After Allegations of Bribery, Brazil's BRF Inks A $111 Million Amnesty Deal

Wednesday, Brazilian food processor BRF SA (NYSE:BRFS) inked a leniency agreement with local authorities on payments it must make to the government of the South American country following allegations of bribery.

The agreement with the offices of Brazil's attorney general (AGU) and comptroller general (CGU) requires BRF to pay approximately 584 million reais ($111 million) to the government, according to the CGU, citing allegations that company employees paid public officials to gain "undue advantages" following federal police investigations.

In 2018, BRF began negotiating the deal with the CGU and AGU, cooperating with investigations to mitigate the effect of sanctions.

BRF stated in a filing that the payments will be made in five yearly installments beginning on June 30 of next year. It pledged to engage with authorities using its "best efforts" and to continue enhancing its governance and compliance procedures.

In a second statement, BRF stated that it "understands that signing this leniency agreement closes the book on the previous situation" and that it does not condone unlawful action or inappropriate conduct.

Wednesday's closing price for shares of BRF was 7.76 reais, up nearly 8%, while the wider Bovespa Index increased 1.53%.