“I belonged to the army, had a general, I was a senior and this army lost» . This is the implication that Amilcar Morais Pires, former financial director (CFO) of Banco Espírito Santo, BES Film Strip, where he was 28 years old. Yet entered the bank was public and was rising to the top, but its hearing in the parliamentary committee of inquiry to BES Group and the Holy Spirit was very marked by “do not know” for an answer and by trying to escape certain issues. Assumed to be ‘a little victim “in this process and has repeatedly invoked the secrecy and banking secrecy, which turned out to be lifted.
“The future will tell who is effective responsibility for this situation. The criticism that I did is very pragmatic. An army that loses, loses his generals, but is not a definitive review »
admitted, in the final stretch of the hearing, which lasted six and a half hours:” We failed in some things ‘. But always tried to specify not that bad, but the good: “We did good things and still today, the New Bank, two out of three SMEs are his, has thousands of employees working well, has a list of significant customers. What is the New Bank is a part of BES ‘.
At this point, José Magalhães (PS), which had asked the former CFO self-criticism, took the opportunity to mention that, “in these battles, each usually think about what could have done and not done ‘or vice versa. A reflection ‘painful’ and ‘certainly did that, “he said, in appeal of voice, Morais Pires. To this, BES former administrator said, “We were 25 around a table, high ranking, qualified persons. A turning point that much shakes confidence was the Etricc II [an exercise required by the Bank of Portugal aimed at ensuring adequate cov erage of risks] and its consequences. At this point, we could have alternatives: one has said what he did, others fought to the end to save the BES ‘.
Michael James (PCP) was unwittingly making a rhetorical question, laden with irony: “How does a CFO of a bank, all the answers today says ‘do not know, did not know anything’ how does that justify the salary? ‘. The communist deputy then gave the answer, even before Morais Pires: “The conclusion is that the bank was badly managed, when neither the CFO knew what he was doing there. One of two things: either the truth is hidden, or the CFO of the bank did not participate in the management and mismanagement was or was an adornment of the bank. ”
When he had the opportunity to speak, the former financial director Miguel told James that the deputy had a right to think whatever he wanted, but warned: “I do not accept that say they tried to move next.”
Already on Salgado described him as the strong man, the ‘maximum responsibility “,” concerned about the details, “was” natural “that he knew everything that was going on in the group, recognized , finally admitted to it was the former employer BES who commanded responsibilities that should fit it to you . And more:
“We all concluded that Dr. Ricardo should have been gone longer, because he could not be responsible for the screening of BES ‘
The shield is the ring fencing required by the Bank of Portugal to end the exposure of BES to GES. Now it was Salgado who represented both the interests of the bank and the family holdings Holy Spirit, who made up the group. Former CFO ultimately admit that this goal could be skewed, given the concentration of power.
A concentration which, as the investment of 900 million euros in PT Rio Forte, which only served to lose money, the former owner of the BES also came into play in the negotiations: “From the bank side could only be Dr. Ricardo, the PT side do not know who ‘. Morais Pires, who was executive director of the telecommunications operator, said that “never suggested any investment initiative nor in Rio Forte, or the ESI ‘.
José Maria Ricciardi: the big target
Former responsible financial BES was the first player in this commission of inquiry to point almost all batteries Ricciardi, Salgado’s rival cousin who, at his hearing, December 9, ruled out any responsibility in what happened and even said that was the ‘unique’ to want to change the course of things, feeling ‘betrayed’ for all other . Morais Pires says that is not so. On the contrary. Ricciardi is “a very important person” as it heads the BES Investimento. And at the insistence of PSD to point the finger only Salgado, said the risk department was in the hands of cousin and that questions about it should have been made two days ago , when he was in Parliament.
“The BESI had not mere administrative role.” In the commercial paper operations’ of any client, including Rioforte and ESI ‘was BESI “who defined’ and ‘approved’ all
How was keen to stress, was precisely the Holy Spirit International that was at the center of the whole problem. Or at the top, leading the rest of the table. “The problem was in the ESI even selling all the non-financial GES, were missing the 2.4 billion”, the hole found in the accounts. And it made a point to point the finger at Ricciardi. Have Salgado was trying to “working” to resolve the problem with the capital increase of EUR 700 million planned for the Rio Forte and did not come to be realized.
On the other hand, noted that the overall risk department, controlled by Ricciardi, had a “much lower estimate of the worst case scenario ‘of 1.1 billion euros, on July 7, and at 23, Banco de Portugal has determined that it made a provision of 2 billion shot.
«BES commercial paper distributed transparently»
At BES, guarantees, commercial paper in the eye of the hurricane was distributed ‘transparently’ without cheating customers. And these operations, the Bank of Portugal was aware, he said. Already the sale of commercial paper in the remaining group, said he did not know.
“We could have been stricter with Angola»
Morais Pires admitted that BES Angola ‘had a bad reputation in some situations, “but argues that there knew the operations effected. “I had perfect autonomy ‘. However, now admits that BES ‘should have been more strict and cut more likely. ”
“I take collectively the criticism he is doing, but since 2012? I did everything in my power to change things. In 2013, there are no grounds for adjustment. Is there a guarantee that protects the assets at that time, “he says, referring to the guarantee signed by José Eduardo dos Santos.
“If you tell me that the problem was being to give credit without proper and viable information and to lend money, even with guarantees granted evil, accept this observation ‘
In the second round of hearings, the deputy of the PSD, Duarte Marques, announced that his party and the CDS-PP will ask supporting output and reception of BES capital for the BESA. Before, Morais Pires was assured that “there is the board of directors reports’ about it. “It’s all there. All ».
As Salgado, blamed the measure of resolution by the end of the warranty Angola. Until July 11, guarantees that “never” received “no indication” that the security of the Angolan President was concerned. “It is written in the minutes’ secured.
Despite all the problems, and how to understand that private recapitalization was possible, Morais Pires says that “the BES should have survived.” “One could have done more in the days before the resolution. The resolution fund exposes taxpayers to the risk, “he argued. The Bank of Portugal has, moreover, its second target, then the Ricciardi. Believes that ‘uncertainties’ generated by Carlos Costa as the bank’s leadership transition generated ‘stress’ . Read up, the sharp decline in shares and the “flight of deposits’.
“I was a little victim of disorderly succession»
In addition to the “suspension of funding cycle ‘,’ the succession process’, in which the Bank of Portugal put a brake on his rise to the leadership, was “botched”. “I was a little victim of circumstances. Humanly, it is not easy to deal with these situations, “he said, claiming that up was out of the country, a road show on 18 June, when Salgado invited him to his place. What did not come to be approved by the Bank of Portugal. Vítor Bento was you who followed. For a short time.
“I am in good conscience, I warned my colleagues, who were to take steps,” as if “sees the minutes delivered to the Bank of Portugal.” “I accept, collectively all the responsibilities. But is not the CFO that runs the whole bank, nor had responsibilities in risk ‘
“Interestingly my life changed that day,” said Morais Pires, alluding to July 11, the day of the last meeting in the bank, which warned of ‘the perfect storm’ . The bank then actually be struck by lightning that collapsed. Among the rubble, by his estimate, 6.8 billion euros of deposits were to life in the fateful month .
No comments:
Post a Comment