AN AUDIT by KPMG of Portugese financial giant Espirito Santo International (ESI) has found it is in a “serious financial condition”.
In a US regulatory filing by its affiliate Banco Espirito Santo, details are revealed about the parlous financial condition of its parent. A review of ESI’s financial statements for 30 September 2013 and 31 December 2013 by KPMG found irregularities in its accounts.
The audit committee of Espirito Santo Financial Group (which owns a share of Banco Espirito and is itself part-owned by ESI) also identified irregularities in ESI’s accounts.
While Banco Espirito stated that it was not responsible for ESI’s problems, it accepted that it might face reputational damage as a result.
Debt from ESI had previously been sold to ESFG and subsequently onto Banco Espirito clients, a move that, while not illegal, had prompted the audit.
Banco Espirito CEO Ricardo Salgado had sat on ESI’s board until March.
What can you do to ensure your employees know the company policy and stick to it? Hear from other CFOs and experts in our free-to-view video
The quality of reporting by the UK’s top public companies has slowed despite greater economic uncertainty and increased investor demands for better disclosure, new research has found
Boards must step up their focus on corporate culture and work to foster longer-term goals if they want to win back public trust and ensure sustainable businesses, the UK accountancy regulator said
MPs have launched an inquiry on corporate governance, focusing on executive pay, directors’ duties, and the composition of boardrooms, including worker representation and gender balance in executive positions