The Parmalat Scandal Report : Parmalat

2351 Words Nov 3rd, 2016 10 Pages
Parmalat Scandal Report
Overview
Parmalat SpA is a multinational Italian dairy and food corporation that specializes in UHT (Ultra High Temperature) production of long-life milk. It was founded by Calisto Tanzi in 1961 and the headquarter is based in Collecchio, Italy. From the year of 2014, the company’s revenue amounted to around 5.6 billion euros. The group is present in 33 countries with 73 factories around the world employing more than 36,000 employees. In 2003 the company collapsed with a €14 billion hole in its accounts and it is still considered the Europe’s biggest bankruptcy.

Key Players in the scandal
Calisto Tanzi - 10-year sentence for market rigging, accounting fraud(2009)
Fausto Tonna, CFO - 2-year sentence for forgery, creating many offshore companies
Grant Thornton firm - lawsuits filed dismissed in 2009
Deloitte and Touche firm
Citicorp - Parmalat was ordered to pay $364.2 million

When did it happen?
It was believed that Parmalat started the scandal as early as 1989. The largest amount of forgeries were created during the period of 1996-2002 when Parmalat expanded its territory to oversea markets. The scandal broke out in 2003 and is still considered Europe’s biggest bankruptcy.
The Scandal
Parmalat started in 1961 and by the early 2000s, the small Italian company had become a global food empire spanning 30 countries and employing over 35,000 people. In 1996, Parmalat jumped into the global financing market in a big way, financing multiple…
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