foundational public administration of the State of Rio de Janeiro, and with value limits superior to that of open bidding contest, being R$ 1.500.000,00 (one million and five hundred thousand reais) for construction and engineering services, and R$ 650.000,00 (six hundred and fifty thousand reais) for acquisitions and services, even in the manner of electronic bid, and with contracts which term of duration is equal or superior to 180 (one hundred and eighty) days.
The law applies to any kind of companies, corporations or simple companies , foundations, associations, entities, persons or foreign companies which have legal representation in national territory.
According to article 3 of the state law, the integrity program consists, within the ambit of the legal entity, of joint mechanisms and internal procedures of integrity, audit and encouragement to report irregularities and in the effective application of the code of ethics and conducts, policies and directives with the objective of detecting and ending deviations, frauds, irregularities and illicit acts performed against the public administration of the State of Rio de Janeiro.
Finally, article 4 of the law establishes that the effectiveness of the integrity program will be evaluated in accordance to similar parameters set forth in article 42 of Decree 8420/2015, which regulates the Brazilian anticorruption law.
Böing Gleich Advogados is at your disposal to provide further information regarding the new State Law and the structuring of an integrity program.
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