Wednesday, May 31, 2017

JBS agrees to multi-billion-dollar fine

J&F, which holds controlling interest in JBS SA, will pay a fine of 10.3 Brazilian lira (about $4.4 billion Cdn) to settle bribery and corruption charges, says the Federal Prosecutors' Office.

The company has 25 years to pay at the rate of 5.62 per cent of annual revenue.

Pension funds that invested in JBS will get some of the money, the government will get some for a fund it runs to pay severance to workers and the federal bank and federal government will share most of the rest.

The brothers who control the company have admitted they bribed government lenders to obtain loans the company used to buy companies, vaulting it into one of the biggest beef packers in the world.

XL Foods Inc. of Alberta is one of the companies it bought. Many others are in the United States.

The settlement also includes about $986 million Cdn. for social projects focused on education, health and corruption prevention.