EiDF Solar has affirmed that it will not proceed to publish the entire executive summary of the forensic report carried out by Deloitte, as required by the National Securities Market Commission (CNMV), since it considers that it is an “imposition”. that it goes against the freedom of the company in the preparation of its communications and it is information whose conclusions are under study for the taking of possible legal actions against its author.
In information sent to BME Growth, the company thus responds to the request made by the stock market supervisor on August 21 and whose response period expired this Thursday at 8:00 in the morning. In its response, the Galician company thus communicated that “the exhaustive formulas imposed in the request filed by the CNMV will not be published, and this body must act in the manner it deems appropriate, without counting, for this purpose, with authorization from this party.
EIDF Considers That, Despite “The Ample Powers” That The Law Grants To The Cnmv As Supervisor Of The Operation Of The Markets, Nor Should It Be “Admitted To Discussion In We And The Development Of Those Powers Is Not Knowing ITS Necessary Fit Within A Given of Law, which prevents their consideration as absolute and victorious, in any case, in a possible conflict with other rights in contention”.
In this regard, the company acknowledges its obligation to disclose to the market “contingencies, information or relevant facts, affecting the company, which may affect investment decisions”; now, in the preparation of these communications, he stressed that “he is free”; Therefore, it considers that “the requirement of a ‘draft’ of what is claimed to be published, for its review by the CNMV before executing the disclosure itself, implies a kind of prior censorship -said with all due respect- and administrative intervention of this unique facet of freedom and business autonomy”. For this reason, it affirms that it does not agree with the legality of the requirement of a ‘draft of publication’ and, “much less, does it protect in it the breach of a requirement”.
No data relevant to the market was hidden
In addition, EiDF defends that in the summary that it released of the report, relevant data to the market is not hidden, “absolutely realizing all the basic conclusions reached in it.”
“A different thing is that, suddenly, the CNMV changes its mind and, instead of a forensic summary, is interested -once the accounts for the 2022 financial year have been audited and published, the only reason on which the suspension of the listing was based of the EiDF titles, decreed in the already distant 04/14/2023- a literal reproduction of passages that the supervisor has previously selected -at his discretion- or of the entire executive summary of the coroner in question, which is a ‘ imposition’ of what has to be published, without any margin of freedom for the company,” the firm says.
Possible liability claim for the report
Likewise, it warns that the legal conclusions reached in Deloitte’s forensic report, a report whose commission and scope were required by the EiDF audit company, PricewaterhouseCoopers (PwC), adds, “have sometimes already been subject to opinion of an office of recognized prestige, in order to determine if the inclusion of such conclusions in the reiterated report may give rise to the demand of responsibility to its authors”. In this way, it emphasizes that the use of this legal report will be exclusively internal, “as a prerequisite for, where appropriate, the exercise of the right to effective judicial protection, in its manifestation of the right to action before the courts of justice”
THIS THURSDAY, The Organization Presided By Rodrigo Buenaventura Has Hablico A Requirement Sent On August 21 Aidsa Which Informed The Company That It Considered That Complete Information Had Not Been Given To The Market, Omitting The Executive Summary Of The Forensic Report Prepared By Deloitte, And That “very relevant omissions” had been carried out. The stock market supervisor thus estimated that the information submitted by the company was incomplete and could “induce confusion in the public” and warned the company led by Fernando Romero that Deloitte’s forensic report included a report of facts and evidence “of great importance “. “for EiDF shareholders.
Of them, he highlighted the evidence of “possible falsification of documents by the company, given their special relevance.” In this regard, it added that PwC, the auditor of the group’s accounts, had taken this forensic into account in its work “which has materialized, among other aspects, in a limitation to the scope of its audit opinion, given the weaknesses of internal control identified in the coroner in these matters”.
Last week, EiDF presented its restated accounts corresponding to the year 2022. The group, due to discrepancies with its auditor, later, Deloitte services to carry out “an investigation aimed at analyzing and gathering evidence related to incidents and/or discrepancies” maintained with PwC in the process of auditing its accounts last year.
Lift your suspension with effect from Monday, August 28
Likewise, with the publication of this information requirement, the CNMV has agreed to lift, effective Monday, August 28, the precautionary suspension, which had weighed on the company since April 14, from its trading on the BME Growth. “As a consequence of having privileged information made available to the public regarding the circumstances that advised the adoption of the suspension agreement.”
“Such information includes the communications of privileged information made from the date of the suspension by the issuing company itself and the additional requirement of the CNMV, not attended by the company, published by BME Growth dated today,” it added.
“Numerous incidents related, among other issues, to invoices and payments”
Modification and falsification of documents
Specifically, the information required by the CNMV dealt with facts such as the fact that the report mentioned that “in some of the activities and operations with third parties analyzed, situations have been identified in which documents have been created, modified or falsified”.
Likewise, it was indicated that all the debtors included in the scope of the coroner presented “a direct and indirect link with Fernando Romero, the group’s largest shareholder, and that, according to the report, “numerous incidents related, among other issues, to invoices and payments for services that may not have been provided or not justified, as well as falsification of documents”.
In this sense, referring to the forensic report, it warns that some debtor “would have issued invoices that did not correspond to services actually provided, so they could be false invoices.” Similarly, the CNMV requested information regarding possible discrepancies between costs recorded in accounting and the actual degree of progress of the work included in the report.
