The judge of the National High Court Alejandro Abascal has agreed to open an oral trial against the former president of Banco de Valencia José Luis Olivas, who was president of the Generalitat between 2002 and 2003, and the former CEO Domingo Parra for false accounting in the exercises 2009 and 2010, which led to the intervention of the entity.
In an order, the head of the central court of instruction number 1 includes Bancaja, majority shareholder of Banco de Valencia, as subsidiary civil liability; Bankia, entity in which Bancaja was integrated; its parent company BFA and the auditor Deloitte.
Banco de Valencia was intervened by the Bank of Spain at the end of November 2011, when a capital gap of some 600 million was detected, which was remedied with a contribution of 1,000 million from the FROB, before being awarded at auction to CaixaBank.
In its report, the Anti-Corruption Prosecutor's Office requests a sentence of three years and nine months for Olivas and Parra, understanding that despite the recommendations of the Bank of Spain, the expansive policy set by the bank's board of directors and implemented by Parra was maintained. based on the application of credit policies characterized by their "little prudence and high risk".
Faced with "real" bad results for the 2009 financial year, an accounting practice was chosen to maintain an image of solvency and profitability of the entity that did not correspond to the reality of its state.
Among other practices, the Prosecutor's Office detected that refinancing was authorized to real estate developers who otherwise could not meet the payment of their installments, practically all the risk of a series of long-term real estate projects in which there were significant doubts was assumed. on its profitability and assets were awarded in payment of debts, not proceeding to the adequate accounting of their value.
Likewise, despite the fact that many of its operations were poorly documented, no provisions were made for endowments in accordance with the regulations, and operations against the interests of the entity itself were authorized by its top managers, in collusion -sometimes- with managers and employees.
Some of them have already been the subject of other criminal proceedings for possible crimes of unfair administration.
All this resulted in the approval of some annual accounts, those for the years 2009 and 2010, which did not reflect the true image, since they were based on accounting adjustments aimed at "make up" such results.
José Luis Olivas - who was also Vice President of the Valencian Government and Councilor of the Valencia City Council - is among those acquitted for Bankia's IPO; As for Domingo Parra, last August he was acquitted in the case of the Costa Bellver real estate operation, in Oropesa del Mar (Castellón).
