Parmalat probe hots up

ROME – Italian officials questioned the detained former CE of Parmalat again yesterday, a day after authorities in New York searched the office of an attorney for the bankrupt Italian food and dairy giant.

The attorney, Gianpaolo Zini, is also under arrest in Milan in connection with the investigation into the collapse of Parmalat, whose balance sheets may be more than US$10 billion in the hole. Parmalat founder Calisto Tanzi is being detained for suspected fraud with five executives of the Italian firm and two of its auditors in one of Europe’s biggest corporate scandals.”We’ve heard that in New York they have some useful documents that they got from searching the office and residence of Zini,” an Italian judicial official involved in the case said at the weekend.Giovanni Bonici, head of Parmalat’s Venezuelan operations, who is still at large despite a warrant of arrest, said he was willing to return to Italy for questioning.”I have not run away.I am here to tie up the last business issues,” Bonici told Italian business newspaper Il Sole 24 Ore in an interview published yesterday.Bonici, also chairman of the Bonlat offshore unit at the core of the probe, said that he was not a fugitive like Saudi-born militant Osama bin Laden.Parmalat’s crisis exploded just over two weeks ago when its new management team revealed a US$4bn hole in its accounts, forcing the company to seek protection from creditors.Prosecutors believe Tanzi, helped by an inner circle of advisers, falsified accounts for years and embezzled more than US$800m, saddling the group with debts they say they estimate at US$10bn to US$13bn.They say Cayman Islands unit Bonlat, along with fund Epicurum, were used to justify false liquidity flows and camouflage debts.Investigators and the new management team are hunting for the missing cash, at least part of which is thought to be held in Parmalat units abroad.One magistrate has said that a trip by Tanzi to Ecuador before his arrest might have something to do with the disappearance of some of the money.Bonici denied any “treasure chest” sought by officials could be in Venezuela.”I know nothing about Ecuador.But as far as Venezuela is concerned I can say it is the last place in the world where you would hide money,” he said.”We are not exactly in Switzerland”.Prosecutors say Tanzi has admitted diverting up to US$620m from Parmalat to his family’s tourism businesses.Tanzi’s attorney, Fabio Belloni, said there were no company funds hidden overseas.”There aren’t any treasuries, or little treasuries,” Belloni said.But he also said that there could be “resources” that Tanzi did not know of because of the “extreme complexity” of the Italian company’s finances.Parmalat had about 200 subsidiaries and operations in 30 countries, while thousands of the company’s shareholders and bondholders stand to lose money as a result of the firm’s insolvency.Investigating Judge Guido Salvini and prosecutor Eugenio Fusco questioned Tanzi for four hours in Milan’s San Vittore prison on Saturday in an effort to trace where the money went.Tanzi “answered questions posed on the basis of the warrant” and fleshed out “his reconstruction of the facts”, Salvini said as he left the prison.- Nampa-AFPParmalat founder Calisto Tanzi is being detained for suspected fraud with five executives of the Italian firm and two of its auditors in one of Europe’s biggest corporate scandals. “We’ve heard that in New York they have some useful documents that they got from searching the office and residence of Zini,” an Italian judicial official involved in the case said at the weekend. Giovanni Bonici, head of Parmalat’s Venezuelan operations, who is still at large despite a warrant of arrest, said he was willing to return to Italy for questioning. “I have not run away. I am here to tie up the last business issues,” Bonici told Italian business newspaper Il Sole 24 Ore in an interview published yesterday. Bonici, also chairman of the Bonlat offshore unit at the core of the probe, said that he was not a fugitive like Saudi-born militant Osama bin Laden. Parmalat’s crisis exploded just over two weeks ago when its new management team revealed a US$4bn hole in its accounts, forcing the company to seek protection from creditors. Prosecutors believe Tanzi, helped by an inner circle of advisers, falsified accounts for years and embezzled more than US$800m, saddling the group with debts they say they estimate at US$10bn to US$13bn. They say Cayman Islands unit Bonlat, along with fund Epicurum, were used to justify false liquidity flows and camouflage debts. Investigators and the new management team are hunting for the missing cash, at least part of which is thought to be held in Parmalat units abroad. One magistrate has said that a trip by Tanzi to Ecuador before his arrest might have something to do with the disappearance of some of the money. Bonici denied any “treasure chest” sought by officials could be in Venezuela. “I know nothing about Ecuador. But as far as Venezuela is concerned I can say it is the last place in the world where you would hide money,” he said. “We are not exactly in Switzerland”. Prosecutors say Tanzi has admitted diverting up to US$620m from Parmalat to his family’s tourism businesses. Tanzi’s attorney, Fabio Belloni, said there were no company funds hidden overseas. “There aren’t any treasuries, or little treasuries,” Belloni said. But he also said that there could be “resources” that Tanzi did not know of because of the “extreme complexity” of the Italian company’s finances. Parmalat had about 200 subsidiaries and operations in 30 countries, while thousands of the company’s shareholders and bondholders stand to lose money as a result of the firm’s insolvency. Investigating Judge Guido Salvini and prosecutor Eugenio Fusco questioned Tanzi for four hours in Milan’s San Vittore prison on Saturday in an effort to trace where the money went. Tanzi “answered questions posed on the basis of the warrant” and fleshed out “his reconstruction of the facts”, Salvini said as he left the prison. – Nampa-AFP