Arab Today, arab today accounting scandal hooks spanish frozen fish giant
Last Updated : GMT 03:57:34
Arab Today, arab today
Arab Today, arab today

Accounting scandal hooks Spanish frozen fish giant

Arab Today, arab today

Arab Today, arab today Accounting scandal hooks Spanish frozen fish giant

Madrid - AFP

It boasts a fleet of 100 ships and 10,000 employees worldwide but suspected fraud at frozen seafood giant Pescanova is causing an embarrassing stink in export-hungry Spain. After years of posting growing sales, amounting to 1.7 billion euros ($2.2 billion) in 2011, the group that was among the world industry\'s leaders and the pride of the northern region of Galicia has plunged into scandal. One evening in February, Pescanova was forced to reveal that it could not publish its 2012 accounts. Two months later, on April 25, it filed for bankruptcy. \"That was a surprise,\" said Francisco Vilar, regional secretary of the food-processing federation of the main union at Pescanova, the Workers\' Commissions (CCOO). \"People who work here have been here for 30, 40 years, with good management. So it was an enormous surprise.\" Pescanova is accused of false billing, hiding a debt of 3.3 billion euros that was more than double the declared figure, and its top managers of selling shares just before the scandal broke. \"It\'s Enron, Spanish style,\" said one banking source, referring to the giant US energy group that collapsed in the 2000s in one of the biggest financial scandals in US corporate history. \"There was a tangle of subsidiaries set up solely and uniquely to hide the debt,\" the source said. The group had more than 100 offshoots, in many of which the group held less than 50 percent of the equity to as to avoid including their debts in its accounts. To pay for an all-out investment programme, from salmon farms in Chile to prawn preparation centres in Ecuador, the group \"would go to different banks in the world to ask for credit, using the image and reputation of Pescanova, and everyone gave it to them, which was logical because they were industry leaders,\" said one source close to the company. Banco Sabadell, Banco Popular, Deutsche Bank, Commerzbank, but also banks in Namibia, Bolivia, or the island of Mauritius: more than 100 banks loaned money to the frozen fish giant, which boasts of inventing refrigerated shipping in the 1960s. Now the Pescanova president, Manuel Fernandez de Sousa, is being investigated for suspected false accounting and insider trading. Auditors Deloitte and KPMG have been tasked to look into its accounts. A KPMG report made public Wednesday was damning. \"In the last financial periods, practices were designed and set up whose object was to present a group financial debt smaller than the reality and, as a consequence, results that were larger than those actually generated,\" KPMG said according to a statement to the stock market regulator. \"It is a tough lesson, we should have suspected something,\" said the banking source, adding that it was difficult to see the problems in a company whose results are audited annually. \"We are speaking about a listed company, not a family business that has fewer legal obligations!\" the source added. Manuel Fernandez de Sousa, who denies any embezzlement and admits only to making mistakes, admitted in a statement that Pescanova \"was created and expanded almost without capital thanks to banking credits, like the great majority of Spanish companies\". \"That has always been our weak point and it still is.\" At the end of June, the group secured an emergency loan of 56 million euros. No foreign bank wanted to take part. \"That\'s not a good sign,\" worried the banking source, while Spain, whose banks are being recapitalised with European financing, is struggling to regain market confidence. The scandal \"does great damage to a country\'s credibility,\" said Joaquin Yvancos, lawyer for more than 100 small shareholders suing the management including a US fund and investors from Costa Rica. \"We are not talking just about Pescanova but the Spain brand,\" he said, adding that it came at the \"worst time\" when the country was trying to persuade investors to return. \"Pescanova is a multinational with a well-known brand and when this kind of thing happens it is never good,\" the Spanish stock market regulator\'s president Elvira Rodriguez said recently. \"It is one of the world\'s main fishing groups,\" said Alberto Roldan, analyst at Lloyds Bank. \"This very unfortunate affair tarnishes businesses\' efforts to be more international,\" he added. \"It is hard to properly measure the enormous damage caused by Pescanova to Spanish industry.\"  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today accounting scandal hooks spanish frozen fish giant Arab Today, arab today accounting scandal hooks spanish frozen fish giant

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today accounting scandal hooks spanish frozen fish giant Arab Today, arab today accounting scandal hooks spanish frozen fish giant

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday