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Wineries in Rio Grande do Sul linked to slave labor have R$ 66 million in active loans from BNDES.

The National Bank for Economic and Social Development is studying measures that can be taken against the companies Salton, Aurora, and Garibaldi.

Wineries in Rio Grande do Sul linked to slave labor have R$ 66 million in active loans from BNDES (Photo: Sinat/Disclosure)

Vinicius Konchinski, Brazil of Fact Three wineries that used outsourced workers kept in conditions analogous to slavery have at least 18 active loans from the National Bank for Economic and Social Development (BNDES), totaling R$ 66,2 million.

Data on contracts signed by BNDES with the wineries Aurora, Garibaldi, and Salton are available on the bank's website.

Active loans are those that have not been repaid by companies. The BNDES website does not report any partial repayments of these loans. This means that it is possible that some of the R$66 million has already been returned to the bank.

In total, these same companies obtained 147 loans with BNDES resources, totaling R$148 million. Of this total, 129 loans, totaling R$82 million, have already been repaid.

Aurora, Garibaldi, and Salton are located in the so-called Serra Gaúcha region. It was there – more specifically in Bento Gonçalves (RS) – that 206 people, aged between 18 and 57, were rescued. They were harvesting grapes used by wineries while working for a third-party company: Fênix Serviços Administrativos e Apoio a Gestão de Saúde LTDA.

In an interview with UOL on Tuesday (7), Tereza Campello, director of the socio-environmental area of ​​BNDES, stated that the bank is conducting a survey on measures that can be taken against the companies. "There is a legal procedure that must be followed," she stressed.

According to Campello, as a last resort, BNDES could determine the early repayment of active loans. "If the company ends up on the 'dirty list' of slave labor, depending on the situation, the company has to return the money."

Aurora
. 25 loans, with a total value of R$ 49 million
. 6 active loans, with a total value of R$29,2 million
. Last loan is September 2022, for R$ 10 million

Garibaldi
. 45 loans, with a total value of R$ 25 million
. 10 active loans, with a total value of R$13,9 million
. Last loan is September 2022, for R$1,4 million

salton
. 77 loans, with a total value of R$ 73 million
. 2 active loans, with a total value of R$23 million
. Last loan is April 2022, for R$13 million

Total
. 147 loans, with a total value of R$ 148 million
. 18 active loans, with a total value of 66,2 million

Exemplary case

Campello also said that he hopes the winery case will become a landmark in the fight against forced labor. "I think this case will be exemplary," he said. "It's a shame, a tragedy, but it will serve a purpose, which is to show that from now on things will be different."

"Our rules are being revised to prevent delays [labor analogous to slavery]," he added. "We have homework to do."

When contacted for comment on the specific loans for wineries, BNDES declined to comment. The bank's website states that these are indirect loans, granted with the bank's resources through partner banks.

Garibaldi Winery also declined to comment on the loans and potential penalties from BNDES. Aurora and Salton did not respond.

The companies published open letters on their websites expressing solidarity with the rescued workers and promising improvements to their processes.