Law No 8429 - Administrative Improbity 1992 (Brazil) UT

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**Unofficial Translation**

Presidency of the Republic Civil Cabinet Subchefia for Legal Affairs Law No. 8429 of 2 June 1992. Provides for penalties applicable to public officials in cases of illicit enrichment in the exercise of office, position, employment or function in the public direct, indirect or foundational and other measures. THE PRESIDENT OF THE REPUBLIC, I know that the Congress decrees and I sanction the following law: Chapter I General Provisions Article 1 The acts of misconduct committed by any public officer, servant or not, against the direct, indirect or foundational of any of the Powers of the Union, States, Federal District, Municipalities, Territory of the merged company public property or entity for whose creation or costing the exchequer busy or there is competing with more than fifty percent of the assets or annual revenue, will be punished in accordance with this law. Single paragraph. They are also subject to the penalties of this law acts of misconduct charged against the equity of the entity that receives the subsidy, benefit or incentive or tax credit, the public agency as well as to those whose creation and costing the exchequer there busy or win with less than fifty percent of the assets or annual revenue, limited in these cases, the sanction of illicit assets to rebound on the contribution from the public purse. Article 2: Considers up public officer for the purposes of this law, whoever plays, albeit transiently or without remuneration, by election, appointment, assignment, hiring or any other form of endowment or bond, office, position, employment function or entities mentioned in the previous article. Article 3: The provisions of this Act shall apply, mutatis mutandis, to those who, although not a public agent, induces or contributes to the performance of the act of misconduct or to benefit him in any way directly or indirectly. 4 ° The public officials of any level or hierarchy are required to ensure the strict observance of the principles of legality, impersonality, morality and advertising in dealing with matters that are affects. Occurring art. 5 damage to public property by act or omission, willful or culpable, agent or third party, will give the full compensation. Section 6 ° In the case of illicit enrichment, lose the public official or third party beneficiary goods or values ​ added to their heritage. Article 7 When the act of misconduct causing injury to public property or give rise illicit enrichment, it will be the administrative authority responsible for the investigation to prosecutors represent, to the unavailability of goods indicted. Single paragraph. The unavailability referred to the head of this article will be on the property to ensure full compensation for the damage, or the equity increase resulting from illicit enrichment. Section 8 ° The successor of him who cause damage to public property or unlawfully enrich themselves subject to the injunctions of the law to the limit of the value of the inheritance. CHAPTER II Of Administrative Acts of Impropriety Section I Of Impropriety of Administrative Acts that Matter Illicit Enrichment

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Art. 9 constitutes an act of administrative misconduct importing illicit enrichment derive any undue pecuniary advantage by virtue of holding a position, office, function, activity or employment in the entities mentioned in art. 1 of this law, and in particular: I - receive to themselves or others, money, movable or immovable, or any other economic benefit, directly or indirectly, as a commission, percentage, gift or present who has an interest, direct or indirect, that may be achieved or backed by action or omission arising out of duties of public servant; II - realize economic benefit, directly or indirectly, to facilitate the purchase, exchange or lease of movable or immovable property, or the hiring of services by the entities referred to in art. 1 ° by price higher than the market value; III - realize economic benefit, directly or indirectly, to facilitate the sale, exchange or lease of public property or the provision of services by the government entity at a price below the market value; IV - to use, in particular work or service, vehicles, machinery, equipment or material of any nature, owned or available to any of the entities mentioned in art. 1 of this law, as well as the work of public servants, employees or contractors of such entities; V - receive economic advantage whatsoever, direct or indirect, to tolerate the exploitation or the practice of gambling, of pimping, drug trafficking, smuggling, usury or any other unlawful activity, or accepts a promise of such an advantage; VI - receive economic advantage of any kind, directly or indirectly, to make false statement about measurement or evaluation in public works or any other service or on quantity, weight, measurement, quality or characteristic of the goods or goods supplied to any of the entities mentioned at art. 1 of this Act; VII - acquiring for themselves or others, in the exercise of office, position, employment or public service, property of any kind whose value is disproportionate to the evolution of the income or assets of the public servant; VIII - to accept employment, commission or consulting activity or exercise advice for individual or entity that has an interest capable of being achieved or sustained by action or omission arising out of duties of the public official during the activity; IX - realize economic advantage to broker the release or application of public funds of any kind; X - receive economic advantage of any kind, directly or indirectly, to omit any official act, providence or statement that is required; XI - embed in any way, its heritage assets, income, funds or asset values ​ members of the collection of the entities mentioned in art. 1 of that law; XII - use to their advantage, assets, income, funds or asset values ​ members of the collection of the entities mentioned in art. 1 of that law. Section II Of Impropriety of Administrative Acts Causing Injury to the Treasury Article 10. Constitutes an act of administrative misconduct that cause injury to the public treasury any act or omission, willful or culpable, giving rise patrimonial loss, misuse, misappropriation, or malbaratamento dilapidation of the property or assets of the entities referred to in art. 1 of this law, and in particular: I - facilitate or compete in any way for the merger to shareholders particular person or entity, assets, income, funds or asset values ​ members of the collection of the entities mentioned in art. 1 of this Act; II - allow or contribute to that person or entity to use private property, income, funds or asset values ​ members of the collection of the entities mentioned in art. 1 of this law, without observing legal formalities or regulations applicable to the species; III - give the person or entity to entity and depersonalized, albeit educational purposes or assists, assets, income, funds or securities of any of the assets of the entities mentioned in art. 1 of this law, without legal formalities and regulations applicable to the species; IV - enabling or facilitating the sale, exchange or lease of well integral heritage of any of the entities referred www.planalto.gov .br/cciv il_03/leis/L8429compilado.htm


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to in art. 1 of this Act, or the provision of service on their part, at a price lower than the market; V - enabling or facilitating the purchase, exchange or lease of goods or services at a price higher than the market; VI - conduct financial transaction without observing the legal rules and regulations or to accept insufficient collateral or inidônea; VII - grant administrative or fiscal benefit without observing legal formalities or regulations applicable to the species; VIII - frustrate the legality of the bidding process or dismiss it improperly; IX - order or allow for unauthorized charges by law or regulation; X - act negligently or in the collection of income tax, as well as with regard to the preservation of public property; XI - releasing public funds without strict compliance with the relevant standards or affect in any way for their implementation uneven; XII - enable, facilitate or compete for that third unlawfully enrich themselves; XIII - allow the use, in particular work or service, vehicles, machinery, equipment or material of any nature, owned or available to any of the entities mentioned in art. 1 of this law, as well as the work of public servants, employees or contractors of such entities. XIV - enter into a contract or other instrument that has as its object the provision of public services through the associated management without observing the formalities prescribed by law; (Included by Law No. 11,107, 2005) XV - enter into contract apportionment of public consortium and without sufficient prior budgetary allocation, or without observing the formalities prescribed by law. (Included by Law No. 11,107, 2005) Section III Of Impropriety of Administrative Acts that violate the Principles of Public Administration Article 11. Constitutes an act of administrative misconduct that undermines the principles of public administration any action or omission that violates the duties of honesty, impartiality, legality, and loyalty to institutions, and notably: I - practice act aiming purpose prohibited by law or regulation or different from that provided in the rule of jurisdiction; II - delay or abstain from doing, wrongfully, any official act; III - revealing fact or circumstance that has science because of assignments and that must remain a secret; IV - denying publicity to official acts; V - frustrate the lawfulness of tender; VI - no longer accountable when you are forced to do so; VII - disclose or allow to reach the knowledge of third party prior to its official release, content of political or economic measure can affect the price of commodity, good or service. CHAPTER III Of Feathers Article 12. Regardless of criminal sanctions, civil and administrative provisions in specific legislation, is responsible for the act of misconduct subject to the following penalties, which can be applied individually or cumulatively, according to the gravity of fact: (Amended by Law No. 12,120, of 2009). I - in the case of art. 9, or loss of property values ​ increased unlawfully the property, full compensation of the www.planalto.gov .br/cciv il_03/leis/L8429compilado.htm


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damage, if any, loss of civil service, suspension of political rights for eight to ten years, payment of civil penalty of up to three times the value of the equity increase and prohibition from contracting with the government or receive benefits or tax incentives or credit, directly or indirectly, even through the legal entity of which he is the majority shareholder for a period of ten years; II - in the case of art. 10, full compensation of damages or loss of property values ​ increased illicitly to shareholders, if run this circumstance, loss of civil service, suspension of political rights for five to eight years, payment of civil penalty of up to twice the value of the damage and prohibition from contracting with the government or receive benefits or tax incentives or credit, directly or indirectly, even through the legal entity of which he is the majority shareholder for a period of five years; III - in the case of art. 11, full compensation of the damage, if any, loss of civil service, suspension of political rights for three to five years, payment of civil penalty of up to one hundred times the amount of remuneration received by the agent and prohibition from contracting with the government or receive benefits or tax incentives or credit, directly or indirectly, even through the legal entity of which he is the majority shareholder for a period of three years. Single paragraph. In assessing penalties provided for in this law the judge will take into account the extent of damage, as well as patrimonial advantage obtained by the agent. CHAPTER IV The Declaration of Goods Article 13. The possession and exercise of public official are conditioned to submit a statement of assets and values ​ that make up its private equity, to be filed with the competent service personnel. (Regulation) (Regulation) § 1 The statement include real estate, furniture, livestock, cash, bonds, stocks, and any other kind of asset and equity values, located in the country or abroad, and, when appropriate, cover goods and asset values ​ of spouse or partner, children and other people who live under the economic dependence of the declarant, excluding only the objects and household utensils. § 2 The declaration of assets will be annually updated and the date on which the public official to leave the exercise of his office, position, employment or function. § 3 shall be punished with the penalty of dismissal, the good of the public service, without prejudice to other sanctions, the public official who refuses to give statement of assets within the specified period, or providing false. § 4 The declarant, at its discretion, may deliver a copy of the annual declaration of assets submitted to the Federal Revenue Service in accordance the law of Income Tax and earnings of any nature, with the necessary upgrades to meet the requirement set forth in the caption and § 2 of this article. CHAPTER V Of Administrative Procedure and Judicial Process Article 14. Anyone could represent the competent administrative authority to be established investigation to ascertain the performance of an act of misconduct. § 1 The representation, which is writing or reduced to writing and signed, will contain the qualifications of the representative, the information about the fact and its authorship and the indication of evidence brought to its attention. § 2 The administrative authority rejects the representation, by reasoned order, if it does not contain the procedures established in § 1 of this article. The rejection does not preclude the representation to the Public Prosecutor, pursuant to art. 22 of this law. § 3 Attended the requirements of representation, the authority will determine the immediate investigation of the facts that, when it comes to federal employees, will be computed in the manner provided in arts. 148-182 of Law No. 8112 of December 11, 1990 and, in the case of military server, according to their disciplinary regulations. Article 15. The prosecuting committee shall inform the Prosecutor and the Court or Board of Auditors of the existence of administrative procedure to determine the performance of an act of misconduct. Single paragraph. The Public Prosecutor or the Court or Board of Auditors may, upon petition, designate a www.planalto.gov .br/cciv il_03/leis/L8429compilado.htm

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representative to accompany the administrative procedure. Article 16. Having founded indicia of responsibility, the committee represent the public prosecutor or the attorney for the agency that requires the competent court to decree the sequestration of property, agent or third party who has enriched or unlawfully caused damage to public property. § 1 The application for sequestration will be processed in accordance with the provisions of art. 822 and 825 of the Code of Civil Procedure . § 2 Where appropriate, the request will include research, examination and blocking of assets, bank accounts and investments held by indicted abroad, according to the law and international treaties. Article 17. The main action, which will have the ordinary rite, will be proposed by the prosecutor or by the legal entity concerned, within thirty days of the execution of the injunction. § 1 is prohibited transaction, arrangement or compromise the actions of the caput. § 2 The Treasury, as appropriate, promote the actions necessary to supplement the compensation of public assets. § 3 the Where the main action have been proposed by prosecutors, apply, where applicable, the provisions of § 3 the art. 6 The Law of the 4717, to June 29, 1965 . (Amended by Law No. 9366, 1996) § 4 The prosecution if they do not intervene in the proceedings as a party must act as tax law, under penalty of nullity. § 5 The A to prevent the filing of judgment jurisdiction for all actions subsequently instituted possessing the same cause of action or the same object. (Included by Provisional Measure No. 2180-35, 2001) § 6 the action will be accompanied with documents containing justification or sufficient evidence of the existence of the act of misconduct or with reasonable grounds of inability to present any such evidence, subject to applicable law, including the provisions given in the arts. 16 to 18 of the Civil Procedure Code. (Included by Provisional Measure No. 2225-45, 2001) § 7 the initial Being in due form, the judge will order autuá it and will order the required notification, to provide written statement, which may be accompanied with documents and evidence, within fifteen days. (Included by Provisional No. 2225-45, 2001) § 8 the receipt of the demonstration, the judge, within thirty days, in a reasoned decision, reject the action, if convinced of the absence of the act of misconduct, the dismissal of the action or the inadequacy of the route chosen. (Included by Provisional Measure No. 2225-45, 2001) § 9 the receipt of the application, the defendant will be summoned to present its defense. (Included by Provisional Measure No. 2225-45, 2001) § 10. The decision to receive the application, it will be interlocutory appeal. (Included by Provisional Measure No. 2225-45, 2001) § 11. At any stage of the process, recognized the inadequacy of the action of misconduct, the court shall terminate the case without prejudice. (Included by Provisional Measure No. 2225-45, 2001) § 12. Applies to inquiries or statements made ​ in proceedings governed by this Act the provisions of art. 221, caption and § 1 to the Code of Criminal Procedure. (Included by Provisional Measure No. 2225-45, 2001) Article 18. The ruling that upheld civil action to repair damage or the confiscation of illicit assets accruing determine payment or reversal of assets, as applicable, on behalf of the legal entity harmed by the offense. CHAPTER VI Penal Provisions Article 19. Crime constitutes a representation by act of misconduct against public officer or third party beneficiary, when the complainant knows the innocent. www.planalto.gov .br/cciv il_03/leis/L8429compilado.htm

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Penalty: imprisonment of six to ten months and a fine. Single paragraph. Besides the penalty, the complainant is subject to indemnify denounced by damage, moral or image there are provoked. Article 20. The loss of public and suspension of political rights only become effective with the final judgment of conviction. Single paragraph. The judicial or administrative authority may order the removal of the public official of the office, employment or position, without prejudice to compensation when the measure becomes necessary to procedural instruction. Article 21. The sanctions provided for in this law is independent: I - the actual occurrence of damage to public property, except as to the worth of compensation; (Amended by Law No. 12,120, 2009). II - the approval or rejection of the accounts by the board of internal control or the Court or Board of Auditors. Article 22. To ascertain any unlawful under this Act, the Attorney General, ex officio, the application of administrative authority or by representation formulated in accordance with the provisions of art. 14, may request the establishment of a police investigation or administrative proceeding. CHAPTER VII Prescription Article 23. The actions to take effect the penalties provided in this Act may be proposed: I - until five years after the end of the year mandate, of commissioned office or position of trust; II - within the limitations period provided by law for specific disciplinary offenses punishable by dismissal from the public service as well, in cases of exercising effective position or employment. CHAPTER VIII Final Provisions Article 24. This law shall enter into force on the date of its publication. Article 25. Are hereby repealed Laws Nos. 3164, to June 1, 1957 , and 3502, to December 21, 1958 and other provisions to the contrary. Rio de Janeiro, June 2, 1992; 171 째 and 104 째 of Independence of the Republic. Fernando Collor Celio Borja This does not replace the text published in the Gazette of 03.06.1992

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