Court authorises JBS owners to occupy executive positions

Brazil
Published:  01 June, 2020

Brazil’s Superior Court of Justice (STJ) has authorised brothers Joesley and Wesley Batista to occupy executive functions in the companies owned by J&F holdings, which controls meat processing giant JBS.

The order was announced on May 26 with immediate effect. "An injustice that lasted for two and a half years was corrected. The court recognised the illegality of the situation, preventing the continuation of an unreasonable injunction", Pierpaolo Bottini, who represents the Batista family told local media. Allegedly, the STJ based the decision to release Joesley and Wesley on three main facts; compliance with rules, collaboration with the courts and the R$10.3 billion (US$1.92 billion) leniency agreement. The magistrate said that fulfilling this value is not easy and requires a "maximum commitment" from companies to produce this capital.

The meatpacker’s corruption scandal broke out in the first half of 2017, resulting in the arrest of Joesley Batista, owner of JBS, and other executives. J&F had agreed to pay R$10.3 billion (US$2.66 billion) as part of a leniency deal to protect JBS and other businesses from charges. It also committed to work with third-party forensic firms to scrutinise past transactions while implementing a compliance programme to avoid new illicit acts. To pay for the leniency agreement, J&F asset sales included footwear manufacturing Alpargatas, poultry giant Moy Park, paper and pulp producer Eldorado and power lines supplier Brookfield.

Sources: Investing