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BES' Ricardo Salgado justified €1.3 billion black hole as an 'accounting error'

salgadoBESCarlos Costa, the current governor of the Bank of Portugal looks increasingly like a man in need of a new job as it emerges that he knew of the black hole in Banco Espírito Santo’s account  as far back as December 2013.

The serious problems at BES were only revealed in April 2014 when it was announced that Ricardo Salgado (pictured) justified the loss as being an "accounting error," but error or not, it was enough to bring down the bank.

An exchange of letters between the supervisor and Salgado, revealed in today’s Expresso, shows that on December 10, 2013 the Bank of Portugal had knowledge of a black hole of €1.3 billion at Espírito Santo International.

However, the governor of the Bank of Portugal saw fit to conceal this news until April this year by which time, conveniently, a prospectus for a capital increase for BES had been published which did not refer to any such problem in the Espírito Santo empire.

In a letter sent by the deputy governor of the Bank of Portugal on December 23, 2013 he asks for explanations about this hole in the accounts and requires protective measures rapidly to be put in place at Grupo Banco Espírito Santo, measures which Salgado never applied.

The rest is living history as the investigation into Salgado and other family members controlling the various Espírito Santo companies continues.

Comments  

0 #5 Charles Small 2014-10-19 05:07
BES took away the overdraft facility and came down hard on many clients whilst paying Renaldo a massive sum to persuade and then swindle investors in their scheme.It remains to be seen if the system has the brass neck to sweep the scandal under the carpet.
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+3 #4 Attila 2014-10-13 18:58
Well done graziano & ursula.

You are getting close to a solution for all dodgies - not just 'banksters'. But it is a bit final. And may make some into folk heroes.

The point is - given the arabic background of almost all Portuguese beheading is quite popular at the moment; so may be of use.

That said, given the Portuguese 'bull tormenting' enthusiasm and consequent short d***s ... why not castrate them ?

Chemically - we are not savages !!!

It takes the bad guys out of the gene pool and has the bonus that - with all the publicity - everyone is aware of their humiliation.

And hopefully other bad guys are saying to themselves ... 'I think I will behave as this alternative is too embarassing ...'

Dodgy Portuguese and 'banksters' watch out !

Lets have a big hand for graziano & ursula ! They have it figured out.
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+4 #3 graziano & ursula 2014-10-13 08:53
Well, I've heard that in Vietnam they execute naughty banksters... :-*
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+1 #2 Ed O.Leary 2014-10-12 18:54
Agree with other commenters on this.

What is the point of Portugal being allowed to continue as a member of the EU when for decades it has just 'parodied' all the processes and procedures of state administration.

Pick any example you like - PPP, Submarines, Relvas degrees, Passos Coelho earnings - various banking frauds like BPN's before this BES one. ad infinitum.

Everything that should have been regulated - just a joke !

And yet we north europeans were sent here, assuming that EU standards of 'regulation' applied in southern europe. No-one telling us that we were entering Europe's basket case'.

Now we hear multi-millionaire football managers also lost their life savings to these clowns. Sorry guys - but you at least being Maghreb / Berberish could have guessed this kind of thing was possible.

We coud not at the time assume such widespread failure. Now we realise it was only ever the norm.
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+5 #1 Ana P 2014-10-12 17:57
Zero tolerance! It's high time to no longer buy into any of this and account all these people for their actions.
And money involved has to come back.
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