News and Business
Brazil’s Administrative Improbity Law: changes published without vetoes
Modifications stem from bill presented to House of Representatives three years ago
On October 26, 2021, a new law amending Brazil’s 1992 Adminstrative Improbity Law was published without vetoes. Law 14,230/2021 is the result of a draft bill prepared by a committee of jurists that was presented before Brazil’s House of Representatives in 2018.
One of the main changes concerns the removal of sanctions for culpable liability for acts resulting in loss to the public treasury. As a result, any losses the treasury suffers due to imprudence, malpractice or negligence can no longer be resolved by filing administrative improbity lawsuits.
Another important modification relates to how intent is defined in cases of wrongful conduct – previously, there had been a lack of clarity regarding this point in the Supreme Court of Justice’s (STJ) case law. It is now necessary to prove that the defendant was duly aware of the illegality of their conduct when it was carried out to establish intent, rather than simply prove their awareness of the conduct and its result.
Furthermore, now only the Public Prosecutor’s Office may file lawsuits for administrative acts provided for in the new law. However, injured public entities may still intervene via the Public Prosecutor’s Office in relation to the execution of civil non-prosecution agreements (ANPCs).
Click here to see other changes introduced by the new law (available in English).
For more information on the subject, please contact Mattos Filho’s Litigation and Arbitration, Compliance and Corporate Ethics and Administrative Law practice areas.
