The Tranquility made four loans to Espírito Santo Financial Group, which owns 100% of Partran, who was the owner of the insurance company. A total of EUR 150 million since May 2014. Of this amount, 85 million was channeled to the sale of commercial paper. Former chairman of the executive committee of Tranquility, Peter Brito e Cunha, said on Wednesday, the investigative committee to BES / GES, he did not see at the time, ‘no problem’ to ‘assist the parent. ”
“Who am I to question the shareholder when asks me for help?”. “It is a request of the shareholder who is very difficult to refuse. The shareholder is not only a person, is a group. There is a good chance … If I refuse … “
” It was the chairman of the executive committee of Tranquility ‘retorted Mrs CDS-PP, Teresa Baby Angel, the first to ask questions Peter Brito e Cunha, who dismissed initial intervention. Later on, the former manager said that refused in July, the month of the collapse of GES and BES, a new transaction . But argued that, in this month, already knew of the problems and so it is not trusted. By June not claimed.
So far, had no doubt that the main shareholder would return on the loan payments, because “all these investments were made at the time of the famous recapitalization plan approved by the Bank of Portugal [ETRIC],” he explained.
“When I agree these four loans, always did great in that there was no problem. The shareholder was asking for help. This helps interested always Tranquility. On the one hand it was well paid. They were always well-paying investments, with very low risk. ”
Claiming that direct investment in commercial paper of the group, was not frequent, detailed the loans made in the first half of 2014: “The first 15 million loan was made to one of the group companies, was pure loan, which had obviously attractive remuneration and had basically a very short term. This was the first, in May. ”
But there was then another 40 million and another 45 million. “Then yes, it was buying commercial paper and also very short-term.”
telephone Investments made
The last of all, was 50 million. “An aid home mom [ESFG], for all purposes, for this support its position on the BES capital increase ‘he admitted.
It was authorized by telephone, although not all administration were in agreement:
“It was not in the country.” “Not everyone agreed, but everyone was aware” of these investments in commercial paper of GES
He even admit then that “there has never been the executive committee meeting to discuss these investments’ and the Insurance Institute was only informed the June 6 the four transactions.
Peter Brito e Cunha saw the aid naturally, because they had already done the like operations in the past, ‘especially in February, “with a loan of 100 million to ESFG,” at very short notice, a month, refunded on March 7th. ”
“It had happened in the past and there was no reason to doubt the main shareholder and that would be default. There was no knowledge of the actual situation on the group’s situation. There was nothing to point to. Everything was going well until this moment “
The former administrator said that for Tranquility, BES was an ‘extremely important institution’, accounts for about 30% of revenues company. ‘Where the shareholder is asking for help is obvious that position is to help “, said again.
The former president of Tranquility further explained that the decision on the transactions did not pass by the executive committee of the company, because administrators worked “all together in a room ‘and’ spoke ‘logo.
Film of events
Remember that the Tranquility was the target of a financial pledge in July 2014 by the Partran (its shareholder 100%, a company owned by Espírito Santo Financial Group, the financial holding company of the Holy Spirit Group). This pledge in the amount of EUR 700 million, was made in favor of the then Banco Espírito Santo.
Why? The Bank of Portugal had ordered the ESFG strengthening of provisions in this amount, for the 2013 accounts, in case the ESI can not repay commercial paper sold by BES to balconies. ESFG used the Tranquility for that purpose.
That is, an insurance company was given as a guarantee or pledge because of credit granted by BES to ESFG, the financial holding company of GES. With the resolution enacted by the Bank of Portugal, who shared the BES in two, this credit went to the New Bank.
The New Bank sold, in turn, Tranquilidade the US Apollo group, already in January 2015. The business was far from 700 million euros: what has been agreed is that the bank received 44 million euros, while the new owners have pledged to inject 150 million to strengthen the solvency of the insurer. There are actions in court asking for the nullity of the pledge and the sale of Tranquility.
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