Portuguese police have searched the offices of Novo Banco, Portugal’s fourth-largest bank, and the local branch of auditing firm KPMG as part of a corruption investigation. The probe centres on suspected crimes related to the sale of the bank’s assets. Prosecutors are investigating potential active and passive corruption in the private sector, aggravated fraud, and money laundering related to Novo Banco’s asset disposals since 2018. Novo Banco, now owned by France’s BPCE after being purchased earlier this year, was created from the remnants of Banco Espirito Santo (BES) in 2014 following a state bailout. The bank has since been focused on reducing risk by closing international subsidiaries and selling off non-performing loans and property assets under strict restructuring guidelines.
The prosecutor’s office stated that the searches involved around 100 inspectors and IT specialists. These personnel were tasked with locating and seizing evidence at the bank, private homes, a law firm, an auditing company, and 16 other businesses. Lone Star, a US private equity firm, originally acquired Novo Banco in 2017 before selling it to BPCE in June for roughly 6.4 billion euros ($A10.6 billion). Novo Banco did not immediately comment; BPCE also declined to comment.
KPMG confirmed that its offices were searched but clarified that it is not the target of the investigation. The firm stated it is cooperating with authorities, who are seeking information about one of its clients. The collapse of BES, burdened by bad debts and toxic assets, has triggered multiple investigations in Portugal, with previous police searches at both Novo Banco and KPMG offices.
Prosecutors have declined to provide any further details, citing judicial secrecy. For reference, Novo Banco is a Portuguese bank that was formed in 2014 to take over the assets of the failed Banco Espírito Santo. KPMG is a global audit, tax and advisory firm.