Bruno Calfat Advogados represents a business group in a Special Accounts Audit proceeding (TCE) currently underway at the Brazilian Federal Court of Accounts (TCU), which seeks to assess the regularity of funds released under a financing agreement executed with Caixa Econômica Federal, a public bank, for the implementation of an infrastructure project. The TCU Plenary unanimously accepted the arguments presented by the group’s defense, dismissing the imposition of a multi-billion reais debt sought in the TCE and excluding the contracting companies from the proceedings.
By accepting the defense’s argument, TCU recognized that the questioned amount had already been included in the business group’s judicial recovery plan, which was endorsed by the creditor institution, making it inappropriate for the TCU to initiate an autonomous collection procedure, in accordance with the principles of legal certainty and separation of powers. In the same proceeding, the TCU imposed fines on former managers of the financial institution for allegedly failing to comply with legal regulations regarding the granting of financing for infrastructure projects.
The decision, in addition to recognizing the absence of irregularities on the part of the represented companies, sets a precedent regarding the analysis of private companies’ liability in credit operations involving public funds.