JBS to appeal fine for Carne Fraca from Brazil End-shutdown

JBS will appeal the decision of the Brazilian authorities to find one of its subsidiaries as part of Operation Carne Fraca.

The verdict of Controladoria-Geral da União (CGU) regarding Seara Alimentos was officially published this month. JBS said it will appeal the decision.

JBS SA is the Brazil-based parent company of JBS USA, which built its North American units around the acquisition of Swith and Company.

JBS said those responsible for the Carne Fraca (Weak Flesh) investigation did not raise any suspicions about the quality or safety of Seara or JBS products and brands.

Seara Alimentos was found with more than 14.8 million Brazilian reais (US$2.8 million) and was asked to post information about the decision at a physical location and on its website.

In March 2017, Brazilian police announced the results of Operation Carne Fraca, which began in 2015 and highlighted cases of fraud and corruption in some 20 beef and poultry processing plants in the country. Brazil’s Ministry of Agriculture, Livestock and Food (MAPA) made important changes as a result of the incident.

CGU findings and JBS response
An investigation by Carne Fraca showed that Seara Alimentos had a way of paying “undue benefits” to agents of the Ministry of Agriculture, Livestock and Food (MAPA) of the State of Paraná. This affected the inspection activities and issuance of national and international sanitary certificates that facilitate the shipment of food products to China and Chile, the CGU said.

“It is important to clarify that those responsible for Operation Carne Fraca, which began in 2017, did not mention or raise suspicions about the quality or safety of Seara or JBS products and brands. This can easily be verified in Federal Court. order that authorized the police the operation Carne Fraca investigations focused on administrative issues regarding the inspection system of the Ministry of Agriculture,” said a JBS statement.

Sanctioned businesses typically have 30 days to pay any fines. However, once an appeal has been filed, the term to comply with it begins to count from the time the appeal is resolved if it is unsuccessful.

At the end of December 2022, BRF SA signed a leniency agreement in Brazil related to Operation Carne Fraca and Operation Trapaça (Trap).

The company agreed to pay more than $580 million Brazilian reais ($110.4 million). As part of this, authorities have finalized proceedings targeting the business and will not file related lawsuits against the company.

BRF also committed to adopting preventive measures to ensure that such practices do not occur again and to improve its integrity program.

The results of Operation Trapaça, published in 2018, focused on laboratory tests for Salmonella that had been falsified to avoid checks by the authorities.

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