The controlling shareholder of the world’s largest meat-packing company, JBS, has agreed to pay a record-breaking fine of 10.3 billion Brazilian reais as part of a sweeping corruption settlement in Brazil. The agreement was reached by J&F Investimentos under a leniency deal covering two major corruption investigations, according to prosecutors.
Authorities said the payments will begin in December, with J&F given a period of 25 years to complete the full amount. The size of the settlement surpasses the previous national record set by Brazilian construction giant Odebrecht, which paid 2.6 billion dollars in penalties.
Testimony That Rocked the Presidency
The case has sent shockwaves through Brazil’s political establishment, placing President Michel Temer under intense pressure. The crisis was triggered by testimony from J&F owners Joesley and Wesley Batista, who reached a plea bargain with prosecutors and resigned from their board positions last week.
The Batista brothers told investigators they spent approximately 600 million reais on bribes to nearly 1,900 politicians over several years, describing a system of corruption that cut across party lines and institutions.
Secret Recording and Allegations of Silence Payments
Joesley Batista also handed over an audio recording that was later leaked to the media. In the tape, Temer appears to condone the continued payment of money to silence jailed politician Eduardo Cunha. Cunha is currently serving a prison sentence and is considered a central figure in multiple corruption cases.
The recording was made during a private meeting between Temer and Joesley Batista, captured using a concealed recording device. In the audio, the president is heard discussing arrangements that prosecutors say suggest approval of hush-money payments.
President Denies Wrongdoing
Temer has acknowledged that the recording is authentic and confirmed it was taken during a meeting in March. However, he has firmly denied any criminal behavior. In a televised address, he stated: “I never authorised any payments for someone to be silent. I did not buy anyone’s silence. I fear no accusations.”
Despite the denial, Brazil’s Supreme Court has authorised a formal investigation into the allegations against the president, raising the possibility of charges that could threaten his position in office.
A Corruption Probe Still Expanding
The scandal is unfolding against the backdrop of Operation Car Wash, Brazil’s largest-ever corruption investigation. Running for more than three years, the probe continues to widen, with the list of implicated business leaders and politicians steadily growing.
Prosecutors say the J&F settlement and testimony represent a major turning point in uncovering the depth and reach of systemic corruption in Brazil.
