World’s richest banker Joseph Safra charged with bribery in 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 (US$32.6 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 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, prosectors 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 judgement 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, have also been under investigation for suspected kickbacks.