Joe Berardo owes Caixa Geral de Depósitos (CGD) €280 million, according to revelations in a forensic audit carried out by the Government that has analysed how the State-owned bank was managed between 2000 and 2015.
CGD loaned the money to enable the businessman to buy shares in BCP, without demanding the guarantees necessary to safeguard the loan.
Joe Berardo's group now is one of the largest debtors of the State bank with his name added to dozens of high-risk debtors who were excused the normal banking collateral protocols.
At the time the credit was granted to Joe Berardo's group, Caixa was chaired by Carlos Santos Ferreira, with Maldonado Gonelha as vice president.
CGD's managers back then did not adequately assess the default risk, nor did they demand adequate guarantees to cover the loans.
Later, with Faria de Oliveira presiding over the public bank, Caixa demanded additional guarantees for the loan. The Madeiran businessman assigned part of his modern art collection as guarantee, thus raising concerns that the gallery in Lisbon that houses the art, the Museu Coleção Berardo, might end up with little left to display.
Caixa Geral de Depósitos already has submitted the forensic audit to the Public Prosecutor's Office, which will look at how these huge loans were authorised as they broke all sorts of lending rules.
