JBS has lost an appeal against a fine against one of its subsidiaries as part of Operation Carne Flaca in Brazil.
The Controlladria Geral da União (CGU) has rejected a request for reconsideration from Ceará Alimentos, a company sanctioned under Operation Carne Flaca (Eat the Most). Seara Alimentos is a subsidiary of his JBS SA, the parent company of JBS USA based in Brazil.
In October 2023, Ceara Alimentos was fined 14.8 million Brazilian reals (2.9 million USD). However, the company appealed this decision. The CGU heard the complaint, considered the evidence, and dismissed the complaint based on an opinion from the Directorate of Corporate Accountability (DIREP).
JBS previously said Carne Fraca investigators had not raised any doubts about the quality or safety of Ceara or JBS products or brands.
The crime was uncovered during Operation Carne Fraca, a federal police investigation that uncovered a meat fraud scheme involving some of the country’s largest companies.
past violations
In March 2017, Brazilian police announced the results of Operation Carne Flaca, which began in 2015 and highlighted incidents of fraud and corruption at approximately 20 beef and poultry processing plants in the country. In response to this incident, Brazil’s Ministry of Agriculture, Livestock and Food (MAPA) made major changes.
The fines against Ceara Alimentos amounted to approximately 14.8 million Brazilian reals (approximately 2.9 million US dollars), and the verdict was officially announced earlier this month.
The CGU found that Ceara Alimentos paid “undue benefits” to public MAPA officials in Paraná state in 2015 and 2016.
The financial payments targeted inspection activities and affected the issuance of national and international health certificates for sanitary inspection of food shipped to Chile and China.
In a separate case in February, a local court in Santa María, Rio Grande do Sul, rejected a request by an anonymous local meat processor to cancel a fine imposed by the Ministry of Agriculture and Livestock. Operation Carne Flaca.
The judge ruled that the fine was correct and the company was ordered to pay $450,000 (US$90,800) in Brazilian reals. In June 2021, the meat company filed a lawsuit against a decision targeting issues found in 2017.
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