The Bank of Portugal has blocked the sale of the International Bank of Cape Verde (BICV) to businessman José Veiga.
The businessman had requested authorisation from the Bank of Portugal to acquire all the shares of the International Bank of Cape Verde (BICV), former known as the Banco Espírito Santo de Cabo Verde, SA (BESCV) held by Novo Banco on 18 January.
The Bank of Portugal in its role as regulator of all things financial has blocked the sale to José Veiga and a group of Portuguese-African investors, due to the "existence of investigations relating to the operation," adding that it wants "to protect the reputation" of the Novo Banco.
Why all the fuss? José Viega who was been arrested and later released on bail on suspicion of, among a list as long as your proverbial, crimes of corruption and influence peddling.
The welcome note from the Bank of Portugal read, "The Bank of Portugal has decided to oppose the conclusion of the sale, based on its knowledge of the existence of judicial investigations in progress and in view of the need for reputational protection for Novo Banco."
The deal would have led to some welcome cash for Novo Banco, €14 million, but the Bank of Portugal reckons this is letting the deal go through is not worth the risk.
The decision was expected. Although the promissory contract already has been signed, the deal also would have needed the authorisation of the Cape Verdean central bank.
A statement issued by Novo Banco, led by Stock da Cunha, argues that the sale process was conducted "in an orderly, transparent manner" and that despite the decision of the Bank of Portugal to block the sale, Novo Banco remains committed to selling the International Bank of Cape Verde as part of its restructuring efforts.
José Viera, a former football manager was arrested and charged as part of operation ‘Rota do Atlântico’ for participating in crimes of corruption in international trade, money laundering, influence peddling and tax fraud.
