Eurostat has written a letter confirming that Valdis Dombrovskis’ deal to sell Parex Bank stock to the EBRD in 2009 was a fraud. The “sale” was actually a “loan” because Latvia must buy back the stock. The Eurostat letter indicates another fraud also: when Latvia gave free Citadele stock (the EBRD bought Parex stock, not Citadele stock) to the EBRD this should have been recorded as an expense. Latvia is required, according to the illegal deal, to buy back the Citadele stock for an unknown price at an unknown time. However, Latvia made the deal “confidential.” We thought “confidential” was for military secrets. How can the national debt be “confidential” from voters, taxpayers, and creditors? We hope the next government will repudiate the debt and sue the EBRD to take back the Citadele stock.
The European Commission has opened an investigation into state aid to Parex Bank and successors Reverta and Citadele Bank. It’s about time somebody investigated, since clear evidence of massive frauds has been openly available online for years.
The EC release listed specific ways in which Latvian government loans to Parex were noncompliant. They were larger than allowed, and also the government extended the maturities to longer times than allowed. Presumably, the government did this because the loans won’t be paid back however the government wants to delay until after the next election before taxpayers find out how much money was lost in the black hole of Parex.
Strangely, the EC release did not mention that the sale of Parex stock from Latvia to the EBRD was a fraud (a fake reversible purchase designed to fool the public) since that fraud is even worse than the others.
We at LawlessLatvia have already sent information to the EC investigators: Parex was a fraud and the Parex bailout was a fraud and the purpose of the bailout was to protect corrupt government employees and oligarchs.
Hopefully the EC will investigate with an objective of uncovering and exposing the truth. When the EBRD conducted “due diligence” on Parex in 2009, it had the opposite objective – tricking the public that Parex was not a fraud even though it was.
The EC release was not censored in the Latvian press. However, we wonder if the press knew about the noncompliance of the bailout loans already and covered this up for as long as they could.
Exiled Parex Bank whistleblower John Christmas wrote a letter to the European Central Bank about the 2009 EBRD fraud in Latvia and 2013 EBRD fraud in Lithuania. The letter was sent from Rome to approximately 650 people in December and January. You must click this link twice to get to the pdf:
UPDATE: PWC sent a reply that sums up the attitude of thousands of professionals who have known about the EBRD/Parex/Latvia fraud for years but are pretending they don’t know about it while it continues to grow. PWC is claiming that the letter sent to them was “mis-posted” even though it was clearly marked with a note that they signed the false 2009 Parex Bank annual report.
Perhaps this is no surprise given PWC’s horrible history in the former USSR. They signed annual reports for Gazprom for years will full knowledge that billions of dollars were being skimmed. And, they signed annual reports for Yukos for years with full knowledge of massive frauds there. PWC only canceled their endorsement of Yukos when Russian authorities threatened to arrest PWC employees.
Here is the PWC email about the ECB letter:
We have received a letter addressed to a Mr Draghi that seems to have been mis-posted. The subject is EBRD helping falsify financial statements. As this letter is of a sensitive nature we have destroyed it and taken no copies.
PwC PA to Kevin Burrowes & Symon Dawson