Bribes for 1,829 candidates

Ricardo Saud, former Director of Institutional Relations at J&F Investimentos—the parent company of JBS—admitted that the company “donated bribes” to 1,829 candidates from 28 different political parties, as seen from a video published by Valor Econômico. According to his testimony in a plea bargain as part of Operation Car Wash (Operação Lava Jato), the illicit donations totaled nearly R$600 million (approximately US$ 193 million at the time), mostly in exchange for favors in the public sector. “Apart from these R$10, R$15 million here, the rest is all bribes. Everything has an act of office, everything has a promise, everything has something,” said Saud.

By |2025-04-27T12:03:14-03:0019/05/2017|Corporate Governance Problems|0 Comments

Joesley admits to bribes

In a video published by G1, Joesley Batista admitted to paying around R$400 million (approximately US$ 129 million at the time) in bribes to politicians, in cases that began with interventions in the board of directors of the Brazilian Development Bank (BNDES) in 2004 and, over time, expanded to the financing of electoral campaigns. According to Batista, the amount constituted bribes disguised as political donations. “There are official payments, cash 1, via political campaigns; there are cash 2 payments; there are payments via cash,” said Joesley in his plea bargain agreement, through which he sought to avoid the penalties he faced in various Federal Police operations and investigations by the Federal Public Prosecutor’s Office (Ministério Público Federal – MPF).

Operation Patmos

The Brazilian Federal Police arrested Andrea Neves, sister and advisor to former Minas Gerais governor Aécio Neves, as part of Operation Patmos, as reported by G1. According to the investigation, she allegedly requested money from Joesley Batista on her brother’s behalf to fund his multi-million-real legal defense against charges stemming from Operation Car Wash (Operação Lava Jato). The investigation originated from Joesley’s plea bargain, in which he claimed that Aécio had requested R$2 million (approximately US$ 644,000 at the time).

Joesley Day

The release of recordings by Joesley Batista involving then-president of Brazil Michel Temer triggered a political crisis and a sharp drop in the stock market—an episode that became known as “Joesley Day.” According to the recordings, published on the website of the newspaper O Globo, they were part of a plea bargain agreement in Operation Car Wash (Operação Lava Jato). Joesley and his brother, Wesley Batista, admitted to bribing nearly 2,000 politicians and confessed to corruption schemes, including paying bribes to the Brazilian Development Bank (BNDES) and influencing operations at Caixa Econômica Federal, a state-owned bank. As part of the plea deal—which included the payment of R$10.3 billion (around US$ 3.16 billion at that time)) over 25 years—they both avoided serious penalties. In 2023, Supreme Federal Court (STF) Justice Dias Toffoli suspended the remaining payments still owed by the company.

Operation Bullish

The Federal Police’s Operation Bullish investigated irregularities in transactions carried out by the Brazilian Development Bank (BNDES) during JBS’s acquisition of the U.S. company Pilgrim’s Pride and the incorporation of the Bertin meatpacking plant, along with Swift Argentina, Swift USA, National Beef, and Smithfield. The investigation, as reported by the Federal Public Prosecutor’s Office (Ministério Público Federal – MPF), indicated that JBS obtained public funds more easily after hiring consultants linked to former Finance Minister Antonio Palocci, in a scheme that also involved BNDES employees. In December 2019, the MPF requested compensation for damages caused by JBS and BNDES employees, totaling more than 21 billion Brazilian reais (around US$ 6.4 billion at that time). In 2024, however, Brazil’s Federal Court of Auditors (Tribunal de Contas da União – TCU) concluded that there was no evidence of irregularities in the bank’s operations.

By |2025-04-27T12:27:20-03:0012/05/2017|Corporate Governance Problems|0 Comments

Operation “Carne Fraca”

JBS and other companies in the sector were investigated for a scheme to bribe meatpacking inspectors, as part of Operation Carne Fraca from the Brazilian Federal Police. The scheme allowed the sale of rotten meat, the falsification of export documents, and deliberate failures in the inspection of meatpacking plants. The accusations against the companies included the use of chemicals to disguise spoiled meat, which led to a series of suspensions of Brazilian meat imports in multiple countries.

By |2025-04-27T12:28:05-03:0017/03/2017|Corporate Governance Problems|0 Comments

Operation Cui Bono

The Brazilian Federal Police’s Operation Cui Bono investigated loans granted by Caixa Econômica Federal to various companies, including Eldorado Celulose, owned by J&F Investimentos, the holding company of JBS. According to the Federal Public Prosecutor's Office, a group of politicians authorised loans from Caixa in exchange for bribes paid by the benefiting companies. Among the J&F facilitators were former minister Geddel Vieira Lima and former president of the Chamber of Deputies Eduardo Cunha.

By |2025-04-27T12:30:07-03:0013/01/2017|Corporate Governance Problems|0 Comments
Go to Top