Tuesday, February 10, 2004

Parmalat's Fall

business > family
Kavaljit Singh details the fall of mighty Parmalat:

"...Although the detailed investigations into the operations of Parmalat are still going on, the initial reports suggest that the collapse was triggered by murky financial dealings by its top management. The collapse was not an outcome of a typically cash-flow problem, as faced by many companies. Rather the top management deliberately used a variety of methods to misappropriate funds including use of complex financial instruments (particularly derivatives) and siphoning funds through its subsidiaries, Bonlat and Epicurum, located in Cayman Islands. The global structure of company came in handy for the top management to conceal certain losses..."

So I wonder, is this just Berlusconistan or does it demonstrate the deep roots of corruption in European businesses in general?

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