Abilio Diniz

A GPA audit committee examined payments totalling several million reais to Márcio Thomaz Bastos's law firm and Antonio Palocci's consultancy, made while the group was still under Abilio Diniz's influence. The audit stated that it had not found sufficient evidence demonstrating services corresponding to a large proportion of the payments.

State of the evidence

Disputed

Following his appointment as chairman of BRF, a major supplier to GPA, Casino argued that Abilio Diniz faced a conflict of interest while remaining chairman of GPA. The French group demanded his departure and added the matter to its pending arbitration. The dual role also raised competition concerns before Diniz's negotiated departure from GPA's board.

State of the evidence

Documented

Attribution

Directly implicated

Two associations claiming to represent GPA minority shareholders brought civil proceedings against the group, Casino and the Diniz family, alleging that the failure of the Carrefour combination had caused them losses and seeking compensation.

State of the evidence

Documented

Attribution

Accused

Abilio Diniz supported a proposed combination of GPA and Carrefour Brazil while Casino, his controlling partner, considered that the discussions breached the shareholder agreement. Casino initiated international arbitration proceedings. The arrangement also envisaged a major contribution from BNDESPar, fuelling political controversy over the use of public funds before support was withdrawn and the project abandoned.

State of the evidence

Documented

Attribution

Directly implicated

A few months after the announcement of the association between GPA and Casas Bahia, the Klein family challenged the asset valuation and the terms on which it had relinquished control of the business. After several months of negotiations described by Abilio Diniz as long, difficult and tense, the parties revised the agreement and GPA accepted a substantial additional contribution.

State of the evidence

Documented

Attribution

Directly implicated

The group's crisis triggered a bitter rift among the Diniz heirs. Sônia and Arnaldo Diniz took legal action challenging their brother Abilio's actions in managing the business, while their mother Floripes also turned to the courts. The dispute ended in a 1994 shareholder agreement giving Abilio majority control.

State of the evidence

Settlement

Attribution

Directly implicated

In the early 1990s, Pão de Açúcar came close to seeking bankruptcy protection amid recession and the economic shock of the Collor Plan. Under Abilio Diniz, the group undertook an exceptionally extensive restructuring: approximately 22,000 job losses, around 270 store closures, asset sales and a drastic reduction in its operations.

State of the evidence

Documented

Attribution

Directly implicated