João Almeida, a member of the CDS-PP and rapporteur for the new commission of inquiry into Caixa, requested on Wednesday, March 27, that the secret report that evaluated the performance of the Bank of Portugal (BdP) in BES , whose delivery was refused again by the supervisor, claiming "professional secrecy" and that the document is not intended to be the subject of the new commission: the Recapitalization of Caixa Geral de Depósitos and the Bank's Management.
"As rapporteur, I would ask that the internal evaluation report on the action of the supervisor in the BES case be submitted to this committee, following the response of the Banco de Portugal that this report is kept under professional secrecy and that it has no with the object of this commission, "said João Almeida, before the second hearing to the Governor of the BoP, Carlos Costa, at the Second Parliamentary Inquiry Commission (CPI) to CGD, which was created after the disclosure of the audit report of EY to the management of Caixa between 2000 and 2015, which ended with losses of 1,647 million euros in 186 credit operations that turned out to be ruinous.
According to the centrist deputy, "the argument under the banking secrecy does not reap", since, he recalls, still "yesterday, EY confirmed that Banco Espirito Santo (BES) is the national financial group flagged in the audit of Caixa's management between 2000 and 2015, as responsible for losses of € 519 million from the CGD group in 2014 and 2015 (€ 348 million in 2014 and € 171.5 million in 2015).
This is the third time that the entity led by Carlos Costa refuses to deliver the report that had the technical support of the consulting firm Boston Consulting Group (BCG) and has more than 600 pages, and that points very critical conclusions to the action of Carlos Costa who were never revealed. What happens after I have already been refused Parliament twice on other committees of inquiry.
In early March, the JE reported that the PS joined BE and in the request of the internal report that evaluated the performance of the Bank of Portugal in the BES case. While blockers want to analyze supervisor failures that could be extended to CGD, the Socialists require a secret audit to assess CGD's exposure to BES.
The parties, like the CDS, want to have access to the internal report that evaluated the supervisor's action in the BES case, in order to confront the governor of the Banco de Portugal (BdP) in the new CPI to the management of the Caixa that intends to go further than in the establishment of the facts that caused losses of millions of euros in the public bank.
The Socialists also included this secret report in the list of documents requested by the party that will be delivered in Parliament under the new CPI to the Caixa.
It is recalled that, even before BES's resolution on August 3, 2014, it was reported that CGD's exposure to companies owned by the Espírito Santo Group was around 300 million euros, but all the credits had real guarantees such as shares or real estate. Among the companies that were financed with CGD was Espírito Santo International, which controlled the Espírito Santo Financial Group (ESFG), then BES's largest shareholder, and in the meantime, both companies had been declared insolvent.
The secret report was requested by the BES parliamentary inquiry commission that the supervisor did not want to deliver in 2015. And it was requested again the following year by leftist deputies in the Banif case inquiry commission. The document was prepared by the Bank of Portugal's evaluation and decision-making committee on the supervision of BES, with the technical support of BCG. And you never got to see the light of day
At the time, the BOP argued that it did not have to make available "information or documents whose contents are not related to the resolution measure" and therefore considered them subject to "professional secrecy". An argument that will now be more difficult to use in the face of the new banking transparency law, which will oblige banks to send information under bank and professional secrecy to the commissions of inquiry and should be useful to the new CGD management inquiry.
It should be recalled that the law governing the disclosure of large bank borrowers and strengthening parliamentary control in access to banking and supervisory information provides for "access to information by parliamentary inquiry committee" on "transparency on capitalization operations of institutions public funds "and" collection and communication to the Assembly of the Republic of relevant information ".
In other words, the new law specifically provides for the Banco de Portugal to exchange information in the context of parliamentary inquiries whose purpose is specifically to investigate or examine the actions of the authorities responsible for the supervision of credit institutions.
The BES's self-assessment in the BES case leaves criticisms of the supervisor's actions and points out failures in the follow-up done to the bank, he told Jornal Econômico source close to the process, confirming the doubts left by the internal evaluation committee, reported by Jornal de Negócios March 23, 2016, when he reported that the report known as Costa Pinto, inheriting the name of the chairman of the audit board of the governor that led it, goes until the beginning of the last decade.