After all the allegations, recriminations and evidence of mismanagement, an official DCIAP (central department of investigation and penal action) investigation has been opened into what national tabloid Correio da Manhã calls ‘suspicions of the practice of the crime of ruinous management of State Bank Caixa Geral de Depósitos’.
The probe began earlier this year, even before the parliamentary inquiry into the parlous state of the bank began, and is “in secrecy of justice”.
Thus while the parliamentary commission continues to analyse CGD’s accounts going back over five administrations and 15 years, DCIAP investigators will be passing “a fine-toothed comb” over all the loans conceded by CGD that are “at risk of failure”.
These include millionaire loans to two Algarve resorts – conceded during the time former Socialist MP and convicted fraudster Armando Vara was on CGD’s board (click here) – as well as credits of €100 million to Group Espírito Santo for the Herdade de Comporta resort.
Repayments on Herdade de Comporta ceased in 2014 when BES bank collapsed, and though American equity firm Armory Merchant Holdings was said to be ready to pay out €400 million for it, the luxury remains ‘impounded’ as a result of the BES criminal investigation (click here).
According to CM, bad loans handed out by CGD just during the four years between 2011 and 2015 came to 6.1 billion euros.
