May 11 (Bloomberg) -- Brazilian prosecutors started an investigation into JBS SA’s parent’s takeover of Delta Construcoes SA, a construction company at the center of alleged corruption in government contracts, because state-run development bank BNDES owns 31 percent of the meatpacker.
Prosecutor Nivio de Freitas Silva Filho on May 9 asked the federal prosecutor’s office to start the investigation, the agency said in an e-mailed statement. J&F Participacoes SA, the parent of the world’s largest beef producer, agreed to take over Delta this month.
Delta, a contractor in President Dilma Rousseff’s flagship housing program and 2014 World Cup projects, is suspected of fraud and bribery to win public work bids, Deputy Mauricio Quintela Lessa, a member of a congressional inquiry into the accusations, said in a telephone interview from Brasilia. The Rio de Janeiro-based company referred questions to J&F when contacted by Bloomberg News.
Any suggestion of government involvement in the deal to take over Delta is unfounded and the BNDES’s stake in JBS doesn’t make it a shareholder of the meatpacker’s parent, J&F said in a statement. The agreement to take control of Delta is related exclusively to J&F, BNDES said in a separate statement.
Until last month, before the allegations emerged, Delta owned 30 percent of the license to overhaul the Maracana stadium in Rio for the global soccer tournament.
To contact the editor responsible for this story: Dale Crofts at firstname.lastname@example.org