Brazil’s JBS SA announced last week it would suspend its cattle purchases and slaughter activities at seven facilities for an indefinite period.
Meat industry publication Meatingplace reports the move follows a local court decision that decided to freeze the U.S. equivalent of $230 million in assets belonging to the controlling company of JBS.
The assets were blocked following the request of a Parliamentary Commission of Inquiry on Tax Irregularities. The Commission was installed after former CEO Wesley Batista revealed in his plea bargain testimony to prosecutors earlier this year that false invoices were used to justify the outflow of money to pay bribes to politicians in exchange for tax incentives.
JBS decided to halt operations in its seven units in the state due to “legal uncertainty,” but said that employees would continue to receive their salaries normally “until the company has a definition on the subject.”
From the National Association of Farm Broadcasting News Service.