A fine of BRL10.3bn (US$3.1bn) awarded against the controlling shareholder of Brazil-based meat giant JBS, J&F Participacoes, could increase further as new corruption allegations are investigated, according to a report.
JBS confirmed last month that J&F had agreed to pay the fine under a “leniency agreement”, as part of a settlement deal under which the company agreed to “detail facts” about its role two police investigations, including the Carne Fraca or Weak Flesh probe, which allegedly involved payments by meat processing firms to inspectors to overlook unsanitary practices.
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However, according to Brazil’s O Estado de S. Paulo newspaper, prosecutor Ivan Marx, who is leading the other investigations – Bullish – is reportedly “re-assessing” the terms of the leniency deal, which could lead to the fine being increased if further corrupt practices are revealed.
The Bullish investigation had scrutinised suspected irregularities into the way state investment bank BNDES had approved support for JBS’ expansion.
Estado, which cited sources close to Marx, said the prosecutor believes there may have been “wrongdoings” involving J&F officials and others at JBS that have not yet to come to light.
The paper claimed “a new group of executives from the J&F-controlled business group will collaborate to complement the accusations already made with the attorney general’s office”. A list of the group “is under preparation”, Estado said.
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By GlobalDataThe paper, quoting sources close to the investigations, said “additional collaborations are necessary so that other officials, who know or have participated in confessed crimes, confirm what was reported” by informers to date.
Earlier this month, JBS announced the sale of its beef operations in three South American markets to companies controlled by local rival Minerva.
