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Metrogate | “Marked Cards,” Says Folha

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Source: Folha de S.Paulo

An exchange of e-mails among Siemens executives indicate that companies had prior access to the plans of the CPTM for four auctions held by the state government in 2004 — during the second term of Geraldo Alckmin (PSDB) as governor.

A document in the possession of federal antitrust authorities to which the Folha had access show that even before the publication of the conditions for the auction, the companies were already discussing how to divide up the  Boa Viagem program, launched by Alckmin and designed to refurbish, renovate and modernize the trains.

On November 24, and titled “Acquisition Planned by CPTM in Brazil,” an e-mail sent by a Siemens exec detailed how the company wish to divide up the contracts among the major suppliers. The first public announcement of the auctions were not made until two days later.

“The various reforms should go to various suppliers. The main goal of the  CPTM is to assign the complete package to four major suppliers  (Alstom, Siemens, Bombardier and T’Trans). In our case, we can count on  Iesa and  MGE as subcontractors”, the e-mail, signed by executive Marcos Missawa, said.

[Link] The other side: State denies ever discussing project with contractors

The e-mails also describe meetings “attended by the four firms aforementioned,” and said that Siemens could guarantee a contract of R$ 85 million in the auction. He added: “We continue to develop the deadline for the auction with the other firms and with the CPTM. We hear that the public tenders should be published in the coming weeks.”

Six days after the first e-mail, on November 30, Peter Grolitz, another Siemens exec, sends a new message according to which more information on the competition would be available on December 3.  Once again, the negotiators said they possessed prior information about CPTM.

The four auctions were held in August 2005. The four companies referred to in the Siemens e-mails,  chosen by the CPTM to lead the project, were the winners.

In May, Siemens made a deal with Brazilian authorities in which it denounced the existence of a cartel in auctions related to the subway system. In exchange, Siemens hopes to avoid punishment for formation of a cartel.

According to a document by CADE, the antitrust authority,  the cartel created for the Boa Viagem project divided up the bids.

E-mails by Siemens execs indicate that before the public tenders were published, the companies had already met to divide up the various lots.

Along with the major players mentioned by CPTM, the “group” also included IESA, MGE, Temoinsa,  Tejofran and MPE.

In the bidding process, all of the participants in the scheme were successful in winning parts of the program, either by direct competition or by subcontracting.

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