U.S. Senators Robert Menendez and Marco Rubio on Oct. 8 called for a government review of Brazilian meat processor JBS SA, citing potential "implications for our national security and the security of the American food system."
The senators wrote to U.S. Treasury Secretary Steven Mnuchin to request for a review of JBS by the Committee on Foreign Investment in the U.S., or CFIUS.
Menendez and Rubio said Joesley and Wesley Batista, sons of JBS's founder and leaders of the J&F Investimentos entity that owns 40% of JBS, admitted to bribing more than 1,800 Brazilian politicians to illicitly acquire more than $1.3 billion in loans and financing from Brazilian institutions that were used to acquire American companies.
They highlighted some of JBS's activities and transactions over the last 12 years including the establishment of its U.S. subsidiary, JBS USA Holdings Inc., in 2007 through the purchase of beef and pork processor Swift Foods Co.; the acquisition of the beef processing operations of Smithfield Foods Inc. in 2008; the purchase of the majority of Pilgrim's Pride Corp.'s poultry processing business; and the purchase of Cargill Inc.'s pork processing operations in 2015.
"These acquisitions have serious implications for the security, safety and resiliency of our food system," the senators wrote.
The senators noted that J&F Investimentos in 2017 paid a $3.2 billion fine in a settlement related to a bribery scandal in Brazil. They also highlighted JBS's links to a Venezuelan official that is under U.S. sanctions and the company's "growing reliance on financing from entities aligned with the Chinese government."
JBS did not immediately respond to S&P Global Market Intelligence's request for comment.
The letter comes as JBS faces allegations of fixing employee wages and selling poultry at artificially inflated prices alongside other chicken producers.
