JBS SA adheres to leniency agreement
Sept. 7, 2017
by Erica Shaffer
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J&F Investimentos is responsible for paying the fine levied by federal prosecutors.
SÃO PAULO, Brazil – JBS SA formally signed an agreement to adhere to the terms of a leniency agreement between parent company J&F Investimentos SA and the Brazilian federal prosecutor’s office.
The agreement includes payments made solely by J&F over 25 years to equal R$10.3 billion (US$3.18 billion) as it relates to the Bullish and Weak Flesh investigations, bribes paid by JBS to Brazil’s former and current presidents and meat inspectors along with questionable loans made to JBS by the National Economic and Social Development Bank (BNDES) through its subsidiary BNDESPAR.
“JBS’ management believes that the company’s formal adherence to the leniency agreement ensures the best interests of the company, protecting it from any financial impact in connection with the terms of the leniency agreement, for which J&F has taken full responsibility,” the company said in a securities filing.
“By adhering to this leniency agreement, JBS strengthens its compliance and corporate governance efforts and reinforces its commitment to integrity, while protecting value for all of its shareholders.”
Separately, on Sept. 4, Prosecutor General Rodrigo Janot said the plea deal his office made with Joesley and Wesley Batista could be partially revoked after a recording surfaced of Joesley Batista and another individual discussing crimes not covered in the plea agreement.
In May, seven executives of JBS, including Wesley and Joesley Batista, reached a plea agreement with federal prosecutors in exchange for their cooperation into a wide-ranging bribery and corruption investigation. Under the agreement, the executives were given 120 days to gather and hand over to prosecutors any evidence related to alleged bribes of politicians and other government officials. The trove of evidence included a four-hour recording of Joesley Batista and another person discussing alleged “administrative impropriety” by a former federal prosecutor, Marcelo Miller. Janot said this information was omitted in previous discussions.
In addition to cooperating with federal prosecutors, the Batistas were ordered to pay a fine of R$225 million (US$67.93 million).