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BNDES says Batistas lack proper sense of governance for Brazil's JBS
September 18, 2017 / 1:28 PM / in a month

BNDES says Batistas lack proper sense of governance for Brazil's JBS

RIO DE JANEIRO, Sept 18 (Reuters) - The controlling Batista family lacks the proper sense of corporate governance needed to run JBS SA, the Brazilian meatpacking giant whose owners are ensnared in a corruption scandal, a top government official said on Monday.

The decision by the Batista family to tap patriarch José Batista Sobrinho as JBS’s chief executive officer in the early hours of Sunday was “an act of bad faith,” said Paulo Rabello de Castro, president of state development bank BNDES.

BNDES, through investment arm BNDES Participações SA, owns 21 percent of JBS.

Shares of JBS slumped 2.7 percent to 8.61 reais in early Monday trading.

BNDES wants to oust the Batistas from day-to-day management and the board of JBS, following revelations they bribed 1,893 politicians in the past decade to protect their business.

Joesley Batista, a son of José and one of the brothers who controls JBS, is in detention after recordings suggested he tried to take advantage of prosecutors and conceal details during negotiations that led to a May plea deal.

Reporting by Rodrigo Viga Gaier; Writing by Guillermo Parra-Bernal; Editing by Bernadette Baum

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