RIO de JANIERO – A spokesman for JBS S.A. said CVM, Brazil's securities commission is not investigating Wesley Batista, CEO of JBS SA, and Eliseo Santiago Perez Fernandez, executive director of administration and control of the company.

A report in Valor Economico stated that CVM opened an administrative sanction and investigation into Batista Fernandez. According to the report the CVM is investigating the two executives’ potential liability for infringement on two articles of the Brazil’s Law of Corporations.

Jerry O'Callaghan, JBS S.A. investor relations, said there is no investigation into Batista or any other officer of the company, and that their names are simply mentioned in the correspondence which requested clarification.

"CVM (the Brazilian version of SEC) customarily sends out letters to companies requesting clarification on issues that may not seem clear to their analytical internal team," O'Callaghan said in an emailed statement. "This is not at all uncommon. While these issues are under discussion between the company and CVM, a notice is put up on CVMs webpage advising that a subject is under analysis.

"A subject is under analysis between JBS and CVM at present and the company has until the end of May to provide the necessary clarifications."

CVM did not release additional details about the administrative sanction and investigation process, but stated that Fernandez and Batista requested more time to submit a defense, which was extended to May 30.