The José Berardo Foundation went from a €102 million profit to a €245 million loss between 2007 and 2017 due to strong financial performance, according to an IGF report that prompted the government to liquidate the institution.
By order of the President of the Council of Ministers, published today in the second series of the Diário da República, the government has abolished the José Berardo Foundation (FJB), established in Funchal in 1988, which was an entrepreneur’s business management tool.
The “termination of the José Berardo Foundation” is announced following the report of the General Inspectorate of Finance (IGF) for 2019 under the Framework Law on Foundations and comes into force because “the activities carried out by the FJB demonstrate that the real end does not coincide with the purpose envisaged in the act of institution,” according to an order signed by Secretary of State for the Presidency of the Council of Ministers André Mos Caldas.
Released on February 15 last year, the IGF report focused on the activities and financial transactions conducted by the Joe Berardo Foundation between 2007 and the end of 2017, and concluded that during this period, the organization “continued financial activities aimed at achieving goals.” differs from the charter, namely financial transactions.
The analysis showed that FJB’s economic and financial position had worsened since 2007, resulting in a reduction in assets of 575 million euros and net income that rose from positive 102 million euros this year to negative 245 million euros in 2017. “the effect of developed financial activity”.
“The main activity carried out was the conduct of financial transactions with high market risk (i.e. acquisition of shares/interest), with large borrowings (980 million euros of debt at the end of 2017),” the report says, which indicates from that that this situation worsened FJB’s debt ratio to 207%.
At the same time, the amount allocated for statutory purposes is equivalent to only 0.1% of assets in 2017, that is, 599 thousand euros.
According to IGF, at the end of December 2017, the Fund’s net assets were €481.8 million, representing a decrease of €255.8 million compared to 2016 and €757.3 million compared to 2011. reduction in the cost of financial investments.
Following this review, the IGF also identified expenditures “not related to the fund’s/IPSS social objectives”. [Instituição Particular de Solidariedade Social] and / or in favor of the founder’s relatives (250 thousand euros), without violating the charter and the law.”
However, the report notes that “it was only at the end of 2019 (at the time of this review) that the Institute for Social Security of Madeira (ISSM) proceeded to de-register as IPSS for ‘…three years of activity necessary for the implementation of social security’.” purposes” (Declaration No. 22/2019).
In addition to the financial and economic aspect, the IGF found other inconsistencies, namely the fact that the FJB did not adapt the regulatory rules to the IPSS Statute in the Autonomous Region of Madeira (RAM) within the statutory deadline (until December 2017), “only in 2019. » by submitting a proposal, “albeit with flaws”.
In addition, “she did not comply with the Framework Law on Foundations (LQF) when she signed in 2015 a contract for payment on account of the sale of the property of the Monte Palace Hotel to pay off a debt of 90 million euros to the Collections Association, without the prior permission of the competent authority for recognition.
The José Berardo Foundation was the business management tool of the entrepreneur, through which he took on debt, namely to acquire shares in Millennium BCP, which is the basis of the process initiated by BCP, CGD and Novo Banco, for debts exceeding 900 million euros.
In accordance with the decree of the President of the Council of Ministers determining the liquidation of the FJB, “the administrative body of the José Berardo Foundation is limited to the practice of actions that simply preserve the main heritage, and it is prohibited from taking actions related to the alienation or encumbrance of any assets, social or financial participation, as well as the adoption new responsibilities.”
The Foundation’s statutes provided for “charitable, educational, artistic and scientific” purposes, which led to its recognition by the Regional Secretary for Social Affairs of Madeira as a “private social solidarity institution” in 1991, later registered with the Social Security. Institute da Madeira, which was canceled by order of November 26, 2019.
The opening of the administrative procedure for the dissolution of the José Berardo Foundation took place on January 5 this year, after the conclusion of the Advisory Council of the Foundations and the State Center for Legal Competence.
Liquidation is established on the basis of Article 192 of the Civil Code and 35 of the Framework Law on Foundations, which imposes it when “the activity carried out indicates that the real purpose does not coincide with the purpose provided for in the deed of establishment” .
The termination process now obliges the Foundation to provide the General Secretariat of the Presidium of the Council of Ministers (SGPCM) within 10 working days with its accounts, debts and liabilities, a list of existing assets and contracts, and identification of its employees and assumed responsibilities.
The fund’s administrators are also liable “personally and jointly and severally for the acts they commit and for damages caused by them in violation of the previous rules,” the diploma states.
José Berardo was arrested on June 29, 2021 and charged with eight offenses of qualified fraud, money laundering, qualified tax fraud, two offenses of qualified breach of trust and one offense of embezzlement, according to a process opened by the bank.
As a result, he was placed on bail in the amount of five million euros and forbidden to leave the country without a court order.
As part of this process, works from the businessman’s art collection were also confiscated in July 2019, which formed the basis of a protocol concluded with the state in 2006, which led to the creation of the Foundation for Modern and Contemporary Art — Berardo Collection and the opening of the Museum of the Berardo Collection at the Belém Cultural Center (CCB) in Lisbon next year.
This agreement, extended in 2016 with an addition, was denounced by the Minister of Culture, Pedro Adao i Silva, half a year before the deadline, in December of this year.
According to Pedro Adão y Silva, from January 2023, the CCB space, where the art collection is located, will no longer be called the Museum of the Berardo Collection, but will receive a new name.
Author: Lusa
Source: CM Jornal
