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Management Side
Brazilian Judge Permits JBS Executives to Return to Work

SÃO PAULO, Brazil (From The Wall Street Journal) --Brazilian meatpacker JBS SA's two top executives can return to work as soon as Wednesday, a judge said Tuesday, more than a week after the two men were suspended from their jobs by a court order.

On Sept. 5, JBS Chief Executive Officer Wesley Batista and his brother, JBS Chairman Joesley Batista, were ordered by the same judge to step aside while police investigate alleged fraud at a paper-pulp producer owned by the Batista family's investment company, J&F Investimentos SA.

JBS announced earlier Tuesday that chief executive officer Wesley Batista had been temporarily replaced by his brother, José Batista Junior, in response to the court order. The company also appointed their father, José Batista Sobrinho, who is the founder of JBS, as chairman to replace his other son, Joesley Batista.

JBS indicated late Tuesday that Wesley and Joesley Batista will return to work soon.

"The company will respond to the (new) decision with the same agility" with which it responded to the earlier court order, a JBS spokeswoman said.

The judge agreed to let Wesley and Joesley Batista return to work in return for J&F either making a bank deposit of 1.5 billion reais ($452 million), or providing other guarantees for the same amount, to pay any potential restitution from the investigation in the event either or both of the men are charged and found guilty.

J&F has until Oct. 21 to make the deposit or provide those guarantees, according to the agreement between J&F and prosecutors, which a judge accepted. If the payment isn't made by then, Wesley and Joesley Batista's suspensions from their positions will be reinstated, the agreement said.

The two Batista brothers' legal issues stem from a massive police operation launched last week targeting more than 100 individuals and businesses across Brazil. Dubbed Operation Greenfield, the probe is aimed at uncovering alleged malfeasance at four state pension funds that allegedly overpaid for stakes in Brazilian-owned companies, including pulp maker Eldorado Brasil Celulose SA, which is controlled by the Batista's holding company.

JBS isn't a target of the probe. But Wesley and Joesley Batista were among more than three dozen Brazilian executives barred by a judge from managing any business while police investigate the alleged scam.

A J&F spokesman has denied any wrongdoing by the brothers or by Eldorado.


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