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| Brazilian prosecutors on Thursday charged Joseph Safra, the world's
richest banker, seen here in Monaco in this November 21, 2002 file
photo, in connection with an alleged scheme to pay bribes to government
officials in return for waiving tax debts. REUTERS/Eric Gaillar | | | | | |
 |
| Brazil 's 'Rothschild' Safra is Brazilian banksters #1 who runs the Brazilian banking and
investment empire, Safra Group. He serves as the chairman of all Safra
companies, among them Safra National Bank of New York and Banco Safra
headquartered in São Paulo, Brazil |
Brazilian
prosecutors on Thursday charged Joseph Safra, the world's richest
banker, in connection with an alleged scheme to pay bribes to government
officials in return for waiving tax debts.
In
a statement, prosecutors said that Safra had knowledge of a 2014 plan
by executives at his Banco Safra SA to pay 15.3 million reais ($4.2
million) in bribes to federal tax auditors. The accusation is based on
tapped phone calls between Banco Safra executive João Inácio Puga and
tax officials, the statement added.
Safra,
who alongside his family owns Banco Safra SA [SADEPB.UL] and a number
of private-banking institutions including Switzerland's J Safra Sarasin,
was not directly involved in the negotiations on the bribery plan, the
statement noted. Still, the conversations showed that Puga reported to
Safra on the bribery talks, prosecutors said.
In
a separate statement, Safra's investment holding company Safra Group
said the allegations "are unfounded," adding that "there have not been
any improprieties by any of the businesses of The Safra Group."
No Safra Group
representative "offered any inducement to any public official and the
Group did not receive any benefit in the judgment of the tribunal," the
Safra Group statement said.
The
charges filed are a follow-up of a broader police inquiry, known as
"Operation Zealots," into kickbacks by companies through lobbyists.
Dozens of other Brazilian firms, including steelmaker Gerdau SA (
GGBR4.SA), have also been under investigation for suspected kickbacks.
The case is
investigating whether companies bribed members of CARF, a body within
the Finance Ministry that hears appeals on tax disputes, to get
favorable rulings that reduced or waived the amounts owed. Over 70
industrial, agricultural, civil engineering and financial companies,
including banks, are being probed in Operation Zealots.
The
Lebanese-Brazilian billionaire, whose fortune is estimated at about $18
billion by Forbes Magazine, controls a banking and financial
conglomerate that operates in 19 countries.
In addition to
"Operation Zealots," Brazil has been gripped by the far-reaching
corruption probe around state-run oil company Petroleo Brasileiro SA (
PETR4.SA), known as Petrobras, and major engineering conglomerates in the past couple of years.
($1 = 3.5931 Brazilian reais)
(Editing by W Simon and Andrew Hay)
