According to KPMG, the BES plan may have generated a profit of 700 million euros for an intermediary outside the group. This is the sale of bonds within the GES.
The use of intermediaries by Banco Espírito Santo (BES) in the sale of bonds in 2014 and the placement of capital gains outside the group was something that one of the KPMG auditors who followed the institution never saw in her career.
As a witness for the second consecutive day in the trial for the BES/GES case, Inês Viegas Neves was questioned by the Public Ministry (MP) about the way in which the issuance and marketing of bonds is carried out within the Espírito Santo Group. were carried out in 2014 and whether the method followed was common to other financial entities, to which the tax auditor admitted that it was not.
“I had never seen it. I have seen many exercises, but I don’t remember seeing an operation like this.. Especially in this case where it is kept outside the issuing entity [das obrigações] such a significant value,” said Inês Viegas Neves, adding that there was also “a reputational and fiduciary risk” regarding BES.
During the morning session held at the Central Criminal Court of Lisbon, Inês Viegas Neves described the operation regarding the obligations, describing that the bonds issued by BES were placed in the primary market by BES Vida and another entity and later purchased by ES Bank Panamá, which resold to BES customers for approximately triple the value.
Pedro Queiroz Pereira in 2018. “Ricardo Salgado is a compulsive liar” and “he thought he owned the world”
This situation generated capital gains that were not recorded in the accounts of ES Bank Panama, with the then KPMG auditor assuming that “with these operations, an intermediary outside the group could have generated a profit.” capital gain of 700 million euros” (ME).
During the afternoon, Inês Viegas Neves also analyzed the provisions that were made in favor of GES’ Venezuelan clients and that, through The letters issued were binding on BES.That is, if the ESI company (holding company in the financial and non-financial area) did not pay, BES would pay.
According to the document presented at the hearing, the report from the end of 2014 indicated 1,126 ME of provisions, including provisions for these Venezuelan clients for 314 ME. However, this value would be progressively revised in the accounts, rising to 385 ME at the end of 2015 and 422.9 ME at the end of the following year.
“The gentlemen from Venezuela were considered institutional clients and did not fall within the scope of the provisions. They only entered this area thanks to these letters… he revealed a commitment to pay these gentlemen. [Favorecidos?] At least they had this instrument in their hands,” he highlighted.
Inês Viegas Neves, who spent more than eight hours answering the deputy’s questions over a day and a half, ended up being questioned by her assistants in the afternoon. Questioned by the BES Settlement assistant, she denied that it had ever been transmitted to her by the assistant commissioner Francisco Machado da Cruz who had a document signed by Ricardo Salgado approving entries in the group’s accounts.
He also denied knowledge at the time of the meeting on March 28, 2014 between GES’s accountant and a Luxembourg law firm in which Machado da Cruz assumed that there was “a best-intentioned error” in the company’s accounts. ESI. but rather a fake.
Inês Viegas Neves will continue to be heard on Wednesday, now to respond to the defenses of the accused, having canceled the testimonial hearings scheduled for this day, namely the investigation of former prime minister Passos Coelhowho led the Government during the collapse of the BES in 2014.
In addition to the former president of the BES, Ricardo Salgado, 17 other defendants are also prosecuted: Amílcar Morais Pires, Manuel Espírito Santo Silva, Isabel Almeida, Machado da Cruz, António Soares, Paulo Ferreira, Pedro Almeida Costa, Cláudia Boal Faria, Nuno Escudeiro, João Martins Pereira, Etienne Cadosch, Michel Creton, Pedro Serra and Pedro Pinto, as well as the companies Rio Forte Investments, Espírito Santo Irmãos, SGPS and Eurofin.
Source: Observadora
