Italian local governments created
some "serious anomalies" on their books through the use of such
complex financial instruments as derivatives contracts, the
Audit Court said Wednesday.
Postings in account books were often "incorrect" while
fiscal regulations were violated and "considerable contractual
imbalances" created, the court said in a report for the Lower
House finance committee.
Governments also failed to properly assess the
cost-effectiveness of derivatives contracts worth about 25
billion euros, the court said.
It said that at the beginning of the year, overall
government derivative contracts were worth a total of about 160
billion euros.
It also cautioned the committee against assuming that
financial market losses for derivatives contracts does not mean
these were made in error or a result of poor management.
Committee member should "avoid simplifications which often
incurs when discussing these topics," the court said.
ALL RIGHTS RESERVED © Copyright ANSA