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Brazil prosecutors claim JBS's Batista, Eldorado's CEO broke agreement
February 6, 2017 / 11:58 PM / 10 months ago

Brazil prosecutors claim JBS's Batista, Eldorado's CEO broke agreement

SAO PAULO, Feb 6 (Reuters) - Federal prosecutors asked a court on Monday to re-impose preventive measures against two key suspects in a corruption probe dubbed Operation Greenfield, which is investigating fraud at state-run companies’ pension funds.

According to the prosecutors’ statement, defendants Joesley Batista, from the family that controls meatpacker JBS SA , and José Carlos Grubisich Filho, chief executive of pulp producer Eldorado Brasil Celulose SA, breached an agreement that had been signed with the prosecutors related the investigation.

Asking the court to recognize that the defendants “violated principles of good faith” contained in the agreement, the prosecutors petitioned a judge to block assets worth as much as 3.8 billion reais ($1.22 billion) belonging to the investigated parties.

The sum, said the prosecutors, would serve as “a guarantee” to compensate losses allegedly caused by the defendants in their business dealings with state-run companies’ pension funds, as well as state-bank Caixa Econômica Federal and the FGTS workers’ severance fund.

The probe of the pension funds is one in a string of corruption investigations into the vast overlap of Brazilian business and politics.

J&F, the Batista family holding company that controls both JBS and Eldorado, did not have an immediate comment. ($1 = 3.1150 reais) (Reporting by Ana Mano; Editing by Bill Rigby)

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