WHY NOT bribe politicians — JBS
I just recently finished the book WHY NOT by Raquel Landim, which relates the history of how the brothers Joesley, and Wesley transformed a butchery in a state in central Brazil — Goiás into the leading and largest meat producer company in the world — JBS. The company produces factory processed beef, chicken and pork. The business achieved fast growth in the last decade. Primarily through corruption, the company had the chance to make several acquisitions in the four-world leading beefing producers nations — Brazil, Argentina, U.S and Australia.
A solution found by the associates to facilitate loans and capital was to bribe influential politicians in Brazil. BNDES (National Bank of Economic and Social Development) was a vital source loaner for JBS, which allowed them to buy competitors and, expand their business to new markets such as the Swift Armour acquisition in Argentina.
The business started in 1953 in Anápolis, Goiás as a slaughtering business by the rancher José Batista Sobrinho and his brother Juvensor — the initials make the companies’ name JBS. The store in that period named Casa de Carne Mineira started slaughtering an ox a day. Since the beginning, acquisitions such as slaughterhouses, meat processing companies and soap factory were made, allowing José to expand his business to different areas in Brazil.
In 2007, JBS became a publicly held company and in the same year acquired the U.S firm Swift and Company for $250,000,000. At that time, the company was the third-largest U.S beef and pork processor. Later, Swift was renamed to JBS USA. Through the acquisition, JBS entered into the pork market. Over the years many other purchases were made by the business. In 2009, JBS announced that it bought the food operation of Grupo Bertin to become the largest beef producer in the world. Likewise, on the same day, it was publicized that the company had acquired 64% of Pilgrim’s Pride for $800 million. Currently, the company has 150 industrial plants around the world.
Between 2007 and 2010, JBS received around $2.5 billion in funds from BNDES, permitting them to extend its imperial to distinct markets such as cellulose, bank sector and footwear. The book relates the plea deal process that the owners agreed to participate, which would allow judicial immunity although the practice of corruption, and immoral crimes. The most important material produced by Joesley to delivery for authorities was a secret record involving the last president of the country — Michel Temer, in which the politician was bribing another politician. The recorded material caused chaos in the country, with even an impeachment order against Temer. Later, the process was not followed since authorities claimed that the record was modified.
On May 17th, the plea deal process was released by O Globo, affecting the whole country by delaying pension reform and causing chaos in the stock market. The event triggered political uncertain about the country’s future when it’s the president was a defendant in several cases. WHY NOT is the name of a boat bought by Joesley which according to the author, refers as reasoning for bribing politicians in exchange of favorable laws that would benefit their company.
The book displays corruption everywhere; from corporations to government. The cause of the two tops executives going to jail was that in the plea deal, crimes such as the insider trading practice was not told to the authorities. Investigators stated that the brothers sold many shares in their company weeks before telling authorities about suborning politicians, knowing that the stocks would decline. Police said the brothers saved around $44 million through the insider trading. Both brothers have admitted bribing almost 1,900 politicians.
