Home Corruption J & F agree the biggest Brazil’s leniency agreement: US$3.2 billion

J & F agree the biggest Brazil’s leniency agreement: US$3.2 billion

Joesley Batista - owner of the company J & F

J&F Investimentos, controlling shareholder of the world´s largest meatpacker, JBS SA, agreed with Federal Prosecutors’ Office (MPF) late on Tuesday nigth to pay a 10.3 billion real, equivalent to $3.2 billion dólars for its participation in corruption scandals.

The agreement calls for the holding company owned by the Batista family will pay in the next 25 years R$8 billion in cash and the remaining to be paid through the financing of social programs. J&F was able to reduce the final value by 900 million reais from the initial 11.2 billion reais proposed by Brazilian prosecutors. J&F’s three previous proposals were rejected and the company replaced its lawyers earlier on Tuesday.

“The rest of the fine, R$2.3 billion, will be paid through social projects, especially in the areas of education, health and prevention of corruption,” according the statement released by the Prosecutor on Tuesday.

According to analysts, the total fine represents 5.62% of the holding’s revenues after taxes in 2016. In absolute terms, the amount represents more than the combined fines be paid by Odebrecht (R$3.28 billion), Brasken (R$3.1 billion), Andrade Gutierrez (R$1 billion) and Camargo Corrêa (R$700 million), companies also accused in the Car Wash investigations.

The accusations from J&F’s owners Joesley and Wesley Batista that they spent 600 million reais to bribe nearly 1,900 politicians in recent years threw Brazil in a political crisis that threatens to topple president Michel Temer. Pension funds and state-run banks invested in or extended loans to J&F companies in return for bribes paid by the Batista brothers, according to plea-deal testimony.

Joesley Batista is the key witness at the center of a corruption investigation against President Temer, after secretly recording a conversation in which the president seemed to condone bribing a potential witness. Temer denies wrongdoing.