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.
The UK’s decision to leave the EU has raised questions about whether the FRC's regulatory framework should change in the future
Company boards must pay more attention to instilling the right corporate culture in order to restore trust in business and deliver long-term sustainable growth, according to the FRC
Following international accounting standards for leasing one battle too many for the MOD
Jane Ellison to serve as 'tax minister' following ministerial responsibilities for public health. David Gauke become chief secretary to the Treasury