Italian Authorities Seek Indictments Over Parmalat Collapse

by Ulrika Lomas, for LawAndTax-News.com, Brussels

23 March 2004

Italian prosecutors are seeking the indictment of 29 people and three institutions in connection with the collapse of Italian dairy giant Parmalat, it emerged last Thursday.

According to reports, the three institutions in question are Bank of America, Deloitte & Touche, and former Grant Thornton operation, Italaudit.

Included in the list of 29 people now facing criminal charges (with more to come, according to the Italian authorities), are Parmalat founder Calisto Tanzi, and chief financial officers, Fausto Tonna, Luciano Del Soldato, and Alberto Ferraris. The men stand accused of market manipulation, obstructing the investigation into the company's collapse, and falsifying audits.

Prosecutors in the organisation's home town of Parma are said to be conducting a separate investigation into false accounting practices alleged to have taken place at Parmalat, but are not expected to bring charges for some months yet.

Responding to Thursday's announcement, Bank of America told the New York Times that:

"We do not believe that the proposed charges against our company are supported by the facts, and we will defend ourselves vigorously."

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