A bankruptcy court on Saturday declared Parmalat’s main operating arm insolvent amid a growing sense of panic at the Italian food multinational, where investigators are probing an alleged accounting scandal.
Up to £7-billion is thought to have disappeared from Parmalat’s accounts following a worldwide series of false billings and statements, according to Italian officials.
A court in the northern Italian city of Parma, near Parmalat’s headquarters, took the insolvency decision after the group’s administrator — appointed when the company applied for bankruptcy protection last week — outlined the firm’s financial situation.
The court set a 120-day deadline for the judge to review the company’s outstanding debts. In the meantime, Parmalat’s operations will continue to trade.
A new twist to the saga emerged on Saturday when it was revealed that Parma’s chief public prosecutor, who is overseeing the investigation into the stricken company, has been under investigation for a suspected corrupt exchange of favours with a Parmalat director.
Prosecutors in Florence requested on November 7 that Giovanni Panebianco be sent for trial for corruption in judicial acts and the creation of false official documents, Italian newspapers reported.
The allegations against Panebianco, which are likely to force him to withdraw from the Parmalat investigation, were first made to Florence prosecutors by a former head of the loans department of the Cassa di Risparmio di Parma e Piacenza.
The official said the chairperson of the savings bank, Luciano Silingardi, who was a member of the Parmalat board until two weeks ago, had bowed to pressure from Panebianco to authorise loans worth £2,4-million to a friend.
A report by a Banca d’Italia inspector concluded that the loans were out of all proportion to the guarantees being offered and were the result of a ”recommendation” from Parma’s chief prosecutor. In his turn, Panebianco had received a payment of £26 000 from a representative of one of the companies that he had recommended for a loan, the report, quoted on Saturday by Corriere della Sera, said.
Florence prosecutors also allege that Panebianco authorised a bankruptcy settlement that enabled another of his friend’s companies to purchase a tract of agricultural land at a fraction of its real value. Other charges against Panebianco and Silingardi for misappropriation of bank funds, abuse of office and revelation of professional secrets have reportedly been dropped because of a statute of limitations.
Calisto Tanzi, the former chairperson and founder of Parmalat, is expected to return to Italy from Spain next week to answer prosecutors’ questions about the multibillion-pound hole that has opened up in his company’s accounts.
Parmalat officials have also reportedly accused the company’s auditors, Grant Thornton Italy, of helping them conceal the staggering losses. Grant Thornton denies any wrongdoing, and say it is also a victim of misleading Parmalat information.
Before its collapse, Parmalat had a stock market value of £1,3-billion and a workforce of 35 000. — Guardian Unlimited Â