Brazil's Supreme Court Halts $2 Billion Penalty Against JBS Owner

21 Dec, 2023

Brazil's Supreme Court Halts $2 Billion Penalty Against JBS Owner

In a recent development, a Brazilian Supreme Court justice has taken a significant step by suspending a hefty 10.3 billion real ($2.10 billion) fine imposed on J&F, the holding company overseeing JBS, the global giant in the meatpacking industry. This decision, which was witnessed by Reuters on Wednesday, has not been publicly disclosed, and the court is yet to respond to requests for further insights. Equally, J&F has chosen not to comment on this current turn of events.

This substantial fine was initially agreed upon by J&F back in 2017, forming part of a broader leniency agreement linked to the company's involvement in corruption scandals. Revelations made through confessions by J&F's founders, Joesley and Wesley Batista, under a plea bargain deal, shed light on their involvement in a political bribery ring.

The plea made by J&F to halt the fine was rooted in allegations of bias against prosecutors, asserting that their actions were distinctly persecutory in nature.

This recent move comes in the wake of Justice Dias Toffoli annulling all evidence tied to a similar leniency agreement involving the construction firm previously known as Odebrecht. This annulment was based on uncovered messages suggesting collusion between the presiding judge in that case and prosecutors.

Toffoli's recent ruling, dated Tuesday, raised substantial doubts about whether J&F had willingly and fully complied with the agreement brokered with federal prosecutors. This uncertainty led to the temporary suspension of payment obligations.

Insights from a source well-versed with the case revealed that J&F has already disbursed 2.9 billion reais of the total fine. However, the pending presentation of further evidence leaves open the possibility of the fine being reduced below the amount already paid.

Furthermore, Toffoli's ruling has authorized the company to reexamine the terms of their agreement with prosecutors through the country's comptroller general's office. This allowance aims to rectify any potential irregularities or missteps that might have occurred during the negotiation process.

This decision by the Brazilian Supreme Court justice marks a pivotal moment in the ongoing legal saga, introducing elements of uncertainty and potential recalibration in the enforcement of penalties against J&F in relation to their past involvement in corruption scandals.