UPDATE 1-Brazil prosecutors charge prominent banker Safra in bribe scheme

jueves 31 de marzo de 2016 12:31 GYT

(Adds Safra comments, paragraphs 3,7)

By Silvio Cascione

BRASILIA, March 31 (Reuters) - Brazilian prosecutors charged Joseph Safra, ranked as the world's richest banker, in connection with an alleged scheme to pay bribes to government officials in return for waiving up to $500 million in corporate tax debts, the prosecutors' office said in a statement on Thursday.

Prosecutors accused Safra of corruption for the suspected plan to pay 15.3 million reais ($4.2 million) in bribes to tax officials in 2014, based on tapped phone calls between a Safra executive, João Inácio Puga, and tax agency officials.

A spokesman for Safra said the charges were unfounded, and there was no just cause for the legal proceedings.

Safra, the majority owner of the Brazilian bank Banco Safra SA, was not directly involved in the negotiations on the bribery plan, prosecutors said.

However, they added the phone conversations show that Puga reported to Safra on the alleged negotiations on bribing tax officials to reduce tax debts of 1.8 billion reais.

"He (Puga) limited himself to negotiating, interacting with the other people under investigation," the prosecutors said of the alleged scheme. "But the decisions were taken by (what Puga called as) the 'staff', that is, Grupo Safra's majority shareholder and president, Joseph Y. Safra. Therefore, Puga was Joseph's agent."

In an emailed messge, the Safra spokesman noted that the Safra subsidiary cited by prosecutors, JS Administradora, offered no benefit to any government official. He added JS Administradora did not receive any benefit from the tax agency.   Continuación...