Pires de Lima: “Government is beyond suspicion” if BES – Business Journal – Portugal

Pires de Lima: "Government is beyond suspicion" if BES – Business Journal – Portugal

Economy Minister says Executive respected “completely” what was determined by the regulatory authorities and says that there is no suspicion on members of the government if BES.

The Economy Minister António Pires de Lima, rejects that members of the Government have committed irregularities with regard to the case Banco Espírito Santo, including leaks.

“The Government is not under suspicion,” began by saying Pires de Lima told reporters after questioned about the investigation, proposed by the Left Bloc, the council of ministers meeting last July 31, to ascertain whether there were leaks that give to understand, on Thursday, that the weekend following week there would be a decision to withdraw from the Bank of Portugal that implied losses for shareholders.

“I will not make any comment, but I think the government is beyond suspicion in this matter,” continued the official, speaking on the sidelines of a visit to the port of Setúbal.

On Thursday 31 July an ordinance where rules that protected the deposits in the bank of small shareholders were changed was approved. Ordinance that was not advertised. The meeting of ministers took place Thursday morning but the BES shares continued to be traded and was only suspended on Friday, August 1 at around 15:40, when the Commission of the Securities Market received indication of Bank of Portugal that there would be developments in this case the end-of-week. In between, the titles slipped strongly, with falls of around 40% in two days. And on Sunday, August 3, BES was dissolved, splitting into two entities: the bridge bank, Novo Banco, who got good workers and active BES; and BES, which became a financial vehicle with assets considered toxic. Shareholders were in the latter vehicle to lose (almost) everything, with limited possibilities for recovery of money.

These facts are already being examined by the Commission of the Securities Market Commission (CMVM), and the Daily News wrote that several ministers may be called to testify to the Portuguese stock market regulator. The Left Bloc said it wants a political response to this “process marked by a succession of leaks” that, in his view, are “politically reprehensible.” It has therefore requested the inquiry. Pires de Lima rejects any suspicion.