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BNDES Unduly Paid 20% More for JBS Shares, Says Federal Accounting Court

10/18/2017 - 11h37

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FÁBIO FABRINI
FROM BRASÍLIA

An audit of the Federal Accounting Court concluded that Brazil's national development bank, BNDES, unduly paid 20% more for JBS shares in an operation to support the purchase of the National Beef Packing and the meatpacking division of Smithfield Foods, both in the United States.

The report on the case, obtained by Folha, indicates "damage to the treasury" of at least R$ 303 million (US$ 95 million) in the deal, made in 2008. The trial of the case is scheduled for this Wednesday (18).

According to the court's investigation, the bank had a loss of R$ 285.6 million (US$ 89 million) buying the stake in the company of the brothers Joesley and Wesley Batista.

In addition, it failed to obtain R$ 18.3 million (US$ 5.6 million) in dividends, as it could have bought a larger number of shares paying the "fair price". Values are updated to July.

The report was completed at the end of September and distributed on Monday (16) to the Federal Accounting Court's ministers.

The investigation proposes that the court hold Joesley Batista, former Finance minister Guido Mantega and businessman Victor Garcia Sandri, appointed as a friend of Mantega, liable to the alleged losses.

The auditors concluded, based on the JBS plea bargain deal, that Batista, Mantega, and Sandri were criminally associated to give the company advantages.

Translated by MARINA DELLA VALLE

Read the article in the original language

Paulo Whitaker - 1.jun.2017/Reuters
General view of Brazilian meatpacker JBS SA in the city of Jundiai, Brazil
General view of Brazilian meatpacker JBS SA in the city of Jundiai, Brazil

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