Welcome to FIS   Sponsored By
Subscribe to FIS | Register with FIS | Advertise with FIS | Newsletter | About FIS | Contact us
   


Manuel Fernández de Sousa leaving the courts

Pescanova's former executives tried for falsification of accounts

Click on the flag for more information about Spain SPAIN
Tuesday, December 03, 2019, 05:30 (GMT + 9)

The top managers of Pescanova between 2009 and 2013 are sitting in the dock almost seven years after the bankruptcy of the company. The process, which now reaches its climax, will analyze how its accounts were made up to keep an industrial "giant" beset by debt afloat.

The trial starts Monday in Madrid and is scheduled to last until March, four months during which the 19 defendants and numerous witnesses and experts will pass through the headquarters of the National Court in San Fernando de Henares.



At the head of all of them will be the former president of the Pescanova group, Manuel Fernández de Sousa, whom the prosecutor considers the leader of a network aimed at hiding the group's millionaire debt and thus deceiving investors, creditors and regulatory bodies.

Accused of eight crimes, the prosecution claims a total of 32 years in prison. Fernández de Sousa has seen how the case also splashes his wife and two sons, since in a separate case the National Court has decided to open an oral trial against them for money laundering and against the Public Treasury. Among the defendants is also former CEO Alfonso Paz Andrade,  the entire leadership of the Vigo-based company, as well as the auditor of the company, BDO.

Paz-Andrade, who directed Pescanova until 2007, told FIS at the time that he did not agree with the direction taken by Pescanova management, then directed by Fernández, mentioning in particular, multi-million dollar investments in farms in Portugal and Central America. This situation led him to resign from his position and distance himself from the company to focus on other projects.

On the other hand, he also clarified that since it was not, since 2007, CEO of Pescanova the decisions and control of the company was totally out of his responsibility. Finally, he said that, as of 2007, he relied on the accounts of the external auditor of Pescanova, BDO, who did not inform the shareholders of any irregularity in the company's accounts at that time.

According to the prosecutor's documint, to which EFE has had access, the “descent into hell” of Pescanova starts in 2007 with an ambitious investment plan aimed at expanding its aquaculture business, especially in Ecuador, Central America, the Southern Cone, Galicia and Portugal. With an estimated disbursement of EUR 833 million, the company initially financed this expense through loans granted by its parent companies to different companies that were part of the same group.

Pescanova Stock Price Feb-Mar-April 2013 | Source. Cinco Dias/El País

From 2010, coinciding with the outbreak of the crisis, the lack of resources forced the company to decide to resort more to bank financing, and then bet on “alternative financing mechanisms with short-term maturity”, in a vicious circle that kept on increasing its debt. To hide the sensitivity of their situation, according to the prosecutor's investigation, Pescanova executives commanded by their president executed "irregular business practices." The volume of its debt in 2010 and 2011 was between three and almost four times higher than stated, according to the documentation. The 2012 accounts, which were not approved, also pointed to an alleged benefit of EUR 36.6 million, far from the EUR 791 million of losses it carried.

The house of cards eventually collapsed in March 2013, when in a meeting of the Board of Directors two of its members revealed that Fernández de Sousa had summoned them days before to recognize the "delicate situation" of the company and urged them to contribute EUR 50 million.

The firm then initiated pre-bankruptcy proceedings and the CNMV decided to suspend the contribution shares, a situation in which it remained for more than four years. The restructuring of the company was closed in 2015 with its split into two parts: the productive part was under the control of the creditor bank, grouped in Nueva Pescanova, while the “Old” continues as a holding company in the hands of minorities.

The process will also sit in the dock the auditor during those years, BDO, since the prosecutor believes that its partner Santiago Sañé gave his approval to the accounts despite "being aware" that they "could not reflect the true economic and patrimonial situation" of the company.


Source: ABC

[email protected]
www.fis.com


 Print


Click to know how to advertise in FIS
MORE NEWS
India
Jul 17, 00:10 (GMT + 9):
ICAR-CIBA, Chennai trained aqua farmer wins national recognition
Russian Federation
Jul 16, 19:00 (GMT + 9):
The 54 fishing vessels to be built at Russian shipyards raise questions
United States
Jul 16, 17:00 (GMT + 9):
Dash Cart, the Amazon’s new smart shopping solution (video)
Viet Nam
Jul 16, 16:00 (GMT + 9):
Japan increased import of squid and octopus from Indonesia
Spain
Jul 16, 16:00 (GMT + 9):
Northern bonito campaign: Thirty ships unload 85,300 kilos of skipjack, the most of the season
Argentina
Jul 16, 15:00 (GMT + 9):
A hypothesis arises to the mystery of the trawler Echizen Maru
United Kingdom
Jul 16, 14:00 (GMT + 9):
Other Media | Packaging News: Cepac registers fish and shellfish pack with the IPO
Peru
Jul 16, 11:00 (GMT + 9):
Otros Medios | Industrias Pesqueras: Perú establece la captura de anchoveta para consumo humano en 150 000 toneladas
Australia
Jul 16, 10:00 (GMT + 9):
Other Media | FiskerForum: Queensland goverment's recovery grant for tuna industry
Viet Nam
Jul 16, 08:00 (GMT + 9):
Other Media | SeafoodSource: Vietnam increases pangasius exports to UK, Singapore as other markets decline
Spain
Jul 16, 02:00 (GMT + 9):
CONXEMAR Press Release: Statement on the Chinese suspension of shrimp imports from Ecuador
Spain
Jul 16, 02:00 (GMT + 9):
Press Release | CEPESCA: Operation Matraca
United States
Jul 16, 01:00 (GMT + 9):
Chicken of the Sea Introduces Wild Catch™, A New Premium Line With Just Three Simple Ingredients
Norway
Jul 16, 00:10 (GMT + 9):
Fresh mackerel above expectations
Spain
Jul 16, 00:10 (GMT + 9):
Other Media | Alimarket: Sushimore and Carrefour reach a collaboration agreement



Lenguaje
FEATURED EVENTS
  
TOP STORIES
Fishrot uncovers massive purchase of property from officials and relatives
Namibia The Namibian publishes two articles related to the purchase of properties by officials, and their families, related to the most important case of corruption in the fishing sector in recent years. FIS...
Commissioning of equipment started at the new Russian Pollock plant
Russia Fed. At the Russian Pollock factory, which the Russian Fishery Company (RRPK) is building on the territory of the Nadezhdinskaya TOP (Primorsky Territory), equipment commissioning has begun. Commissioning ...
WWF Press Release: Illegal fishing of sharks and rays caught on camera in the Mediterranean
European Union Multiple species of sharks and rays, some of them critically endangered, are being illegally caught on a regular basis in the Mediterranean Sea, evidence obtained by WWF reveals. These activities are ...
New auction system for Shetland Seafood Auction and W. Stevenson & Son (Newlyn fish auction)
United Kingdom Following the current market situation and the need for (further) digitisation of their fish auctions, Shetland Seafood Auctions (Lerwick) and W. Stevenson & Sons (Newlyn) are next to fully engage...
 
Maruha Nichiro Corporation
Nichirei Corporation - Headquarters
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation - Wartsila Group Headquarters
ITOCHU Corporation - Headquarters
BAADER - Nordischer Maschinenbau Rud. Baader GmbH+Co.KG (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Sea Harvest Corporation (PTY) Ltd. - Group Headquarters
I&J - Irvin & Johnson Holding Company (Pty) Ltd.
AquaChile S.A. - Group Headquarters
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods, Inc
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO - Food and Agriculture Organization - Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Brim ehf (formerly HB Grandi Ltd) - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Group Headquarters
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Mowi ASA (formerly Marine Harvest ASA) - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. - Headquarters
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
CJ Corporation  - Group Headquarters
Greenpeace International - The Netherlands | Headquarters
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
NOREBO Group (former Ocean Trawlers Group)
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation - Headquarters
Cooke Inc. - Group Headquarters
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart | Wal-Mart Stores, Inc. (Supermarket) - Headquarters
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
SeaChoice
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2020 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER