Today is the day of the explanations of Ricardo Salgado. For the first time, the former president of BES answers questions about the fall of the bank. Is being heard from 9am. In the afternoon, after 15h, it is the turn cousin Jose Maria Ricciardi tell his side.
* “For weeks and months, my family and myself were summarily tried in the public square. All totally false stories, but that just to hide the truth of the facts. “
* Salgado said that after March 2014, the Bank of Portugal started” moral suasion “to his departure from the bank’s leadership
* “A name can be deleted from the facade of a bank, but not the memory of a family with 145 years”
* “I can assure you that never gave indications one to hide the Group liabilities “
*” Nobody appropriated a penny, nor the administration, nor in the family “
*” will forgive because who dares to continue to think that modestly I served with integrity, the tasks entrusted to me in the exercise of my profession over 40 years “
* Salgado refused to talk about the 14 million received from the builder José Guilherme, invoking judicial secrecy
* “There was an error of judgment on the person’s statement was to the CEO of BESA [Sobrinho],” said Salgado, suggesting that was attacked by newspapers ( Sun and i ) that are held by the Angolan businessman
* “The death sentence came when it was not possible to make a capital increase of Rioforte”
* It would be enough a signal [the Bank of Portugal] for me to leave the bank’s leadership.
* “BES going bankrupt. BES was forced to disappear “
Ricardo Salgado:. “On the political promiscuity, I saw some comments from highly placed politicians that the group would have had a special connection to the previous previous government and the PS All banks in Portugal, in any dimension, contributed their employees to government. “
Michael James, PCP, now begins to inquire Ricardo Salgado. Four hours after the start. “Provisions were related to that impairment, that credits that customers?” Salgado begins to respond with a “because …”
Acronyms like BES , GES and bop and words like Capital , ruler , database , group , debt , you , financial and increased were the most used by Ricardo Salgado in his opening speech. An analysis by the PUBLIC in addition to the most common prepositions (“of”, for example) and other words with no relevance
“When in late June asked the lord governor could indicate the Amilcar” to replace the BES leadership, Salgado says that Carlos Costa replied “that needed two days to think”: “Then he called me to say who will be the President understand. “
Amilcar Morais Pires – former financial head of the BES and Salgado proposed to succeed him as president of the bank, which was not to be – back to be spoken. In light of the problems that the bank and the country faced in international finance, Ricardo Salgado “considered important” that Morais Pires was appointed CEO. “As we were going to the capital increase, considered essential to put the dr. Amilcar Morais Pires [to CEO] and the dr. Isabel Almeida as CFO [financially responsible]. “
Salgado went after reading an email sent to the Governor of the Bank of Portugal on 20 June at 12h27 asking you” again “and “urgently” to be given permission to name Morais Pires, and stressing that John Moreira Rato, then president of the IGCP (entity responsible for managing the state debt) pointed market difficulties. Salgado said to have received a response from the governor an hour later, at 13.35. In this email, Salgado says Carlos Costa said that “the Bank of Portugal was not able to validate the name proposed by a shareholder” without assessing the suitability requirements. “
Ricardo Salgado: “You governor asked me who should succeed me was sometime before the capital increase I said… Dr. Morais Pires and secondly Dr. Joaquim Goes You governor told me that there was a certain preference for Dr. Joaquim Goes, who enjoyed much appreciation in the area of supervision. So I was very surprised when he was suspended. “
Ricardo Salgado: “The Bop raised pointed questions about my suitability for the past year I can not talk about it because it is secret justice [case Mont Blanc , and the offer will be received from a builder. allegedly 14 million euros]. “
Cecilia Meireles: “When are you governor told him that we should depart from the BES leadership?”
Ricardo Salgado: “You governor never told me that I should leave the BES administration . What I said was that the family, all should leave the BES administration. Never, for ever, I had a negative reaction. And if you ever governor had told me that I should leave, I would come out on time, but it was at the time ” Photography: Daniel Rocha
Cecilia Meireles: “This is the part that I can not at all understand: how the holding top was not audited, had no statutory auditor, and why would anyone wondered about the ESI … “
Ricardo Salgado:”. The ESI was not a holding financial and therefore was not supervised’ve been 40 years in Luxembourg and never had a process and now it seems the sky in collapsed on top of her head. “
The “dr. Machado of the Cross “, the accounting officer of the Holy Spirit International, has been the most talked about missing this hearing. Salgado, who today already said to have provided “relevant services” to the group over two decades now quips that “dr. Machado of the Cross “now says one thing, now says another.
Ricardo Salgado: “The model of the resolution creates the final debacle, which is aa fall assurance Angola.”
A figure (mostly) silent in the room: Francisco Proenca de Carvalho, lawyer of former President of BES, son of Daniel Proenca de Carvalho. Sitting on the right side of Ricardo Salgado, it is he who carries the microphone button every time your client responds to Members. Sometimes, exchange views with Salgado when the computer is off and there is a deputy to ask a question.
Cecilia Meireles, CDS, begins to question Ricardo Salgado. The hearing has lasted for over three hours. There are still questions of PCP and BE to end the first round. There are, still, two new rounds. The last of which allows all members who want to put questions. That is, the hearing is still in a very early stage …
Ricardo Salgado: “.. Lehman Brothers went bankrupt BES going bankrupt BES was forced to disappear .”
Pedro Nuno Santos:. “A strategy that would jeopardize their business, could never be led by him, who wanted to protect the non-financial sector As was implementing the BOP measures was found, according to the Bank of Portugal, a scam to continue to fund the GES Dr. Ricardo Salgado, how you managed to convince the governor of bop to keep it “
Ricardo Salgado:”.’ve heard surprised the Governor’s statements BoP according to which had to arm wrestle me. I was never suggested that was in my suitability assessment. Suffice a sign [of the Bank of Portugal] for me to leave the bank’s leadership . “
Ricardo Salgado:. “I think we are reaching a point where the gentlemen are to understand what happened Dr. Ernani Lopes considered the GES a structuring group and a center of rationality The group had an extraordinary multiplier in terms of. employment. “
Ricardo Salgado talks about the collapse of the Holy Spirit empire in 2014. “The death sentence came when it was not possible to make a capital increase of Rioforte “. “The death sentence is a sentence that evolves over time.” “We were to defend the credibility” of the group and BES customers “and seven months to solve a problem of this magnitude was impossible, he said.
Salgado continues to answer questions from Pedro Nuno Santos, who today explained his strategy in an interview with Publico.
While the GES was “in full reorganization,” Salgado said to have time request to the Bank of Portugal. “Now, time was not what we were given.” “We simply had no time and there are still many companies there” that are still on sale. The one that the former president of BES said to have achieved “escape the pressure of the supervisors was the Holy Spirit Health”, a company that after the collapse of GES was the target of several takeover and interested, ending up in the hands of Chinese Fosun, through a public offering of Loyalty.
Salgado: the credit problem of BESA “emerges now” because garantiado President of Angola fell. “Do not believe for another question that no separation of Banco Espírito Santo in a good bank and bad bank”. Members and leaves the interpretation of this fact
Pedro Nuno Santos:… “The security fell because of the resolution but that’s not the problem.The problem is prior Rui Guerra Since 2013 is ahead of BESA . I give it only 5 companies that received EUR 1 600 million. Companies unknown and that much of this money was not earmarked for production. It was time to start talking a bit more about this “
Ricardo Salgado:. “We can not discuss these matters, because the Angolan banking secrecy Dr. Rui Guerra says the responsibility of these credits up to Sobrinho is also known that from one point Sobrinho named coined to charge. the allocation of credit. “
Pedro Nuno Santos: “BESA eventually became a transfer of 3 billion euros of Portuguese contributors to others, Angolan business, or Portuguese, we do not know … There is a responsibility of those who decided to grant credit to the BESA, which is BES. It’s yours. “
Salgado admits some mistakes, but ensures that has always been a “conscious professional.” And give a guarantee. “There was no capital shifts out of the bank” or for administrators, not for bank directors. The “scenarios” presented on television on moneys exits, he says, are “totally false”.
Ricardo Salgado begins to respond, “sir …”, but Pedro Nuno Santos interrupts him, asking that the case for “Member”.
Now begin the coordinator of questions from Socialist deputies, Pedro Nuno Santos. “How asks Machado da Cruz to continue, after what he did?”
Salgado: “There was an error of judgment on the person’s statement was to the CEO of BESA [Sobrinho].”
Carlos Abreu Amorim (PSD) summarizes the Salt answers: “Although he was the principal, was always the last to know”
Ricardo Salgado replies. “It was only responsible for the financial area,” replies former President of Banco Espirito Santo: “He lived in the BES”. “ I consider myself a true worker. Having dedicated my life to the bank, do not consider myself responsible for what happened “out of the bank, not finance .
Carlos Abreu Amorim Salgado questions about the alleged EUR 14 million it received from the builder José Guilherme. The banker says it’s a matter of personal jurisdiction and invokes the secret of justice.
The teams that after BES Angola reached “the greatest resistance and threats were you raised.” And that’s what led us to ask for support “to the President of Angola, Salgado said, explaining that the guarantee was given because the Angolan authorities considered BESA” an essential database for the development of Angola “. But the Bank of Portugal knew the situation? “We were looking inform the Bank of Portugal always to the extent possible,” says Salgado, stating that the Portuguese supervisor “has always raised the greatest doubts about the guarantee” to the point of not to accept for the purposes of capital ratios. “[It was] extremely unfortunate that this has happened,” said Salgado.
“I remember that there are three banks with capital of Angola, BCP, BPI and BIC”. And put the guarantee of Angola in the bad bank, as toxic assets, after the BES division, was “at least a huge diplomatic offense.”
Salgado: “Count me out to attack anyone in my family.”
Read here in full the initial intervention of Ricardo Salgado, ending with an emblematic phrase: “ will forgive because who dares to continue to think that, modestly, serve with integrity, the tasks entrusted to me in the exercise of my profession to over 40 years, inside and outside the country . ”
Carlos Abreu Amorim: “Are you telling us that knew all the newspapers?”
Ricardo Salgado:.. “I appeal to his legal wisdom is a crime in Angola violate banking secrecy Our Angolan partners suggested replacement doctor Sobrinho. Well, from the time when Sobrinho out, news organizations of his property, which acquired the Sun and i , begins the bombing in the press doctor Sobrinho about me, and beyond. “
Salgado:.. “If there had not been a huge problem in Angola, why would a guarantee signed by the President From one point began to have information in Lisbon … strange must have been in the mid Customers complained was found that Sobrinho had no time to get customers. There was a credit growth. We have reached a height unfortunately in the BNA says Angolan banks must have full independence computer from the outside. We had to give autonomy to computer Angola in 2009. It turns out that we started to get worried as the time wore on. They start out news … there is Dr. Cristina Ferreira, CIVIL, that one should remember that. “
Carlos Abreu Amorim: “In recent weeks he headed the bank for transfer news for off-shore in the British Isles Who are these off-shore .?”
Ricardo Salgado: “. I am not aware of capital which have left the bench to third parties”
Carlos Abreu Amorim: “He was responsible for some banking capital exceeding € 1 million since April “
Ricardo Salgado:” He was in charge of the Credit Committee but only had intervention in major operations by. Therefore, operations of one million euros do not fall within the scope of the CEO. ”
This time is Carlos Abreu Amorim who shows a graph based on the KPMG report to show the “colossal” exposure of the bank to the group – the “colossal” is the PSD deputy. Replica Salgado:. “I judge I clarified, as far as possible, the unenforceability of ring-fencing [BES protection barrier with respect to GES]”
Salgado: “Between July and August must have left the bank EUR 6 billion.”
Salgado: “. The Group collapsed because there was no time and not be possible in the medium-term operation There was no money leaks from the database .” Photography: Daniel Rocha
Salgado: “ No appropriated a penny, nor the administration, nor the family ”
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Abreu Amorim questions the Salgado has had contacts with Francisco Machado da Cruz. The former accountant of the group – who Salgado sometimes refers to as “Dr. Machado of the Cross” or simply as “the ax of the Cross -” had residency in the United States. ” “I do not see there is broad, many months”.
Carlos Abreu Amorim: “Where did the money”
Ricardo Salgado, “is to refer to the BES impairments”
Carlos Abreu Amorim: “Yes.”
Ricardo Salgado:… “These impairments were accelerated by an order of bop Therefore, the damage that BES was made by order of this provision imposed It was on record that was imposed We are all waiting for the forensic audit . But the provision does not translate into cash outflow. “
Carlos Abreu Amorim insisted: “I did not know … But this manipulation existed.” Ricardo Salgado says, “.. All members of the High Council signed the accounts did not give instructions to conceal liabilities to Dr. Machado da Cruz [the accountant]”
Carlos Abreu Amorim, PSD deputy, questioned whether there was at some point manipulation of accounts “in BES and GES. Salgado begins to respond. “The GES is 40 years ago in Luxembourg. We never had any problem with our Luxembourg companies “. The accounts of the holdings in Luxembourg were always closed, he said. “I must say that my life was dedicated” to 100% of the financial district and had no direct responsibility for the accounts of the Holy Spirit International says Salgado.
Salgado: “I can assure you that never gave directions to anyone to hide the Group’s liabilities”
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Salgado Carlos Abreu Amorim answers. He says he never compared the BES to the country, only compared the “method”.
Carlos Abreu Amorim: “Public money can not be used to remedy a situation with suspected fraud and manipulation of accounts”
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The first party to question Salgado is the PSD. Speaks Carlos Abreu Amorim, the coordinator of the Social Democrats Members. Accuses him of “intellectual dishonesty” the former banker, by comparing the BES to the country and the bop with the troika .
After one hour and 15 minutes, Salgado approaches the end of its first statement: “I apologize for being too longo.Senti it my duty to explain the events and intensíssimos months between October 2013 and July 2014. The idea that I am the Almighty ever made responsible way in the judgment of many Portuguese. Nobody gets out unscathed from a family war. A name can be deleted from the facade of a bank, but not the memory of a family with 145 years . Even the April revolutionaries did not feel the need to change the name changed when the regime. “
After one hour and 15 minutes, Salgado approaches the end of its first statement: “I apologize for being too longo.Senti it my duty to explain the events and intensíssimos months between October 2013 and July 2014. The idea that I am the Almighty ever made responsible way in the judgment of many Portuguese. Nobody gets out unscathed from a family war. A name can be deleted from the facade of a bank, but not the memory of a family with 145 years. Even April revolutionaries did not feel the need to change the name changed when the regime. “
While describing the facts that they consider “alone” triggered “an extremely negative reaction” that led to plummeting in the BES share, Salgado shows an A4 sheet with the evolution of BES on the stock exchange. Copies of graphs are minutes later distributed to Members.
Carlos Costa “never told me directly for me to leave the BES.”
Salgado speaks now about the last months and weeks ahead of the bank and points batteries to the Bank of Portugal. For the former president of BES, between March and June, there was “a contradictory situation,” that would follow “two successive processes of choice” of the new administration. According to Salgado, names of the Amilcar Morais Pires (former CFO and indicated to succeed as president Salgado BES) and Isabel Almeida (former financial director) “deserved initial acceptance” by the Bank of Portugal. Salgado says that even Carlos Costa came to tell you by phone about his succession, “Is who you understand.” Salgado said surprising that it has raised the issue of de Morais Pires suitability. “My colleagu e was the executive committee for 28 years on the bench, had never been questioned its suitability” and, with Isabel Almeida, enjoyed a reputation in the sector, he said.
Relations with the Bank of Portugal have changed, from March 2014, advocates Salgado. Had, since the end of 2013 a “media environment of constant debate about the group” focused on “bank leadership of the discussion.” “In the relationship between the BOP and the GES there are two phases. By March 2014 was a very difficult stage, but it was possible, with considerable effort, reduce the Group’s exposure to customers of the bank,” he said. After March, “the vague and imprecise to bop began a process that the deputy governor Sir called” moral suasion ‘”for the output Salgado. Paradoxically, accused: “The deputy governor told us that you want it to be myself to lead the transition of leadership.&# 8221; Salgado says that it was “reckless” their way out “before the capital increase.” Photography: Daniel Rocha
Ricardo Salgado today gives his version of BES fall. What can compare with the research Cristina Ferreira:. The chronicle of the end of empire
“I spoke to date than was the route BES and the group. I now recentes.Vou of events to be objective and factual, I leave the judgments to Your Excellencies.”
After listing the various impacts of the crisis on BES stressed: “We always wanted to keep the BES in Portuguese hands , gentlemen.” Hence “we have not exercised the State recapitalization line,” a decision not aimed “avoid revealing secrets” or “maneuvers” . BES and ESFG (which controlled BES) were subject to the supervision of bop, who still maintained a permanent team on the bench.
For the banker, the action of troika in Portugal, which ignored the successive banking warnings about the impact of austerity measures, proved “a missed opportunity” for the country.
Salgado makes walking back in time and goes back to the outbreak of the international financial crisis and the collapse of the US Lehman Brothers, to emphasize how the reading of the crisis in the Espírito Santo Group (GES) can not be separated from the international crisis and the “fragile “the Portuguese economy. Recalls failed OECD forecasts for the peripheral countries of the eurozone, says IMF projections, cites reports of agencies rating , notes analyst expectations regarding BES shares during the crisis and recalls Falling titles of the Portuguese market, the bank’s actions and Portuguese competitors. Until throws a question: “But how the BES lived the years of crisis” in 2012 and 2013? Response Salgado Salgado: R 20;Gotta break the closing of international markets.” Then lists the various issues of debt and capital increases the bank.
Ricardo Salgado not yet avoids criticism launched at troika in the evaluation and taxes to Portugal, which claims to have had a detrimental role for national companies.
The banker admits he may have “made wrong decisions” and advances the macro-economic analysis in recent years, the financial crisis, triggered by the bankruptcy of Lehman Brothers, the crisis of public debt, not to mention the detrimental role of rating agencies in banking activities.
“ For weeks and months, my family and I were summarily tried himself in public opinion . All totally false stories, but that just to hide the truth of the facts.”
“I have forwarded me to silence,” “I’ve been working to defend the dignity and the honor of my family and mine.” Ricardo Salgado began by quoting a Chinese proverb: “. The leopard dies when leaves your skin and when a man dies leaves his reputation”
Fernando Negrao announced that Ricardo Salgado will “a long opening speech”, “beyond an hour.”
This is probably the highlight of the work of the committee. In the room where will intervene were raised, not a row of chairs intended for the media, as usual, but three. And are not enough. Many journalists also sit up in the seats reserved for the advisors of the parliamentary groups. The room is completely filled and everyone prepares to start listening Ricardo Salgado in his first public intervention since leaving the presidency of the BES, since it was made accused in the case Mont Blanc on suspicion of tax evasion, fraud and corruption. Since the bank failed. Salgado will start to read a long statement about your journey ahead of him who was in the last decade the second largest private bank, controlled by an intricate and indebted conglomerate.
It was 9:08 a.m. minutes when Ricardo Salgado entered the room where you will be asked in the context of the parliamentary committee of inquiry to BES-GES management. The former banker came accompanied by advisers and his lawyer, the son of Daniel Proenca de Carvalho.
After leading the Holy Spirit group for over 22 years, Ricardo Salgado will undergo ” an examination “of Parliament on the facts that led to the collapse of this summer GES and by extension of the GES.
On the day Ricardo Salgado and Jose Maria Ricciardi are heard in Parliament, the Daily News revealed a letter from Ricciardi in this responsibility by the cousin of BES fall.
Ricardo Salgado enters quietly, in room six of the parliamentary committee for the “back door” of the room. Has appointed himself a battalion of photographers and television picture reporters, who, seeing him in the back of the room door, accompany it to the top of the hearing table. It is accompanied by his lawyer, Francisco Proenca de Carvalho. A second dwells at the photographs and sits. Photography: Daniel Rocha
Already quorum in committee. Ten members of five parliamentary groups. It’s one minute to the appointment.
At this time, the room 6 of the committees is crammed and are still present only two Members, Teresa Little Angel, CDS, and George Vala, PSD. The presence of journalists, 25, and photojournalists and image, 12, already illustrates the importance of this hearing.
There are less than 15 minutes to the start of the most anticipated of the hearings of the Parliamentary Commission of Inquiry to the management of GES / BES. Ricardo Espírito Santo Salgado, the man who was known at the height of his power, as “owner of all this,” is prepared to respond to questions from Members. You can start the hearing with a statement, if you wish. It may also, within the limits that the law gives it, invoke the “secret justice” to avoid some matters that have to do with the investigations in which it is accused (“White Mountain”), or “target” (“universe Spirit Holy “)
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