Sadia S.A. Denies Fraud Accusation

Sadia S.A. Denies Fraud Accusation

Sadia S.A. Denies Fraud Accusation

The FINANCIAL -- Agritechnics Group is suing Sadia S.A. and its subsidiary Wellax Food Logistics for misappropriation of one million four hundred thousand United States Dollars based on a fraudulent transaction.


sadia.jpg“Agritechnics Group is demanding compensation coverage from Sadia for breaking the 2006 agreement between the two sides by means of which the latter had to provide the first with USD  1 million 400 thousand worth of goods and in return of which Agritechics Group would guarantee them a banking credit line from Deutche Bank through VTB Bank Georgia. Agritechnics Group has filed a lawsuit at the Civil Chamber of the Tbilisi City Court and is asking for additional compensation as well - a USD 120 000 loss the company has suffered plus credit interest,” Archil Kbilashvili, Agritechnics Group lawyer, told The FINANCIAL.


According to Agritechnic Group,  the goods for which the payment was asked to the bank from Sadia was never  received by Agritechnics.


“Today Agritechnics Group has been left with that USD 1 million 400 thousand credit,” said Kbilashvili.


Sadia S.A. (SDA) is a listed refrigerated and frozen protein products company, operating worldwide in the processed product, poultry, pork and beef segments from its headquarters in Brazil.


As Kristhian Kaminki, Sadia's corporate communication manager told The FINANCIAL, about information reported to the press by Agritechnics Group, Sadia S. A. confirms that payment to the amount of USD 1,392,099.34 under a letter of credit issued by Deutsche Bank S.A was, indeed, demanded.


“However, Sadia strongly denies that such a request for payment would have taken place through fraudulent means. As a matter of fact, the said amount is in connection with credits held by Sadia group against companies of the Agritechnics group, arising from goods supplied during the year of 2005, invoices of which were not settled on their due dates,” claimed Kaminki.


According to Kaminki, this matter having been clarified, Sadia, a food corporation with over 60 years of existence and an unblemished reputation with customers in more than one hundred countries, reserves the right to discuss in court any other details concerning this case.


As Agritechnics Group reports, the lawsuit was filed in Georgia on October 5, 2007, alleging that on February 7, 2007, Adriano Lima Ferreira and Alvaro Ballejo Fiuza de Castro both attorneys of Sadia and Wellax Food Logistics submitted a fraudulent statement to Deutsche Bank SA Brazil based on which the value of a Bank Guarantee of one million four hundred thousand United States Dollars was embezzled from the claimant.


“Whether you are a listed company or not, business ethics should always remain as strict guidelines and therefore we were shocked to find out that a large listed company like Sadia could get so bluntly involved in such dealings,” commented Fady Asly, President and CEO of Agritechnics Group.


The Agritechnics Group has been operating in Georgia since 1998, initially as Agritechnics LLC. The company began activity with the import and transit to countries of the South Caucasus and Central Asia of fresh and frozen food products.


The company opened branch offices in Poti and Batumi, the main ports of Georgia located on the western edge of the country on the Black Sea coast, in 1998 and 2000 respectively. Today Agritechnics Group has 10 branches in the main cities of Georgia.


As Agritechnics Group’s lawyer says, Sadia’s deadline for fulfilling the agreement condition expired on March 1, 2007.


“On November 28 both Sadia and Wellax Food Logistics were delivered the notice at their offices in Brazil and Portugal and a month’s period (taking them to December 28) to respond. I assume the court process will be carried out by spring,” said the lawyer.




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