[ad_1]
At the end of Friday, the version of Deloitte’s special audit was sent, already purified of data that violates bank secrecy, that is, the name of the clients, but not only, confirmed the Economic Journal.
The newspaper Eco said that the deputies already had the publishable version of the Deloitte audit, and that this Tuesday at noon, the committee table and the coordinators met to define the work schedule. According to the online newspaper, after lunch, various proposals from the parties will be voted on to hear from various stakeholders and make the audit report public.
The urgency of creating all the conditions for the audit to be made public comes at a time when several opposition parties question the independence of the work prepared by Deloitte & Associados SROC, following the news in the Economic Journal that Deloitte Spain had notified to Novo Banco in one of the sales that generated losses of 250 million for the bank, covered by the contingent capitalization mechanism, and that are covered by this independent audit, the sale of GNB Vida.
The 397-page document is expected to be released shortly, a source connected to the case confirmed. This Tuesday, September 8, a meeting of the Budget and Finance Committee will be held, which will address the issue, as the Friday edition of JE advances.
The special and independent audit, which aimed at a wide range of operations that entailed losses for Novo Banco, between August 4, 2014 and December 31, 2018, amounting to 4,042 million euros, detected credit impairments amounting to 2,320 million in 201 operations.
Loan impairments represent 57% of the total four billion losses. Almost all credit losses result from impairments, since the only sale of the past due portfolio covered by the analysis is that of Nata I.
Deloitte makes recommendations for improvement to Novo Banco
The audit report to BES / Novo Banco “describes a set of serious weaknesses and deficiencies in internal control” up to 2014 of BES in the process of granting and monitoring credit, as well as in relation to investment in other financial and real estate assets .
“The report describes the progress made in these matters during Novo Banco’s period of activity,” the Government admitted in a statement.
But “despite the evolution verified in the period of activity of Novo Banco”, the Government considers that “it is essential that all the necessary actions are taken to ensure the rapid and complete correction of the issues identified in the report of the special audit. It reiterates the importance of fully complying with the commitments assumed contractually, that is, with the Resolution Fund, which must evaluate the situations identified in light of the respective prerogatives, ”revealed the Ministry of Finance.
Novo Banco also admitted in a statement that there are recommendations from Deloitte to the bank. Novo Banco says it is “fully committed to continuing the path” to “fully comply with the indications” referred to in the audit report.
At the press conference, the CEO gave examples. “There are two contradictory opinions when hiring a consultant for the purpose of selling a real estate portfolio” and Deloitte asks for clarity on the compliance rules, on “whether or not we should allow a particular consultant to work, for example, an operation in Spain when this operation in Portugal cannot work ”.
It is also suggested that “we proceed to make counterpoints for the evaluation of properties, when there are significant deviations between independent evaluators, in the evaluations that they do from one year to the next”, Deloitte asks that the evaluators explain well the differences of evaluations. “We will definitely do it,” he guarantees.
There is also a criticism from Deloitte that the bank did not reassess its holdings in Restructuring Funds. “As you know, we did this revaluation in the first half of 2020 and we did not do it before because the CCA contract did not allow it to be done until October 2019. The fair value should have been realized, says Deloitte. We have already done it ”. Novo Banco registered a devaluation of 260.6 million of these restructuring funds, in response to the decision contained in the SREP letter from the ECB.
[ad_2]
