–
Both Belfius and the Belgian government pulled out all the stops on Thursday to show that they did not mislead the duped investors in Arco. ‘We played our role as an intermediary’, says Belfius, while Belgium says it only acted as a ‘firefighter’ during the financial crisis.
–
Belfius and the Belgian government spoke on Thursday in the case that 2,172 cooperants have started around Arco, the investment company of the Christian labor movement that went bankrupt in 2011 after the fall of Dexia. The cooperatives, assisted by the consultancy Deminor, that in the years before that debacle they were misled by Arco, Arco top woman Francine Swiggers, the state and Belfius.
–
What about past Arco benefits?
If the judge decides to annul the contracts between Arco and its cooperators, a number of duped investors could be faced with unpleasant surprises, the Belfius lawyers said on Thursday. Arco shares had many advantages, such as lower interest rates on home loans and discounts at many companies, from fuel oil suppliers to media companies.
‘If the nullity is pronounced, one returns to the situation in the past, as if the agreement never existed,’ says Belfius lawyer Dominique Blommaert. ‘For some cooperatives, the loss of roughly 2,000 or 3,000 euros does not outweigh the annual benefit they have derived from the Arco shares.’
–
–
USSR-periode
But by talking about ‘the Great Deception’, the Deminor camp is creating a mood, Belius lawyer Dominique Blommaert responded. “It’s a bold statement that reminds me of the slogans of the USSR period.”
–
The state bank questions the way in which Deminor tries to prove that Bacob has deceived customers. “The plaintiffs make no effort to show that Belfius is guilty of artifice.”
–
Blommaert ran a survey through the mangle that Deminor had organized among his cooperants. ‘Own claims are not proof. Unfortunately, this is the common thread in this file.’ To illustrate Bacob’s recklessness, it was cited last week that the group had invested in a Chicago bank. ‘In reality, it was an investment in a Luxembourg subsidiary of that group. It was sold for a profit in the mid-90s.’
–
Not a homogeneous group
The Belfius lawyers have just pointed out as Arco last week too that it is not a homogeneous group of cooperators. It would have to be shown individually for each cooperator that they were tricked by Belfius. ‘We see no evidence regarding Belfius,’ said Blommaert.
–
The plaintiffs do not make the slightest attempt to prove that Belfius is guilty of artifice.
Dominique Blommaert
lawyer Belfius
–
–
–
Sébastien Ryelandt, the lawyer of the Belgian state, also questioned Deminor’s burden of proof. The state is said to have put pressure on Arco shortly during the crisis of 2008 to participate in a capital increase at Dexia in exchange for a state guarantee for 350 million euros. ‘But no document shows that Arco’s participation in that capital increase was conditional.’ Ryelandt emphasizes that a government guarantee had to be worked out at an acute moment of crisis. ‘During the concrete elaboration, it quickly became apparent that state aid would become a point of attention. But it wasn’t that it was already clear then that the arrangement was illegal.’
–
The Belgian state intervened as a fire brigade, and now they are accused of not being able to rebuild the house.
Dorothée Vermeiren
Lawyer Belgian state
–
–
–
Like Belfius, the Belgian state emphasizes that the events of the past should not be viewed through today’s glasses. ‘No one had a crystal ball’, said lawyer Dorothée Vermeiren. ‘The average Belgian did not see the crisis coming, any more than the banks or the state. The Belgian state intervened as a fire brigade, and now they are accused of not being able to rebuild the house. But it is not because of the Belgian state that Dexia and Arco got into trouble.’
–
With that, the ball is bounced back towards Arco and Arco top woman Swiggers. Her lawyers will plead Friday.
–
–
