Bruno Jorge Fagali is a Brazilian lawyer and a specialist in Administrative Law from FGV and PUC. Bruno Jorge Fagali holds a Masters in State Law from USP and works in the area of administrative law with focus on controlling the area of Public Administration (specifically preventing acts of administrative violations and misconduct).
The three biggest Brazilian political corruption investigations are Mensalão, Lava-Jato and Acrônimo. Bruno Jorge Fagali says that the common element is that the all involve advertising companies.
Bruno Jorge Fagali tells us about five possible warning signs pointing to possible corruption. Bruno Jorge Fagali points out that these signs are not definite indicators that something illicit is going on, but that it is important to increase control and surveillance in the presence of all or any of these red flags.
The first red flag for corruption is the intermediation of advertising companies for payments directed to different kinds of media for services. This intermediation can result in advertising companies not charging the advertiser or not passing the money on to the media company.
The second red flag is the media managing criteria. When an advertising agency is in charge, it can propose to the advertiser, which kinds of media are to be used. This in and of itself is a fertile territory for misconduct and anti-ethical behavior. To avoid this, advertising agencies must be required to present to the advertiser a study that states costs, strategies and tactics and kind of media to be used.
The third red flag is an incentive plan where a commission is paid for the volume of advertising in specific media. This could result in the advertising company pushing a specific kind of media.
The fourth red flag is a relationship of the advertising company with the advertiser. This can allow to the advertiser to give presents and gifts to the advertising company in order to get a better deal.
The fifth red flag is the advertising company charging services and supply fees to the media company. This is limited to 15% according to Brazilian law and frequently overlooked by media companies.