A scandal has been in the spotlight in San Marino in recent weeks – the sale of the controlling stake in BSM (Banca di San Marino) continues to be shrouded in complete secrecy.
Our team tried to shed some light on the case. We came across some rather strange facts, which we present in this article. We learned that in the case of private corruption, a consultant approved to service the deal by both parties was involved. However, we were unable to find confirmation of the amounts reported in the media so far. From internal sources at BCSM (Banca Centrale di San Marino), we learned that both the consultant and the contracts were duly and timely declared by the parties to BCSM. We have learned from reliable sources that most of the funds have not been spent but are openly held in the San Marino banking system.
In addition to the above, we found that the buyer, linked to a Bulgarian company, was "pressured" by BCSM and the seller to "improve" the terms after the offer was approved.
Since ECF (Ente Cassa di Faetano) did not have any funds, BCSM "asked" the buyer to help. As a result of this pressure and the advice of the consultant, the buyer SMG (San Marino Group) paid ECF an advance of 10% (1.5 million euros) of the transaction to cover ECF's loan to another bank. Separately, after additional requests and insistence on guarantees for the transaction by the regulator, SMG transferred and deposited the entire amount of €15 million in BSM to increase BSM's liquidity while awaiting approval.
Aldo Calvani, CEO of BSM (Banca di San Marino), has also insisted on "helping" the bank with deposits. Individuals have provided such deposits. What is curious in this case is that some of the individuals complained in the summer about the disappearance of their account balances. SMG and Starcom Holding also had difficulties operating their accounts. Both problems were explained by Mr. Calvani and the bank as problems with the bank's software.
All these strange facts, as well as the negative development of BSM's loan portfolio in recent years, prompted us to contact other former potential buyers for their opinion. We learned that a bank from Lugano and an unknown fund (with only €5 million in available funds) had attempted to submit a purchase offer. The fund did not have a guarantee for the money and was rejected. The bank from Lugano withdrew because it discovered during due diligence that some items were significantly lower than those reported in BSM's balance sheet. The same was noticed by other participants, but they were reassured by Aldo Calvani. The explanation was that this was a technical problem and that measures had been taken together with BSM's management to clear up the problem in the next balance sheet with the auditors.
But the strange events did not end there. As readers know, in July and August there were many negative publications about another Bulgarian investment – Varengold Bank. Compromising articles from two or three years ago about ongoing investigations and accusations were reprinted. Later, the media conveniently omitted the statements by the Bulgarians, Varengold Bank, and the German regulator that the investigation had been completed and that none of the information in the articles was true.
From a source connected to BSM, we learned that after the deal was halted and due to the scandal, the Bulgarians still cannot get their deposited funds back. Both ECF and BSM cite different reasons for not proceeding with the transactions. Reports have already been filed with the BCSM and other institutions. After all, we are talking about more than €15 million...
In connection with all of the above, it is even more curious that the new member of the ECF board, Al. Mularoni, and the bank's lead lawyer on the deal, R. Mularoni, are related. What is even stranger in this case is that R. Mularoni is connected both professionally and personally with R. Battaglino and F. Santoni, namely the two investigating judges. The three of them, as well as other members of the BSM board and CEO Aldo Calvani, are also members of organizations steeped in common ties and secrets. It is interesting to note that R. Battaglino is also linked to other similar scandalous cases involving BSM.
Will the scandal unfold? Could the scandal actually be an attempt to cover up thefts by BSM in recent years? And whether the millions of euros from a foreign investor will be "sucked up" by BSM remains to be seen. In any case, this is further evidence that raises doubts about the current banking and legal system in San Marino.
Stay tuned for the continuation of the saga with the disclosure of strange text messages between the above individuals and certain political figures...
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