In what is expected to be the largest evasion of responsibility recorded in the history of Portuguese banking, the governor of the Bank of Portugal is to face the music on Thursday as he answers questions posed by MPs as to what went wrong at the Bank of Portugal which failed to monitor the now collapsed Espírito Santo financial and property group.
Carlos Costa’s keenly awaited list of flimsy excuses will follow a statement from Finance Minister Maria Luís Albuquerque whose proven skill in avoiding the blame in the 'swaps' enquiry should stand her in good stead as she explains, straight-faced, the Government’s viewpoint on the BES scandal and the hastily constructed rescue deal using the Special Resolution fund from Europe.
The Bank’s governor will be up before the laugh-a-minute Committee on Budget, Finance and Public Administration, indeed the committee asked for him specially. Sadly the make-up of this group of MPs is likely to give Costa an easy time as they are PSD/CDS coalition members.
The Minister of Finance will be attempting to lecture the Standing Committee which replaces parliament during holiday periods when something urgent comes up. This could be a less than fun experience for the PM's favourite Minister.
The presence of Albuquerque was requested by MP Eurico Brilhante who said it was urgent that she clarified what went wrong at BES, creating a crisis which involved some rapid parliamentary work last Sunday to enable the 'good bank, bad bank' solution legally to be set in motion.
It will be interesting to hear how the €4.9 billion injected into Novo Banco, formerly known as BES, does not prejudice taxpayers, is not a bailout and seems to be good news all the way, depending on which political party you follow.
Even more pleasurable for the nation's media will be the statement promised from former BES chief Ricardo Salgado who on Thursday evening is to inform a waiting world about the ‘sharp fall’ in the BES share price. Salgado will be remebered for this one description alone, should he expire tonight.
Salgado paid his bail of €3 million on Tuesday by bank transfer, hopefully the sender paid any charges.
