CMVM President Bought TAP Bonds and Barred from Deciding in Misdemeanor Case

“I admit my disappointment,” says the President of the Commission of Inquiry.

Commission of Inquiry Chairman Jorge Seguro Sánchez said he would have liked Laginha de Souza to provide “more convincing answers and focus more on what was asked.”

Seguro Sanchez also mentioned that he didn’t expect the CMVM chairman to mention “the issue of secrecy” so as not to address some issues. “I admit my disappointment,” he said.

The Investigative Committee decided to shorten the meeting.

Luis Laginha de Souza refuses to ‘comment on internal procedures’ at TAP

When asked about the relationship between CMVM and TAP, Luis Laginha de Souza said it was marked by “differences of opinion.”

The President of CMVM clashed with Deputy PSD João Barbosa de Melo over the fact that the air carrier sent draft messages to the Ministry of Infrastructure to be sent to CMVM. The deputy asked Laginha de Souza if he agreed with this practice and assured that it was not his duty to “comment on the company’s internal procedures.”

Alexandra Reis leaving communique raises doubts

Luis Laginha de Souza emphasized that all data disclosed by TAP and related to the capital market must meet the quality criteria provided by law, such as reliability, completeness, clarity, legality and relevance.

The February 2022 statement announcing the resignation of Alexandra Reis raised doubts and therefore CMVM asked for clarification on the context of the manager’s departure.

Following a request for clarification, the airline amended the statement in which it clarified that Alexandra Reis resigned under a termination agreement and at the instigation of the company, rather than resignation, to devote herself to other professional pursuits.

Laginha de Sousa also said that the airline is complying with financial records as a debt issuer.

TAP did not have to tell the amount of compensation to Alexandra Reis.

With regard to error reporting, Laginha de Souza clarified that the termination of administrator duties must be reported.

However, disclosure of payments to former managers is required only if the amounts could affect the price of the bonds issued. The case of 500 thousand euros paid to former TAP administrator Alexandra Reis is not included in this group, so there was no obligation to report it.

Laginha de Sousa reminds that information is limited to secrecy and secrecy of justice

During the interrogation of Mariana Mortagua, Luis Laginha de Souza assured that he could not answer questions, since the information was limited by the secrecy of supervision and secret justice.

The CMVM president suggested that he could not provide more information on the nature of the TAP process, which was announced by former company chairman Manuel Beja.

President of CMVM bought TAP bonds and is barred from making decisions on the process

Luis Laginha de Souza said that he bought bonds from the carrier before he was appointed to this position, so he cannot participate in board decisions regarding TAP.

However, the CMVM President ensures that he is aware of all decisions.

TAP “already notified” about the proceedings on the case of an administrative offense

The President of the Securities Market Commission (CMVM) confirmed the existence of an administrative liability procedure for TAP, which is related to the quality and timeliness of the directors’ resignations, and stressed that the carrier “has already been notified of the deadline for the decision.”

The fine can be up to five million euros.

“Responsibility for omitted disclosures always lies with the issuer,” says the president of CMVM.

The President of the CMVM begins with the initial CMVM oversight intervention for TAP.

Luis Laginha defines the purpose of the CMVM and the mission of the “behavioral supervisor”.

“Supervision must be based on the law. The CMVM controls the information provided to the market,” he says.

“The issuer is always liable for omissions of disclosures,” he adds.