Parmalat's ex-finance chief blames boss

Parmalat's former finance chief yesterday insisted the founder of the food group was to blame for a multi-billion-euro accounting scandal, while its new management prepared to ask banks for emergency credit.

With justice authorities in New York stepping up a probe into the role of US banks in the case, Fausto Tonna was taken from prison for new questioning by public prosecutors in Parma, the northern Italian city close to Parmalat's headquarters.

Prosecutors have accused Mr Tonna of helping construct a web of offshore holding companies with fictitious assets that left the global food group with an accounting hole that investigators believe could exceed €10 billion.

A judicial source said former chief financial officer Mr Tonna, in an interrogation which could last into today, reiterated that he had obeyed orders from Parmalat founder Calisto Tanzi.

"I was only following Tanzi's orders," Mr Tonna was quoted by the source as telling the prosecutors.

Earlier Mr Tonna had cursed the media, telling a group of journalists at the prosecutors' office: "I wish you and your families a slow and painful death."

Parmalat's crisis exploded just over two weeks ago when its new managers revealed an initial four-billion-euro gap in its accounts, forcing the company to seek protection from creditors.

Market regulator Consob yesterday asked a Parma court to annul Parmalat's 2002 accounts, which showed net profit of 252 million euros, due to its failure to comply with accounting standards. Mr Tanzi, also under arrest, has admitted to diverting about €500 million from Parmalat to family companies but denies he knew how it was done. He has also said the accounting gap could be as big as eight billion euros.

Parmalat's government-appointed administrator Enrico Bondi was expected to kick off yesterday a string of meetings with Italian banks to seek new emergency loans. News reports have said they could be worth €50 million to €100 million.

But an advisor to Mr Bondi, laywer Umberto Tracanella, told reporters during the afternoon that there had been no decision so far by the banks on whether to provide new credits.

Mr Bondi, who has up to nine months to lay out a rescue plan for Parmalat, earlier yesterday met restructuring advisors Mediobanca and Lazard, an industrial source said.