Owner of JBS assumes guilt in the US, will pay $ 128 million, and shares soar 9% – 10/14/2020


J&F, which owns JBS, pleaded guilty to violating US anti-corruption legislation and struck a deal with the US Department of Justice to pay about $ 128 million to the country’s authorities.

After the disclosure of the agreement on Wednesday (14), JBS ‘shares on the Brazilian Stock Exchange skyrocketed and closed the day up 9.2%, to R $ 21.48.

JBS, the largest meat processor in the world, says that the total amount of the agreed fine is about US $ 256.5 million, but 50% of that amount has already been settled with the Brazilian authorities and has been deducted from the total to be paid in USA.

Agreement is related to Lava Jato revelations

J&F pleaded guilty “for violating the United States Foreign Corrupt Practices Act (FCPA)”, according to the note.

According to US prosecutors, the amount of tuition fees paid by company executives J&F for senior government officials it exceeded $ 150 million. Prosecutors also said the company made a profit of $ 178 million from paying bribes.

In a note to the market, JBS said that the settlement in the USA is related to the same facts and conduct that led to the leniency agreement signed with the Federal Public Ministry in Brazil and the winning collaboration. These agreements here were signed by executives Wesley and Joesley Batista with the Attorney General’s Office, resulting from several investigations, including that of the Lava Jato operation.

Joesley Day

May 17, 2017 was known in the market as Joesley Day. On that date, the newspaper “O Globo” published a recording made by businessman Joesley Batista as part of his report. The recording showed signs of association of the then president Michel Temer with acts of corruption. The following day the stock market plummeted and the dollar rose.

The pressure for Temer to step down increased. He was denounced three times by the Attorney General’s Office while in office – the first president in history to go through this.

He remained in the post until the end of his term, but his project agenda was blocked, including the pension reform, given the need to defend himself against the process in Congress.

Another agreement provides for a $ 27 million fine

JBS says that it was not part of this agreement in the USA and will not bear the values, which will be the responsibility of J&F.

JBS also said on Wednesday that it signed another agreement, with the US capital market supervisory authority, SEC (equivalent to CVM in Brazil), which provides for the payment of a fine of approximately US $ 27 million.

This agreement is related to the failures of Pilgrim’s Pride, controlled by JBS, in recording its accounting information.

Pilgrim’s Pride said earlier that it agreed to pay a $ 110.5 million fine for creating restrictions on competition, which affected three contracts for the sale of broiler products to a customer in the United States.

JBS also said that, as part of the agreement with the SEC, it should provide clarification for three years on “the effectiveness of the anti-corruption policies, procedures, practices, internal controls and maintenance of records and financial reporting processes of JBS” and of any companies that are under the control of the group.

According to JBS, the agreement with the SEC ends any other legal pending of the company and its affiliates related to Pilgrim’s accounting.

* With Reuters


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