Parmalat founder quizzed

Prosecutors today questioned Calisto Tanzi, the founder and former chief executive of Parmalat, hours after he was detained by police in connection with alleged fraud surrounding the near-collapse of the dairy company.

Tanzi had not been seen in days, and was reportedly out of the country as the criminal investigation into the scandal-plagued company intensified.

But he had told investigators he was willing to talk to them, and was detained by police in central Milan last night.

Tanzi was held overnight at Milan’s San Vittore prison, and was questioned today by Milan prosecutors Francesco Greco and Carlo Nocerino and Parma prosecutors Antonella Ioffredi and Silvia Cavallari, the Ansa and Apcom news agencies said.

The Milan prosecutors were expected to ask a judge tomorrow to confirm Tanzi’s arrest, Ansa said.

Tanzi’s lawyer Fabio Belloni told reporters outside the jail that he understood his client had been treated well in prison. But he added: “Certainly, it’s a difficult moment for him.”

Tanzi founded Parmalat in 1961 and headed it until earlier this month, when he was ousted as chief executive amid deepening questions about the company’s finances.

He heads a list of about 20 officials, including former financial officers, under investigation for alleged fraud and other charges concerning the suspected falsification of company documents.

News reports said he was being detained specifically on suspicion of fraudulent bankruptcy.

Parmalat’s problems exploded into public on December 19, when it revealed that Bank of America was not holding about €4bn of its funds, as the Italian company had reported in September. Since then, the estimated amount of money missing from its balance sheet has ballooned.

Italian reports say around €11.4bn could be missing from Parmalat accounts after what may have been 15 years of false accounting.

The company filed for bankruptcy protection last week.