Bank of Portugal condemns BES. Fine of 6.8 million euros to the bank and three former administrators – The Jornal Econômico

Bank of Portugal condemns BES. Fine of 6.8 million euros to the bank and three former administrators - The Jornal Econômico


The Bank of Portugal (BdP) condemned BES and three former bank administrators to pay 6.8 million euros for the omission of obligatory communication of the problems associated with BES Angola's portfolios.

The supervisor condemned Banco Espírito Santo (BES) and three of its former directors – Ricardo Salgado, Amílcar Morais Pires and Rui Silveira – for "omission of compulsory communication to BdP of the problems associated with BESA's credit and real estate portfolios", the extinct BES Angola.

BES was convicted of a single fine amounting to € 3.4 million, Ricardo Salgado to a fine of € 1.8 million, Amílcar Morais Pires was fined € 1.2 million and Rui Silveira to a fine of 400 thousand euros.

The practice of "particularly serious infractions" ran between October 3, 2013 and August 3, 2014, prior to BES's resolution, which occurred on August 4 of that year.

The BdP said that the three former administrators challenged the decision of Banco de Portugal to the Competition, Regulation and Supervision Court.

Also today the supervisor imposed a fine of three million euros on KPMG, which audited BES, for incomplete and false information to the supervisor, before the bank's resolution in summer 2014.

In addition to the audit, two KPMG officials were also convicted "for the practice of particularly serious infractions."

According to the Bop, the auditors were aware of the risks related to BES Angola's credit portfolio and the problems it caused to BES in Portugal and did not communicate them to the supervisor.



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