CONFISCATIONS/ Squandered assets
Official silence and zero transparency regarding confiscated assets
Under official silence and total lack of governmental transparency there is an apparent embarrassing enigma hovering over the destination of the assets, businesses and media outlets snatched from the Isaias brothers: more than $1 billion dollars in assets, losses of almost $154 million dollars due to the mismanagement of such property and another $18 million pertaining to PetroManabi in limbo.

According to the complaints made by the independent press, the calamity of the administration of the assets is embarrassing and the responsibility falls on the State by way of its administrator, the UGEDEP, which has systematically refused accountability.


There is no information on the initial technical appraisal of the assets and businesses. The sale price is also unknown, as well as, how the proceeds from those sales were used. The destination of the profits generated by these businesses is also unknown, along with their current value and material condition. The expenses that the Trust fund has charged to the businesses are hidden and the reason behind those expenses is a mystery as well. In conclusion, information and sums concerning the State administration of the assets and the economic recourses confiscated from the Isaias family have been hidden from the country.


Some government employees have been using certain assets for their personal use, while others write themselves checks from the accounts of the confiscated businesses. State entities merrily utilize the properties and some public employees have created the immoral traffic of the sale of the assets and illegal associations to negotiate the confiscated businesses. A large part of the businesses were bankrupted due to negligence, looting, corruption and mismanagement.


No depositors suffered losses due to the Isaias administration

Correa sold the electorate a dream that by selling the “confiscated” companies he could finally pay the thousands of depositors who were harmed by corrupt “Isaias” bankers. Nothing could have been further from the truth. In reality: four years after the confiscation, approximately 5 million dollars were paid to depositors of La Previsora that was merged with Filanbanco in 2000 and Previsora International Bank. There is no depositor who suffered losses by the privately held Filanbanco or by the Isaias administration that is why they had no one to pay with the money from the confiscation.


The squandering of confiscated assets and businesses

President Correa' was not kidding when he said that "the State was a bad manager" as he referred to the confiscated assets. Not only were they deplorably managed, some were looted and bankrupted while others were sold at ridiculous bargain prices and in processes lacking transparency.

Pedro Delgado was happily expeditious in his handling and sale of the confiscated assets that were his responsibility. The Isaias defense counsel warned that the property could not be sold because of the threat of fraudulent sales prejudicial to the buyers since the assets were tangled up in a legal proceeding.


The corrupt correistas take confiscated companies

EICA was a prize catch for the correista corruption. They received an advance of $30 million USD from the Ministry of Transportation and Public Works for the purchase of machinery and never fulfilled the contract.  They did the same to some municipalities. Suppliers, intermediaries and shell companies appeared and together with the EICA correistas managers, spent all the resources and disparaged the prestige of the company that the Isaias family built for more than a century with care and precision.

Similar situations occurred in other companies. In Ingenio La Troncal/Ecudos, that was sold to the Peruvian Gloria Group with obvious favoritism and bargain conditions. The sales process was executed under the command of National Finance Corporation (CFN) and the UGEDEP, the same which was declared a no-show the first convocation for the purpose of lowering the price. At the second convocation, the Gloria Group was favored by a substantially lower price. But that was not all; the CFN allowed the Peruvian entrepreneurs to finance the purchase giving them a 15 year loan term and had accepted payment with certificates at a much higher percentage rate than that legally permitted.


Generous with the assets of others

Correa has also used the confiscated companies for political purposes, demagogically offering, shares to workers. That was done in the case of the Hotel Ramada, Gamavision, and TC Television, Ingenio La Troncal/Ecudos among others. Notwithstanding, the regime maintains an unbreakable silence regarding the administration of the confiscated assets thereby violating the Constitution and laws that demand transparency in all acts of Government. The exact amount of the losses due to poor management, looting, corruption and excessive spending is unknown; there is only partial data gathered by the national press, upon which the approximate partial loss is 154 million dollars.




Nobody responds for losses

The official statement calls for the media disqualification of the Isaias brothers to evade accountability for the illegally seized. The Assembly does not supervise and the control organisms along with the judicial power are subject to the Executive, promoting a regime of impunity. Not Pedro Delgado, Katia Torres, the CFN, the entity that acts as a fiduciary of the confiscated assets, the ministers of Finance, the employees at the Superintendent of Banks and not even the President of the Republic respond in face of the information requirements to the defense of the accused or of the independent press.

There is no official response regarding the total amount that has been paid to those affected by the closure of Filanbanco from the sale of the seized companies, The only existing official data is the accounting report issued by Pedro Delgado, indicates that they paid $4,946,318.USD which was taken from Petromanabi  with an outstanding balance of $28,715,052.00 USD, amount that till this day no one has claimed. The lack of transparency allows unscrupulous officials to improperly use the assets and funds that are supposedly pending payment for the “phantom” depositors.


The real estate and leases

However, there's more. Under government power there are about 520 real estate properties. Today the government should be receiving $ 100,000.00 per month only from the leases. If this figure is simply multiplied for the first six years since the assets were seized they should have obtained more than seven million dollars.


The car collection and officer Moncayo

There is also a car collection consisting of 37 vehicles that according to the accounting report of Pedro Delgado were auctioned off for $1,090,900.00 USD. However, current data from the National Transit Agency reveals that at least 20 of these vehicles remain as property of the businesses seized from Isaias group, while ten others appear to have no owners. In other words, 30 cars may not even have been sold. The companies that have several of these vehicles in their names are Carinco S.A. and Ciploche S.A., which are under the management of Patricio Moncayo. Moncayo is a special character. In the document where he is appointed administrator of Ciploche SA he signed with one state identification number, but on the official website of the Judicial Council he appears to have another one. Chiploche S.A. the company managed by Moncayo holds title to such luxury vehicles like a Porsche 911 and Corvette C2. This same official manages 25 other companies that were seized from Isaias group.


LINKS:

http://www.planv.com.ec/investigacion/investigacion/caso-filanbanco-15-anos-mucha-politica-y-poca-justicia http://www.elcomercio.com.ec/negocios/empresas-incautadas-Isaias-AGD_0_952104828.html


“After ten years, Filanbanco's depositors can withdraw their money, How did we do it?

We seized Petromanabi from Isaias Brothers, when we realized that this company was theirs. It is unbeleivable, how much it generates, 11 to 12 millon dollars every 15 days."
Detailed losses
Ingenio La Troncal / Ecudos:
At the time it was seized, the audit hired by the AGD appraised the sugar mill pertaining to the Isaias Group at $238.571.551.00 USD. Notwithstanding, three years later, on September 14, 2011, 70% of its shares were auctioned off for $133.810.875. USD that’s to say, there was a loss of 33.189.210.00 USD.

But, that is not all, almost a year later, on September 13, 2012,the news agency ANDES revealed that 12,4% of the shares of the sugar mill had been sold to the employees of the mil for $23.703.640.00 USD, generating another deficit regarding the initial value, this time for $5.879.232.00 USD. In summation, with the sale of 82.4% of the shares of Ecudos, there is a loss of $39.068.442.00 USD.  

Grupo TV Cable:
35.48% of the shares of this company belonged to the Isaias Group. The official report shows how said share package was worth $72.051.433.00 USD, but it was sold for only $61.463.387.00. In other words, that’s a loss of $10.588.046.00 USD.

Hotel Ramada:
The sale of this company was in two: the actual property and the administration of the business. At the time of the confiscation, the value of the complete package was $7.096.152.00 USD, however, it was sold for $5.278.917.00 USD, generating a loss of $1.817.235.00 USD.

Budget:
The renown auto rental company was valued at $5.568.662.00 USD by the AGD but, was ultimately sold for 2.8 million USD, according to that which appears in the accountability report dated December 2011 presented by Pedro Delgado, the head of the AGD-CFN Trust fund No More Impunity at the time. Here the loss was $2.768.662.00 USD.

EICA:
This was the oldest company pertaining to the Isaias Group, whose value at the time of the confiscation was $40.361.550.00 USD. However, after the constant problems it had under state administration the Government valued it at $7.200.000.00 USD, according to a note published in the newspaper El Comercio, based on official information creating a loss of $33.161.550.00 USD.

Maxigraf:
At the moment it passed to State hands, this company was valued by the AGD at $5.954.661.00 USD, however, it went bankrupt in hands of the government. Its current value is zero, thereby generating a total loss.
Fishing Vessels:
Una flota de tres barcos pesqueros avaluados por la AGD en 9.969.470 dólares fueron subastados por 8.400.000 dólares, registrándose así una rebaja en su valor de 1.569.470 de dólares.

PetroManabí:
This was another business confiscated by the government of the citizen’s revolution. According to the AGD, at the time it passed to State hands, its value was $34.400.000.00 USD. Additionally 23 million US dollars were transferred to Filanbanco as profit for alleged payments to depositors.

According to Pedro Delgado’s accountability report, those who suffered losses at Filanbanco were paid 4.946.318 dollars; Money that according to Delgado himself, told the Court in Florida, on September 2012, had been obtained from PetroManabí. This means that there was a remainder of the $18.053.682 USD, of which no one has referred to. On that occasion, before the US court, Delgado could not explain what had happened to that balance. In this company, the loss amounted to $57.400.000.00 USD.

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