Parmalat papers false says Bank
BANK of America, the bank that blew the whistle on Italian food giant Parmalat, today told the Milan prosecutor that documents which bore its name were definitely falsified.
Sources close to the investigation said at the same time that the amount of money for which Parmalat could not produce documentary evidence had doubled to about
e9bn (£6.3bn) since the situation came to light on Friday.
The Milan prosecutor, Francesco Greco, is also heading an investigation into allegations of false accounting against Italian Prime Minister Silvio Berlusconi.
What is already dubbed Europe's Enron is now Italy's largest corporate financial crisis since sugar and agrochemicals combine Ferruzzi Finanziaria collapsed with debts of more than £11bn 10 years ago.
Parmalat shares were suspended for the day pending a statement. After finding vast holes in its accounts, Parmalat is fighting to avoid bankruptcy and is locked in talks with creditors.
A board meeting tonight is due to decide which bankruptcy protection route the group will take. New chairman and chief executive Enrico Bondi is fighting to keep the company operational and secure the jobs of the 36,000 workers it employs.
