BRAZIL, São Paulo. Brazilian police are investigating suspected fraud in loans to JBS SA, the world's largest meatpacker, by state development bank BNDES, according to federal court documents released on Friday, adding to scandals circling the company. This was preorted by Reuters.
That may freeze plans for a $1 bn. initial public offering of a food processing unit, JBS Foods International, which was already at risk of postponement because of lukewarm investor interest after other scandals. The latest police probe, conducted in concert with federal audit court TCU, comes after investigations into how JBS obtained investments from pension funds tied to state-run firms and whether the company participated in bribery of health officials by Brazil's powerhouse protein industry.
JBS has denied wrongdoing in those cases as well. Maria Silvia Bastos Marques, head of BNDES, said in a conference call Friday that all the problems involving the bank will be duly investigated. She declined to elaborate.