Government mandates Deloitte to conduct a new audit of Novo Banco

In response to Lusa, an official source affirmed that, after the last capital injection of the Resolution Fund in the Novo Banco, in the amount of 1.035 million euros, "the procedure foreseen in the new special audit was immediately complied with" .

The government mandated the consultant Deloitte to carry out a new audit of Novo Banco, mandatory after the capital injection made in May by the Resolution Fund, an official source from the Ministry of Finance told Lusa.

In response to Lusa, an official source affirmed that, after the last capital injection of the Resolution Fund in the Novo Banco, in the amount of 1.035 million euros, "the procedure foreseen in the new special audit was immediately complied with" .

Thus, Finance reports, on May 12, Banco de Portugal was asked to propose the appointment of an independent entity, which the central bank indicated on May 29 that it should be Deloitte.

“On June 2, Deloitte and Novo Banco were notified of the performance of the special audit”, adds the Ministry of Finance.

Lusa had already reported, on June 18, that Banco de Portugal proposed to the Government that it be the consultant Deloitte to carry out the new audit to Novo Banco, mandatory by law after the capital injection last May.

Deloitte is the same consultant that is carrying out the special audit of BES / Novo Banco's management acts for the period between 2000 and 2018 (that is, covering both the period before and after BES's resolution and the creation of Novo Banco) , which should be known in July.

It was this audit that, in May, was the basis of a political crisis between the Prime Minister, António Costa, the then Minister of Finance, Mário Centeno, and the President of the Republic, Marcelo Rebelo de Sousa, after the head of the Government having said that the injection of Novo Banco would only be made after the audit was known when it had already been carried out (in the amount of 1.035 million euros).

As for the new audit, this is mandatory by law. According to legislation passed last year in parliament, when a bank is recapitalized with public funds (as is the case with the capital injection of the Resolution Fund in Novo Banco), “the Government orders a special audit by an independent entity, per se appointed on a proposal by Banco de Portugal, at the expense of the audited institution ”.

Born in the resolution of BES (on August 3, 2014), 75% of Novo Banco was sold in October 2017 to the North American investment fund Lone Star, maintaining the Bank Resolution Fund 25%, in a solution agreed between Banco de Portugal and Government.

Lone Star paid no price, having injected EUR 1.000 billion into Novo Banco. In addition, a contingent capital mechanism was agreed, providing that for eight years the Resolution Fund would compensate Novo Banco for capital losses on a set of assets 'inherited' from BES up to 3.890 million euros.

Since then and until today, the Resolution Fund has injected 2.976 million euros and may still invest more than 900 million euros, values ​​that each year have an impact on public accounts since the Resolution Fund is an entity within the sphere of State.

In the last capital injection, referring to 2019, Novo Banco asked the Resolution Fund for a capital injection of 1.037 million euros, but the Fund transferred 1.035 million euros, not transferring the amount corresponding to the bonuses of the members of the Board of Directors Executive led by António Ramalho, to be paid in the future, but corresponding to 2019.

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