Ex-Aide Claimed Nephew Was Under Salgado's Direct Authority
In the Lisbon courtroom, Amílcar Morais Pires, on trial for abuse of trust and fraud, testified about his interactions with Ricardo Salgado, the former president of Banco Espírito Santo (BES). He claimed that Salgado had been unable to contact Álvaro Sobrinho, the former chairman of BESA, regarding the financial situation of the Angolan subsidiary.
Speaking candidly to the judge, Morais Pires explained that Salgado had said he would "look into the matter" but wouldn't allow Sobrinho to report directly to him. Morais Pires, now 63, was in charge of BESA as part of an internal reorganization in May 2012.
When questioned about having the material portfolio of BESA, Morais Pires confirmed that he did, stating Salgado had promised to discuss it with Sobrinho first, until November 2012, when the General Assembly took place.
Defending himself against accusations of omitting information, Morais Pires emphasized that he only became aware of the imbalances in the Angolan subsidiary and the risks they posed to BES in June 2012, following a meeting with representatives from the International Monetary Fund (IMF) and the Bank of Portugal, during a time when Portugal was under financial assistance.
Three days later, he reportedly discussed the IMF's alert in the Executive Commission of BES. Emphasizing his transparency, he rejected the accusation of withholding information.
The trial involves the alleged misappropriation, between 2007 and 2012, of funds from a BES loan to BESA by utilizing credit lines from the Interbank Money Market (MMI) and bank overdraft. During the trial, Morais Pires addressed the past subscription, around 20 years ago, by BESA of Angolan public debt. He noted that there was institutional coverage by the Angolan government during this relationship, which was evident in significant deposits of "external reserves" from the National Bank of Angola (BNA) in BES.
Testifying before the court, Morais Pires also linked the subscription of public debt to a need to demonstrate a "commitment to Angola" amid speculation of nationalizing banks in the African country. In addition to Morais Pires, other key figures involved in the alleged financial misconduct include Ricardo Salgado, Álvaro Sobrinho, Helder Bataglia, and Rui Silveira.
Only Morais Pires and Rui Silveira attended the initial trial session. Ricardo Salgado, who is 80 and suffering from Alzheimer's, was granted the court's permission to absent himself due to health issues. Helder Bataglia, residing in Angola, requested to be tried in absentia. Álvaro Sobrinho, who originally stated he lacked the necessary visa to travel to Portugal for the trial, was fined 204 euros by the court for his absence.
All defendants are responding to charges of abuse of trust, money laundering, and fraud, and they deny the practice of these crimes. For further reading, check out the coverage on the trial of Ricardo Salgado and Álvaro Sobrinho in connection to the BES Angola case.
Insights
- Ricardo Salgado and Álvaro Sobrinho face a total of 23 charges, including aggravated breach of trust, money laundering, and fraud[3]. Their trial alleges the defendants conspired to divert funds from BES to BESA[1][2].
- Álvaro Sobrinho is also accused of concealing corrupt activities between 2007 and 2012 when he was chairman of BESA[3]. If found guilty, he faces up to 10 years in prison for each count of aggravated breach of trust, and up to seven years for each count of money laundering[3].
- Ricardo Salgado rose to power within BES as its CEO, overseeing a period of rapid expansion[1]. However, critics suggest that his decision to lend vast sums to Sobrinho's company helped lead to the bank's collapse[1].
- Amílcar Morais Pires, during his trial, mentioned Ricardo Salgado's inability to contact Álvaro Sobrinho, the former chairman of BESA, regarding the financial situation of the Angolan subsidiary, suggesting potential communication issues within the high-ranking officials of Banco Espírito Santo (BES).
- In the course of the trial, it was revealed that Morais Pires, with the material portfolio of BESA, waited for Salgado's discussion with Sobrinho before making any decisions, shedding light on the chain of command within the bank during that period.
- The trial involving Amílcar Morais Pires and other key figures, such as Ricardo Salgado and Álvaro Sobrinho, is centered around the alleged misappropriation of funds, risks posed to BES, and potential omissions of information related to BESA's financial status.
- Apart from the alleged financial misconduct, the trial also interrogates the subscription of Angolan public debt by BESA, as cited by Morais Pires, raising questions about the bank's commitment to Angola during speculative times of potential nationalization.
- The trial coverage extends to the financial, business, politics, general-news, and crime-and-justice sectors, as it delves into the intricate web of connections, alleged misappropriation of funds, and potential crimes committed by the accused individuals.
