J&F Investimentos, the controlling shareholder of the world’s largest meatpacker, JBS, has agreed to pay a fine of $3.2bn for its involvement in one of Brazil’s biggest corruption scandals. Starting in December, they payment will be made over 25 years. The fine is higher than the $2.6bn paid by Brazilian building firm Odebrecht.
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.
Batista brothers testified that they spent $186 million in bribes for nearly 1,900 politicians in recent years. The politicians include former presidents Luiz Inacio Lula da Silva and Dilma Rousseff, who was impeached last year.
Joesley Batista, resigned as chairman and will leave the JBS board immediately. He will be replaced by Tarek Farahat, a former Procter & Gamble Co executive who is also a member of the JBS board. Wesley Batista resigned from the vice chairmanship of the board but he will remain as JBS Chief Executive Officer. His father, José Batista Sobrinho will become the vice chairman. Minority shareholders demanded that JBS should not foot the bill for any fine as they were not responsible for any corruption-related crimes.
Joesley Batista, left for New York after his resignation.
Brazil: Meat-packing giant JBS to pay record $3.2bn corruption fine.