| Date: | Monday December 22, @01:39PM |
|---|---|
| Author: | ewing2001 |
| Topic: | Flash |
| from the DW dept. | |
Deutsche Welle -22.12.2003
Casting new doubt on European corporate governance, leading Italian food group Parmalat announced last week the firm had a €4-billion discrepancy in its books. The accounting scandal is already being compared to Enron.
Parmalat, one of the world’s biggest dairy companies and a key part of corporate Italy, shocked the country on Friday by admitting €3.95 billion ($4.89 billion) supposedly held by its Bonlat financing unit in the Cayman Islands did not exist.
With reports circulating on Monday that the actual sum missing could be much higher, the scandal will easily overtake the €1 billion bookkeeping shenanigans at Dutch retailer Ahold. That would add credence to analogies that Parmalat has become “Europe’s Enron,” a reference to the failed U.S. energy giant which has become the leading example of bad accounting par excellence.
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printed from European's ENRON on 2004-04-30 22:13:21