Parmalat's ex-finance chief faces more grilling

PARMA, Italy - Italian investigators in the ever-widening probe into the collapse of food group Parmalat resumed interrogation of the group's former finance chief Fausto Tonna yesterday, legal sources said.

Tonna, who was questioned for 12 hours on Monday, arrived early in

the day at the headquarters of the prosecutor in Parma where

Parmalat has its headquarters.

Tonna, who is being detained in Parma prison, was accompanied by

four policemen.

 

His lawyer Oreste Dominioni, said that Tonna had "replied to all

of the questions" put to him, but the lawyer did not provide

details.

 

Sources close to the investigation say Tonna has repeated that

he had acted on orders from Parmalat founder and former chairman

Calisto Tanzi, who is also in detention and being interrogated.

 

Investigators are trying to unravel complex operations in an

alleged fraud which is said to have lasted for nearly 10 years and

resulted in 10-13 billion euros (12,6-16,38 billion dollars)

missing from the accounts.

 

A total of eight people have been detained in connection with

the scandal surrounding Parmalat which is developing by the day,

with high-profile international banks being asked to provide

information and legal complaints being laid.

 

As special administrator Enrico Bondi works to sort out the mess

and reportedly organise short-term financing to keep the group

afloat, questions are being asked about regulatory arrangements in

Italy and Europe, the effectiveness of credit rating agencies, and

how any state-backed rescue for the company would satisfy EU

competition rules.

 

- AFP

 

Tonna, who is being detained in Parma prison, was accompanied by

four policemen.His lawyer Oreste Dominioni, said that Tonna had

"replied to all of the questions" put to him, but the lawyer did

not provide details.Sources close to the investigation say Tonna

has repeated that he had acted on orders from Parmalat founder and

former chairman Calisto Tanzi, who is also in detention and being

interrogated.Investigators are trying to unravel complex operations

in an alleged fraud which is said to have lasted for nearly 10

years and resulted in 10-13 billion euros (12,6-16,38 billion

dollars) missing from the accounts.A total of eight people have

been detained in connection with the scandal surrounding Parmalat

which is developing by the day, with high-profile international

banks being asked to provide information and legal complaints being

laid.As special administrator Enrico Bondi works to sort out the

mess and reportedly organise short-term financing to keep the group

afloat, questions are being asked about regulatory arrangements in

Italy and Europe, the effectiveness of credit rating agencies, and

how any state-backed rescue for the company would satisfy EU

competition rules. - AFP

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