At last some clarity from the government over the Caixa Geral de Depósitos directors dispute.
Carlos César, the President of the Socialist Party, said today that the directors, led by António Domingues (pictured below), would have to be replaced if they did not meet the deadline for the delivery of their income and asset statements to the Constitutional Court.
Asked by journalists about the delay in resolving the issue of the Caixa Geral directors, who so far have refused to hand in their records as required by law for those running State owned companies, and whether the government had signed any written agreements letting them off, César said the issue is simple – if the directors fail to do what legally is required, they must go.
"The Constitutional Court has already notified Caixa Geral’s directors that they must hand over their declarations of assets and income. So the question is very simple. If, within the appropriate period of time, Caixa's directors do this, everything is fine. If they do not, they should not continue as Caixa Geral de Depósitos directors," said Carlos César.
"The prime minister already has said that there was no agreement regarding income statements, the Minister of Finance Mário Centeno said the same, the President of the Republic has already said that it is his understanding that the directors' statements should be delivered and the Constitutional Court has already notified the Caixa Geral directors that this is what is expected of them," said the Socialist Party president.
Pushed on whether there is a written agreement in which the Government exempted the directors from presenting their income and asset declarations, Carlos César considered that he had already answered the question.
Former PSD leader, and current political commentator, Luís Marques Mendes said on his Sunday SIC programme that, "Caixa's directors already have decided that they will comply with the law," and submit their statements.
Mendes guarantees that Caixa's managers will deliver their income statements but will try to ensure these remain confidential and not for public analysis.
"António Domingues will remain, even if the declarations are made public," said Marques Mendes
According to the commentator, António Domingues’ team made the decision to stay and has written to the Ministry of Finance.
Marques Mendes said Caixa's new administrators will still ask the Constitutional Court to ensure the confidentiality of income and assets declarations, a hypothesis that, under the law, is not completely ruled out.
If the Constitutional Court "does not authorise this request," admitted the commentator, "the majority of the new directors will stay," adding that maybe three or four directors may go.
The Social Democrat criticised the government for supposedly having entered into an agreement with the new directors that would exempt them from presenting their income statements. Mendes claims the government "hid the agreement" because it knew it had been a "colossal mistake" and would trigger a political storm.
Whether the directors submit their statements or not, whether the financial details are open to public scrutiny or not, and whether the government did agree a deal and then reneged, one thing is for certain: these directors under António Domingues are not fit to control a State owned bank: the question remains, what do they have to hide?
The board has been behaving exactly like the over-privileged, over paid managers that drove the bank into insolvency in the first place.
This is precisely the opposite of what the public expects and deserves after decades of corruption and self-enrichment at Caixa. This discredited board of directors should be dismissed by the PM and a new one found at the original salary levels.
