A state development bank in Brazil is seeking to remove JBS SA CEO Wesley Batista following an investigation into a meat inspection corruption scheme.
Reuters reports that the BNDES Bank is blaming Batista’s conduct for a 28 percent plunge in the company’s stock this year. A May plea-bargain deal exposed the Batista family’s bribing of politicians. Additionally, an investigation led Brazil to indict 63 people for their role in a corruption scheme within the nation’s Ministry of Agriculture.
The charges alleged federal auditors at meat processing facilities took bribes for years in exchange for fraudulent sanitary permits. JBS, which grew through a series of self-financed local takeovers, began leaning heavily on the bank in 2005, when the Batista family pitched bank officials on making the company a dominant global player.
The company received more than $3 billion and used the money to buy rivals in the United States and elsewhere over the past decade.