If you leave out that many companies how can the accounts be true and fair?

Posted on

Fortis has collapsed. Some are suggesting this could have been because of debt not consolidated in its accounts.

The follwoing companies were not consolidated in its last accounts:

Abic Holding, Acens Technologie, Albankerb Investments, Alchinofin B.V., Antilope Invest, ASLK-CGER Services
ESV, AstenJohnson (Holland) B.V., Autor Publicidad Esterior S.L., Avinguda Holding S.A., BPC Developpement,
Basement Holding B.V., Battery Technologies, Bigblue Investments S.?†.r.l., Bohemia Corporation, Brampton
Corporation, Carinthia Corporation N.V., Ceedsa Holdings S.L., Cherras Investments S.?†.r.l, Cixi Investments
S.?†.r.l., Colfridis Invest, Coppefis, CP (New Zealand) Trustees Ltd, Decom Services Ltd, Directiepensioenfonds
Hesse B.V., Discontokantoor van Turnhout, Dis Globus Malta Ltd., El Paso LNP Holding BV, Embon Investments
S.A.R.L., Emerald Shipping B.V., Eurl Gourville Immobilier, Euroheart Investments S.?†.r.l., Fagus, FB Sector
Finance LP, Fidass I B.V., Fidass II B.V., Fortis Agency Limited, Fortis Asia Limited, Fortis Bank Escritorio de
Representacao Ltda, Fortis China Limited, Fortis Far East Limited, Fortis Foreign Fund Services AG, Fortis
Futures Limited, Fortis Greater China Limited, Fortis Group Ltd, Fortis Insurance Limited, Fortis International
Limited, Fortis L Capital, Fortis Limited, Fortis Management Limited, Fortis Private Equity Arkimedes N.V., Fortis
Services Limited, Fortis Services Mon?©tiques, FP Consult (Guernsey), Generale Branch Nominees Ltd., Geneve
Credit & Leasing SA, Gesch?§ftsf?ºhrungsGmbH der Generale Bank, Grandall International Holding Ltd, G??zman,
Gymna Uniphy B.V., Gymna Uniphy N.V., Hedona?Ø Estetica Integral S.L., Heijboma B.V., Holding Vreedenlust
Fund II, I.D.B.P., Imag SPV, Innovative Medical Solutions BV, Innovative Medical Solutions Holding B.V.,
Jetowner Investments S.?†.r.l., Jmex BV, Kathmandu Holding BV, Konzeptual Holding S.A., Mine.be, Mitsou
Fashion S.?†.r.l., Nathan Beheer B.V., Newton Green Air Investments I, Newton Green Air Investments II, Nicolas
Investments Corporation, Nimox Invest B.V., Novy N.V., OB Invest, Oboist Holding B.V., Packing Invest, Par 3,
Paradize Investments S.A., Parisienne d'Acquisition Fon?ßi?®re, Penne International, Pensioenfonds J.G.H.M. van
Lier B.V., Queensland Corporation N.V., Relf Beleggingen, Rothesay, Savina International Inc, SCI Norlum,
Sybetra S.A., Tentaclo Nets Holding II BV, Tondola Holding BV, Tripan International B.V., Uniphy Elektromedizin
Beteilgungs GmbH, Uniphy Eltektromedizin Gmbh & Co KG, Veldpoort Beheer BV, Velleman International, VIAZaventem
N.V., Von Essen GmbH, Von Essen KG - Handelsgesellschaft, Wa Pei Nominees Ltd, Wassenburg
Beheer B.V., Wendilo Investments S.A.R.L.

They say:

In global the impact of not consolidating subsidiaries of minor importance is not material in the annual accounts of
Fortis Bank.

I don't believe them.

There were €159 billion of off balance sheet items at the end of their financial year 2007 (note 47 to the accounts). That's what is being bailing out.

I hope KPMG and PWC as joint auditors carry the can for this. They deserve to.