Monday , January 25 2021

Court of Auditors says it is working on the audit of Novo Banco and is not moving forward with deadlines – O Jornal Económico

The Court of Auditors has not advanced the deadlines for granting the audit to Novo Banco, and has therefore left open whether the capital of the Resolution Fund will reach the term of the contract for access to Novo Banco.

“As previously reported, the Court of Auditors received a request for an audit by Parliament, and it continues to do so,” the Court of Auditors told Jornal Económico.

The PSD, led by Rui Rio, has pledged to allow Novo Banco’s injections to make the future variable budget feasible, but only if the ongoing Court of Auditors audit ensures the justice of those injections.

In October, the Republican Assembly approved an audit by Novo Banco of the Court of Auditors. Achieving consensus on the text inspected by PSD and PS.

The text of this request states that the audit “may be conducted in stages, by decision of the High Court, if the results are provided in stages if necessary, and that the questions asked should be given priority.”

But the Court of Auditors also does not comment on whether there will be a phase-in amendment to save the contract signed between the Resolution Fund and Novo Banco.

In the so-called TdC audit, and as reported at the time, “operations or actions” justifying the use of the affected capital mechanism “carried out until 31 December 2019” and prioritize everything that happens at the end of this year “if there are new calls for Resolution Fund” warning.

“It is proposed to extend the scope of the audit already required by Parliament to the Court of Auditors, which included the operations and management acts created there and the need to transfer funds from the Resolution Fund to the New Bank,” reads the joint text of the PS and PSD.

The audit, under the terms of the proposal, should be aimed at “valuing and recording in the balance sheet and selling real estate assets, non-performing loans and other assets (eg insurance industry), both at the time of the BES resolution and after the Bank was sold to the Lone Star Fund.” The Resolution Fund could cover it.

The document also includes several questions that the parties want to see answered by the audit led by José Tavares, such as whether “when these assets were entered in the bank balance sheet, there was a record of amounts not accepted by employees. Without proper value or accounting valuation”, Lusa October as reported.

Deputies expressed the need to know whether the “impairment policy of assets already sold or sold under the terms of the restructuring plan” is appropriate or in view of the current regulations, or “Novo Bank (in the restructuring process) has created to the detriment of the balance sheet ”.

“Do the sales made adequately protect the public interest since the devaluation they were targeting with the sale?” The parties still question, whether they want to know whether there has been a conflict of interest (not just for identification purposes) to AML in these direct or indirect businesses. when applying the rules on), which is a “prohibition on the direct or indirect participation of entities in the Lone Star Fund or its universe”.

The purpose of the proposal is to identify the audits that are “Novo Bancon’s best management practices and aimed at enabling the activation of a contingent capital mechanism aimed at achieving a certain net result from the Bank”.

The TdC should prioritize operations or actions that “justified the use of the contingent capital mechanism” until 31 December 2019, as well as actions taken by the end of this year, “Resolution on new calls for funds, with the aim of providing effective information support to parliament in due course ”, Lusa then reported.

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