Monday, March 14, 2016

Spending on state counsel in the case of swaps will have in ten million – publico

                 


                         
                     


                         

                 

 
 

The amount spent on advisors to assist the State in the case of swaps now will almost ten million euros and the bill should not be here, especially if the sentence appeal London, which gave reason to Santander. Metro Lisbon, only after being questioned by PUBLIC released the amounts spent on these direct adjustments, now takes charge of 4.1 million euros. The costs were shared by the four transport companies involved in the judicial process, depending on the risks of the contracts signed.

A first calculation, based on the information disclosed in public procurement platform (Portal base) and data of Metro do Porto, it had allowed to conclude that the State’s costs of legal and financial advisors were around five million euros, as the PUBLIC reported last week. However, the value comes even twice, now that the Lisbon Metro has made available on the Portal Base amounts paid in these direct adjustments. Carris and the STCP, however, still do not comply with the law, which requires that these awards are made public.

Despite this constraint, it is possible to reach more approximate accounts of expenditure incurred evaluation and subsequently to the defense of the four public carriers, before the lawsuit filed in London by Santander. Is that according to the contracts consulted by PUBLIC, was made a apportionment of costs by the companies, depending on the potential losses that swaps piling up.

It is one of the contracts between the Lisbon Metro and Cardigos, the Portuguese law firm that most closely followed this case, it appears this burden sharing. In a letter sent by that office, dated November 24, 2014, a table is included which is assigned a share of 48.5% of the costs at first company, whose swaps registavam in October last year, potential loss of 642.1 million euros. In the Metro do Porto is given a share of 39.5%, followed by STCP (8%) and Cars (4%).

Apportionment by companies
This table, although in the annexes to the Cardigos contract, was also used for the procurement of other advisors, all of them British: Lipman Karas, JC Rathbone and 3 VB. This fact is confirmed in the contracts between the Lipman Karas and the Lisbon Metro, where the office of UK lawyers describes in a letter of July 23, 2013, that “each company will be responsible for paying a percentage costs “and that this figure” reflects the exposure of each company as a result of toxic transactions, “a reference to swaps signed with Santander.

from these percentages and amounts paid and already released by Metro do Porto and the Lisbon Metro, which can reach the amount already spent by the state in this case. If the Lisbon Metro, responsible for paying 48.5% of the costs spent between August 2013 and May 2015, approximately 4.1 million (with Cardigos, Lipman Karas, JC Rathbone and 3 VB), the overall burden of the four companies with these advisers was 8.4 million. Of these, close to 3.3 million fit the Metro do Porto, 673,800 euros to STCP and 336,900 euros to Carris. But awards do not stop there.

It is the ten million calculated by PUBLIC also include the use of consultants by other public bodies, including the Management Agency of the Treasury and Public Debt (556, 3000 euros, including the amount paid to the financial advisor Stormharbour to evaluate the swaps in 2012) and the Directorate General of Treasury and Finance (529,000 euros, broken down by Cardigos and another company Portuguese lawyers, the Leitão Morais, Galvão Teles, Soares da Silva & amp;. Associates)

Other bills
also enter these accounts the funds that Metro Porto paid to the management Agency of the Treasury and Public Debt to make it responsible for managing swaps . 178 thousand euros were paid, but it is unknown whether the other three companies have not also taken charge of this kind which were not disclosed. That company also spent 77,500 euros to pay the lawyers Correia Fernandes & amp; Associates and Financial Brunswick, an expert in crisis communication. And finally, was also published in the Portal Base a 190,000 euro contract between Cardigos and Regional Planning Department and Finance to monitor the legal proceedings of public companies Wood signed swaps Santander.

in contracts already disclosed by the Lisbon Metro, there are attachments sent by Lipman Karas, the British office to whom the companies more money paid (more than 6.8 million euros in total), which are illegible. In the letters exchanged with the administration of state carrier is made, for example, a comparison with the expenses that Santander himself had with legal counsel. After explaining that will have to increase the fees for about 650,000 euros, the law firm stated that the price is “less than the amount of 2 million to 4 million pounds [2.6 to EUR 5.2 million , at current exchange rates] that Santander foresees spending. “

the importance of this finding relates to the fact that the UK court gave reason to Santander power compel the Portuguese State to bear the burden the bank had with the court proceedings. It is not known, however, that the money in question. But this information will be known soon, as the condemnation of the details will be released by the court until March 23.

What the Commercial Court in London has already decided earlier this month, is that the bank has reason the complaint made in 2013, after the four companies have canceled the quarterly payment of contracts. And, therefore, they are required to return this money and coupons that follow and the final statement of account when the swaps they reach maturity or are settled in advance. There is still, however, the possibility that is being considered within the Government, to be appealed by the state.

                     
                 

LikeTweet

No comments:

Post a Comment