Brazil Prosecutors Allege Document Shows BTG Pactual Bribed Official

Agen Sabung Ayam

SÃO PAULO—Brazil’s BTG Pactual BBTG11 -8.fifty three % was reeling anew on Monday, after a best federal prosecutor stated Brazilian investigators allege they have proof the bank paid out a strong lawmaker more than $ eleven.five million in exchange for political favors.

Brazilian investigators say they have obtained a document demonstrating that BTG BTG -.40 % in 2013 compensated a bribe of 45 million reais to Home Speaker Eduardo Cunha for like an amendment in a piece of legislation, which would improve the bank’s revenue. Mr. Cunha is currently underneath investigation by authorities for allegedly stashing tens of millions in suspected bribes in Swiss lender accounts, in accordance to a court order noticed by The Wall Avenue Journal.

Mr. Cunha denied the allegations. “It´s a accurate absurdity,” Mr. Cunha explained in a statement Monday.

The new allegations occur hrs after BTG Chairman and Chief Govt André Esteves resigned his put up adhering to his arrest final 7 days in a widening of the corruption investigation involving Petróleo Brasileiro SA. Authorities jailed Mr. Esteves on allegations of witness tampering and obstruction of justice. Prosecutors allege Mr. Esteves experimented with to buy the silence of a key witness whose testimony could possibly implicate the banker in the scandal.

Mr. Esteves’ attorney mentioned last week that Mr. Esteves denied the allegations and prepared to struggle the expenses. Mr. Esteves’ lawyer declined to remark Monday simply because he said he has not but experienced access to the new court docket doc.

BTG stated in a assertion Monday that it is cooperating with the authorities and that the bank “vehemently denies having made any type of payment for an alleged benefit” related to a banking law that was accredited by Congress in 2013.

Monday’s news is an additional blow to BTG, which previous 7 days confronted a wave of withdrawals by clients nervous about fallout from Mr. Esteves’ arrest.

Longtime BTG companion Persio Arida previous week stepped in to lead the financial institution. On Sunday he was named Government Chairman, even though partners Marcelo Kalim and Roberto Sallouti had been appointed co-Main Govt Officers. Modifying the govt framework of the financial institution was the initial stage in an work to regain marketplace self-assurance, in accordance to a particular person near to the financial institution.

Other methods may possibly contain the sale of belongings, a 2nd man or woman with expertise of the circumstance stated. BTG is in talks to promote a twelve% stake in medical center chain Rede D´Or São Luiz SA to Singapore’s sovereign-wealth fund GIC, the man or woman said.

The scandal will potentially speed up the sale of Rede D´Or and other belongings, according to banking analyst Luis Santacreu, at Austin Ranking in São Paulo.

Requests for responses to GIC were not answered.

There is also speculation that present partners could try to buy out Mr. Esteves’ nearly thirty% stake in BTG to distance by themselves from the embattled former executive, stated two other people shut to the lender. One particular of the people, nonetheless, stated no choice on probably buying out Mr. Esteves has nevertheless been manufactured.

Device shares of BTG ended up down 8.fifty three% in the early morning in São Paulo, trading at 20.ninety Brazilian reais. The cost of BTG’s traded models fell much more than thirty% because the close of trading on the working day ahead of Mr. Esteves’s arrest, slumping from thirty.89 reais to 20.23 reais at all around midday on Monday.

Write to Luciana Magalhaes at Luciana.Magalhaes@dowjones.com and Rogerio Jelmayer at rogerio.jelmayer@wsj.com


WSJ.com: Globe News

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