Storm on the former provincial councilors. Corte dei Conti also on Pisapia
Visit by the Guardia di Finanza this morning to many councilors of the former Province of Milan (now a metropolitan city) from the time of Ombretta Colli’s presidency. According to the first information gathered by Affaritaliani.it Milano the Regional Prosecutor of the Court of Auditors allegedly initiated a “dispute of responsibility and an invitation to provide deductions” for an old question concerning derivatives, and among the people mentioned in the documents are the names of the councilors and the council. Names of the opposition are also apparently cited. At number 63, the reason is not yet clear, there was also cited thereformer mayor Giuliano Pisapia, perhaps because he was a metropolitan mayor after the abolition of the provinces and the establishment of the metropolitan city of Milan.
According to information gathered by Affari, Pisapia would be cited because his conduct “must be considered grossly negligent, due to the negligence manifested in the performance of his duties as, disregarding both the opinion provided by the Attorney and the lawyers in charge, he decided to ignore the claim notified to him by both Merryl Linch and Dexia and not to appear in the proceedings then actually brought by the latter before the English court, causing the entity serious damage both in terms of court costs and foreclosure for the subsequent action for annulment of the ‘ order “. The fact that is the subject of the disputes was allegedly committed in 2002, therefore 19 years ago.
fabio.massa@affaritaliani.it
FOLLOWING THE PRESS RELEASE OF THE REGIONAL PROSECUTOR OF THE COURT OF AUDITORS
The Regional Prosecutor of the Court of Auditors for Lombardy has notified an invitation to deduct 2 financial intermediaries and 64 former directors and executives of the Metropolitan City of Milan regarding the conclusion and management of some derivative contracts (“swaps”) that are manifestly inexpensive for lens.
The results of the preliminary investigation, coordinated with the collaboration of the Economic and Financial Police Unit of the Guardia di Finanza of Milan and supported by the results of a partisan consultancy requested by the Public Prosecutor of the officials of the Support Unit to the Judicial Authority of the Bank of Italy , made it possible to identify the prerequisites for the preliminary contestation of administrative – accounting compensation for the damage suffered by the Metropolitan City of Milan (formerly the Province of Milan) vis-à-vis the recipients of the deed.
The Public Prosecutor recognized the conduct of credit institutions as an intentional concealment of the real financial conditions underlying derivative transactions, facilitated by inexcusable and concomitant conduct, including omissions, marked by serious inexperience, imprudence and negligence of the decision-making bodies and bureaucratic top management of the the entity, for having stipulated and maintained derivative contracts in force in the absence of adequate assessments regarding the risk and the effective economic convenience of the transactions. Having regard to the assumed responsibilities of public administrators, they are not linked to signatures recklessly affixed, but to concrete and repeated conduct characterized by serious superficiality and inexcusable lightness.
The tax damage, at the state of the proceedings, amounts to over 70 million euros, equal to the value of the commissions and implicit costs hidden by the banks and of the negative differential flows paid in fulfillment of the swap contracts, in addition to the sums that the Metropolitan City of Milan had to pay in execution of the sentence of the High Court of Justice of London due to the default and the loss of the relative judgment initiated by one of the intermediate banks.
The invitation to cross-examination, specifically provided for by the accounting justice code to ensure the implementation of the guarantees of due process and the effective exercise of the right of defense, will allow the Prosecutor to carefully weigh the causal contribution of the various operators involved in the causation of the damage, to possibly exclude certain responsibilities based on the deductions produced, as well as to ascertain the correctness of the subjective allocation of the amounts under investigation.