The second phase of the Novo Banco audit is almost complete and should be approved by the Court of Accounts (TdC) at the end of this month, the institution’s president, José Tavares, told Lusa on Monday.
“The Court of Accounts [TdC] the second phase of the audit of Novo Banco has practically concluded, which will soon be submitted for court approval,” said José Tavares, who revealed that he hopes to deliver the document to Parliament in June: “I would like to do it. I think it will be approved at the end of the month or beginning of July.”
Asked about the reasons for the delay in the presentation of the audit, after having stated on May 2 – in a hearing in the Budget and Finance Committee, within the framework of the consideration of the State Budget proposal for 2022 – that this would be done “very much”, soon” and even anticipating the delivery forecast to the deputies for the end of May or the beginning of June, José Tavares justified it with the need to listen to Novo Banco.
The contradictory judgment was carried out and now the final version and the approval by the court need to be prepared. The contradictory took the normal time, they are complex works and we hope they will always be of the best possible quality, so it also has its time”, clarified the president of the TdC.
In the parliamentary hearing at the beginning of May, José Tavares recalled that in the previous legislature, the Assembly of the Republic had requested an audit of Novo Banco from the institution, delivered in May, guaranteeing that the new audit would be sent as soon as possible.
“The first report focused on the public financing from Novo Bancothe second report will focus on the management of Novo Banco with public financing”, he explained.
In May 2021, the TdC approved the Audit Report on the public financing of Novo Banco, following the request made by the Assembly of the Republic.
The body considered that “the declaration of the calculation of the capital deficit was not presented” of Novo Banco, which “the Resolution Fund has the duty to demand”, according to the disclosed audit.
In another of the conclusions, the report stated that “Novo Banco’s obligation to report information on the execution of the Contingent Capitalization Agreement has not been duly fulfilled, due to the lack of formalization of the agreement on the form and substance of the support of this information. and for the delay in preparing this support by Novo Banco [face ao prazo contratual de trinta dias]claiming to depend on audited accounts”.
For the TdC, despite the fact that the public financing of Novo Banco has contributed “to the stability of the financial system, mainly because the liquidation of the bank was avoided and the systemic risk was reduced”, “Its impact on the sustainability of public finances was not minimized, nor was moral hazard reduced”.
The entity chaired by José Tavares also highlighted that “there was a lack of transparency in the communication of the impact of the resolution of Banco Espírito Santo and the sale of Novo Banco on the sustainability of public finances.”
Source: Observadora
