San Marino. The reading of the Commission report on banks was concluded at the Council on 7 December
“The reading of the final report of the Council Commission of Inquiry on alleged political or administrative responsibilities involving the Credito Industriale Sammarinese – Banca CIS and on banking crises and possible resolutions ends only in the late afternoon of today.
The reading of the text began yesterday; 375 pages are available at the following link:
https://www.consigliograndeegenerale.sm/on-line/home/consilium-work/details-of-convocations/scheda17174742.html
In the morning session and for a large part of the afternoon, the councilors who are members of the commission took turns reading the chapter focusing on Savings Bank. As many as 159 pages are dedicated to this institute, where its events are traced in detail, starting with crisis related to Delta and subsequent evaluations, but not only. There are chapters on the losses suffered for specific episodes: the crash of the Caltagirone group, the Barclays shares, the write-downs related to the Kovanica bank. The commission also examines the content of the “Quill Report”, the result of the technical advice requested from the IMF in 2016 by the government, focused precisely on the situation of Carisp and the actions to be taken. Then the crisis of 2017 is tackled when the 2016 budget of the institute was approved with a loss of over 500 million euros and the enormous political confrontation that followed. The whole affair is described in detail, including the unpleasant episode that at the Rimini Meeting in August 2017 saw the former director of the central bank, Lorenzo Savorelli, as the protagonist, and which led to his estrangement. And again, the resignation en bloc of the then Board of Savings Bank is retraced.
In particular, in the paragraph “Hands on the cashier”, The final report of the previous phase of the work of the Commission is resumed in which it speaks of role played by Francesco Confuorti in Banca Cis and also of its “infiltrations into the Cassa di Risparmio”. The paragraph on “Political responsibilities“In which the commission admits that” the search for direct relations between politicians and Francesco Confuorti did not give significant results “and” not even in the criminal investigation that most involved these facts, that is, both the criminal proceedings 500/17 “. Even if for the Commission “it is clear that Confuorti also received information flows from political circles”. The links between the Confuorti group and “Grandoni group“, With respect to which the former Secretary of State for Finance, Simone Celli, is expressly called into question for several of his actions that” went in favor of the ‘clique’ “, underline the commissioners, although” not given in the proceedings of the Commission – it is specified – that the former Secretary Celli has drawn economic benefit from the facts represented “. Between the Cinclusion of the commissioners of this part of the chapter on Cassa: “The role of what, in the file, is a real organization coordinated by Francesco Confuorti, appears to be proved in a refutable way – it is emphasized – denounces the report – composed of Cassa and Bcsm, with the collaboration of the Grandoni Group aimed at distributing unjust benefits to its members, identifying highly paid consultants in relation to the same organization and carrying out the restructuring plan of the banking system for the benefit of the Grandoni group “.
The report therefore also addresses the issue of Liability actions put in place for the Carisp affairs: “Cassa di Risparmio in the last 12 years has suffered losses of approximately 1.5 billion, with a financial intervention of the State exceeding 800 million, but no director or manager has ever actually been called to respond of none of the actions, some objectively reckless, which have caused damage to the institute and which have given back to the entire country “.
We still talk about Carisp in the paragraphs dedicated to Leiton case, on the 13.5 million euro loan not repaid by the Luxembourg holding company linked to Banca Cis, and on the one on the sale of the Npl package “Arcade“. And finally in the last paragraphs on the costs of consultancy and on governance fees.
After the chapter on Cassa di Risparmio di San Marino, the report addresses the delicate issue of “Debt of politicians”, In which it is explained that the positions of a total of 182 politically exposed persons have been examined, from 2008 to today, ie in the last 4 legislatures. No names and surnames are mentioned, but it is reported that as of 30 August 2021 there are 18 directors and former directors “with suffering exposures”. The total of debt positions amounts to 30,291,113 euros: of this figure, five “Pep” have non-performing exposures exceeding 1 million euros, two for figures between 500,000 and 1 million euros, as many two Peps for an amount between 100 and 500 thousand euros, finally for 9 the debt positions are less than 100 thousand euros. It is then noted that “66.2% of total bad debts are attributable to a single former Director” and that the figure is attributable to his entrepreneurial activity, “wrecked misfortune”.
The last chapter of the Report, entitled “The bill is served”Sums up what it ultimately cost the State to intervene in support of the country’s banking system, through direct and indirect measures. “In summary, we note that the direct intervention of the State with money or government bonds amounts to € 869.1 million”, states the text of the report. Furthermore, “to these we must add the indirect aid or the tax credits used equal to Euro 52.2 million, the tax credits not yet used and the indirect credits of Euro 335.44 million. And then we have the not yet definitive figure of how much the resolution intervention in the Bns could cost us, whose State guarantee to date amounts to about 320 million euros (215 million bonds and 105 pension funds). The final balance reaches the remarkable figure of 1,576,740,000 euros. With particular reference to Cassa, it is acknowledged that, in addition to the State intervention of 858 million euros, the assets, set aside in about 120 years, of 640 million have been squandered ”.
The debate on the contents of the report will only open on Monday 13 December, given that the council regulation provides that the minutes will be taken three days after the presentation. It has also been foreseen its possible continuation in the following council session, which will open on Tuesday 14 December “.