BCP Privatisation

The BCP farce has also emphasised a sinister side to Portuguese politics. With the Government putting forward a Board of Directors for the bank, it is easy to conclude that such a move represents the privatisation of the second largest Portuguese bank, second only to the State's "official" bank, the CGD. But that, in itself, is not the sinister part.

The sinister part is the argument among major political parties as to who, from each party, should be appointed to the Board of BCP. Does either party have members qualified to fill such a post - apparently not! Never mind. It is in "the national interest" to ensure that all political parties are duly represented. What a load of bull****! The national interest lies in ensuring that the Board is competent.

As the State is not a BCP shareholder, what has the government got to do with the matter? Apparently the politicians do not understand the difference between Government (the elected representatives at one particular time) and State (the structure set up to run the country, irrespective of who is in government) - the majority are only in politics to make a quick buck anyway.

Fortunately an alternative list of candidates has emerged. It will be a shame for Santos Ferreira to have resigned from the CGD and end up without a job, but that's politics!

BCP Directors unfit?

Once again the genius who runs the Bank of Portugal (BoP) leaves us amazed. After many, many years of supervising BCP, he reaches the conclusion that no former Board Directors (Administradores) of BCP may run for office in the new administration! However, no details are released of formal action being taken against any of them, for breach of statutory duty, negligence, fraud, tax evasion....

Hang on a minute. If the BoP has such sweeping powers to disqualify directors, what took it so long? If not, as appears obvious, where is due process?

Once again, he had descended from his ivory tower, issued inane statements and retreated, leaving everyone to wonder what is really going on. How did the BoP inspection teams fail to analyse the loan write-offs to related parties? What does the BoP really do, other than pay fat salaries to its staff? I said he should go two years ago. How much longer must we wait?

0-0, End of First Part

When the BCP General Meeting was announced some weeks back, I voted in the Jornal de Negócios on-line poll, suggesting that nobody's cause would win at the meeting. It wasn't a very popular choice. So I'd just like to say "Ha ha" to all the hawks and doves out there.

Admittedly, there will eventually be a winner. And with Paulo Teixeira Pinto in retreat even before the meeting started, it's not difficult to guess who will win. But yesterday only brought one casualty - the poor misguided IT manager whose system couldn't cope with registering all those shareholders.

And so the saga continues, leaving the second largest bank in Portugal paralysed when it comes to dealing with its larger customers. Fortunately the Board are not worried about profitability for now, with the record results announced for the first half. But it's not much fun being on the outside, waiting for the storm to blow over.