Modification of publicly funded construction contracts is a major problem in Brazil. Under Brazilian law, the government is permitted to modify contracts unilaterally, based on the public interest. When this happens, the contracted company has the right to revised prices in order to maintain "financial and economic equilibrium." This creates obvious leeway for abuse.

Although it may seem early to talk about the 2016 Olympics in Brazil, discussion of corruption in connection with those games is already well under way. Brazilians deserve an honest, open public-works system, and now is the time for the government and industry to see that they get it. 

Matteson Ellis is a Foreign Corrupt Practices Act attorney who has investigated corruption for the World Bank and serves as special counsel to Washington, D.C.-based Miller & Chevalier Chartered. He can be reached at 202-626-1477.