JBS parent company tries to reduce fine of BRL 10.3 billion – 08/10/2023 – Market

J&F Investimentos, the controlling shareholder of the world’s biggest meat processor JBS, is seeking to negotiate a reduction in the 10.3 billion reais fine it agreed to pay in 2017 for its role in corruption scandals, three sources with knowledge said. of the case.

But a federal prosecutor is appealing a decision by another prosecutor who, in May, agreed to reduce J&F’s fine to 3.5 billion reais, and the outcome is unclear, a spokesman for his office said. The company did not comment, as the case is under secrecy.

This is the biggest fine in the country’s history, and comes after leniency agreements and award-winning contracts entered into by J&F Investimentos and its founders, the brothers Joesley and Wesley Batista, who confessed to operating a political corruption scheme.

A source with access to court documents said a three-member chamber of the Federal Public Ministry, led by prosecutor Ronaldo Albo, agreed to reduce the fine due to alleged legal and accounting errors committed in 2017, although J&F received only eight years. to pay the penalty instead of the original 25 years.

A spokesman for the Public Ministry of the Federal District said that the reduction of the fine was not approved by the Justice, and a second prosecutor, Carlos Martins, seeks to annul the decision.

“It has not yet been ratified, attorney Carlos Martins appealed to the Institutional Council, seeking retraction in the Chamber itself”, said the spokesperson.

According to sources familiar with the case, the company will continue to appeal for a further reduction in the fine and has filed an appeal.

The source with knowledge of the documents said J&F expects to reduce the fine to R$1 billion to be paid over 25 years.

The source added that the original fine was miscalculated based on the company’s global revenues, which prosecutors in Brazil have no way of knowing because it is outside their jurisdiction.

“J&F will continue with the case in court so that all these factors are taken into account and the fine is corrected,” the source said.