Brazil's J&F agrees to pay record $3.2 billion fine in leniency deal

Cornelia Mascio
Giugno 1, 2017

According to prosecutors this is the largest fine to be paid for corruption in the world.

J&F's penalty surpasses the $8.5 billion reais that Brazilian construction firm Odebrecht agreed to pay for its role in the political graft scandal convulsing Latin America's biggest economy, prosecutors said in statement late Tuesday.

The payments will start in December and J&F will have 25 years to make them, prosecutors say.

The fine JBS paid is said to represent kickbacks the company made to 1,829 Brazilian politicians.

A source inside JBS said the fine would not have a detrimental effect on the crisis-hit meatpacker, as it will be paid exclusively by J&F, meaning restructure or job cuts to JBS subsidiaries are unlikely at this early stage.

Joesley and Wesley Batista told prosecutors that J&F spent 600 million reais to bribe almost the nearly 1,900 politicians in recent years. That recording - which appears to show Temer condoning the payment of hush money to an imprisoned politician - leaked to media earlier this month, prompting protests in the streets and questions of whether Temer's tenure could survive the scandal.

The country's Supreme Court has approved an investigation into the allegations against the president.

Rousseff was impeached a year ago on breaking budgetary laws and Temer, her vice president, took over.

The recording and the revelation of kickbacks to more than 1,800 politicians are part of the plea bargain signed by the Joesley Batista and his brother Wesley, also a top executive at JBS.

Most of the fine J&F will pay will be divided among Brazil's development bank BNDES, FGTS workers' severance fund, two pension funds for employees of state-controlled companies and lender Caixa Econômica Federal. Other JBS executives in plea-bargain testimony accused Temer of taking almost $5 million in bribes from the company in recent years.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE