Parmalat SpA is a multinational Italian dairy and food corporation. Having become the leading global company in the production of ultra high temperature (UHT) milk, the company collapsed in 2003 with a €14 billion ($20bn; £13bn) hole in its accounts in what remains Europe's biggest bankruptcy.^[2] Today, Parmalat is a company with a global presence, having major operations in Europe, Latin America, North America, Australia, China and South Africa. Since 2011, it is a subsidiary of French group Lactalis.

Still specializing in UHT milk and milk derivatives (varieties of yogurt, cheese, butter, ice cream, etc.), the group also has an interest in fruit juices. These products are distributed under well-known brand names such as Lactis, Santal, Malù, and Kyr. Its worldwide operations include almost 140 production centres and more than 36,000 employees, while 5,000 Italian dairy farms are dependent on the company for the bulk of their business. Its shares are listed on the Milan Stock Exchange.

Early history (1961–2002)[link]

In 1961, Calisto Tanzi, a 22-year-old college dropout, opened a small pasteurisation plant in Parma. Two decades later, the company had grown into a multinational corporation diversifying into milk, dairy, beverage, bakery, and other product lines in the 1980s, becoming listed on the Milan stock exchange in 1990, and expanding further in the 1990s. By 22 April 2002, Parmalat's share price had reached a record and the company was valued at €3.7bn, employing over 30,000 people in 30 countries. The company began to expand and had listed in its portfolio amongst other things: an expansion in the space of a decade from six countries into thirty and ownership or sponsorship of Parma A.C., S.E. Palmeiras, Brazilian Formula One racing driver Pedro Diniz, ParmaTour (a travel group) and Odeon TV.

Parmalat in Formula One[link]

Pedro Diniz driving for Forti in 1995.

Parmalat's name was notable outside Italy in Formula One. Its name was emblazoned on the cap of Niki Lauda, which he always wore following his 1976 German Grand Prix accident. The Brabham Formula One team was sponsored by Parmalat through some of its most successful years in the late 1970s and early 1980s. Owned by Bernie Ecclestone, Nelson Piquet and the Brabham team won two World Drivers Championships while sponsored by Parmalat. It also sponsored Pedro Diniz throughout his Formula One career, and Its logo was seen on Forti, Arrows, Ligier and Sauber cars from 1995 to 2000.

Financial fraud (2002–2005)[link]

In 1997, Parmalat jumped into the world of financial markets in a big way, financing several international acquisitions, especially in the Western Hemisphere, with debt. But by 2001, many of the new divisions were producing losses, and the company financing shifted largely to the use of derivatives, apparently at least in part with the intention of hiding the extent of its losses and debt. In February 2003, chief financial officer Fausto Tonna unexpectedly announced a new €500 million bond issue. This came as a surprise both to the markets and to the CEO, Calisto Tanzi. Tanzi forced Tonna to resign and replaced him with Alberto Ferraris. According to an interview he later gave Time magazine, Ferraris was surprised to discover that, though now CFO, he still did not have access to some of the corporate books, which were being handled by chief accounting officer Luciano Del Soldato. He began making some inquiries and began to suspect that the company's total debt was more than double that on the balance sheet^{[citation needed]}.

The plan for a €300M fundraising effort was dropped in September 2003 and the company's shares depreciated significantly as a result of the publicised concerns raised over transactions with mutual fund Epicurum, another Cayman-based company linked to Parmalat by November. Ferraris resigned less than a week after the public fall-out and was replaced by Del Soldato. Del Soldato resigned the next month, unable to get cash from Epicurum fund, needed to pay debts and make bond payments totalling at least €150M. Enrico Bondi was called in to help the company as it went into administration, while Tanzi himself resigned as chairman and CEO. Parmalat's bank, Bank of America, then released a document showing €3.95 billion in Bonlat's bank account as a forgery. Prime Minister Silvio Berlusconi initiated a fraud investigation and appointed Bondi to administer the company's rescue. Hundreds of thousands of investors lost their money and would never recover it. The company officially went bankrupt, though the Italian government used the legal mean "commissariamento" to save the trademark^{[citation needed]}.

Calisto Tanzi, once a symbol of unlimited success, was detained hours after the firm was declared officially insolvent in late December and admitted that there was a hole of €8bn in Parmalat's accounts, but denied any cover-up. The arrest of five further executives of the company followed. The auditors of the administration eventually determined that the debts amounted to €14.3bn, which was almost eight times the sum originally stated. Several of the company's subsidiaries subsequently went insolvent, including its Brazilian and American operations and its football club in Parma, before Parmalat sued several multi-national banks for huge sums of money^{[citation needed]}.

Tanzi was eventually charged with financial fraud and money laundering. Italians were shocked that such a vast and established empire could crumble so quickly. Among the questionable accounting practices used by Parmalat: it sold itself credit-linked notes, in effect placing a bet on its own credit worthiness in order to conjure up an asset out of thin air. After his arrest, Tanzi reportedly admitted during questioning at Milan's San Vittore prison, that he diverted funds from Parmalat into Parmatour and elsewhere. The family football and tourism enterprises were financial disasters; as well as Tanzi's attempt to rival Berlusconi by buying Odeon TV, only to sell it at a loss of about €45 million. Tanzi was sentenced to 10 years in prison for fraud relating to the collapse of the dairy group. The other seven defendants, including executives and bankers, were acquitted. Another eight defendants settled out of court in September 2008.^[2] In September 2009, three lawsuits by Parmalat Capital Finance Ltd. and Enrico Bondi, CEO of Parmalat, against Bank of America and auditors Grant Thornton, were dismissed.^[3]

Parmalat in the world (now)[link]

Parmalat in the world: in blue directed presence, in green presence under license

Direct presence[link]

• Italy
• Portugal
• Romania
• Russia
• Australia
• Botswana
• Canada
• Colombia
• Cuba
• Ecuador
• Armenia
• Mozambique
• Nicaragua
• Paraguay
• South Africa
• Swaziland
• Venezuela
• Zambia

Presence under licence[link]

• Brazil
• Chile
• China
• Dominican Republic
• Hungary
• Mexico
• Spain (Clesa)
• United States of America
• Uruguay

See also[link]

Companies portal

• List of Italian companies
• Corporate abuse
• Gianmario Roveraro

References[link]

External links[link]

• Official website
• BBC "Parmalat in Bankruptcy Protection" December 24, 2003
• Parmalat dream goes sour; The Observer; January 4, 2004
• How It All Went So Sour - The inside story of Parmalat; Time Magazine; November 23, 2004.
• There is Something about Parmalat (On Directors and Gatekeepers); Simone di Castri and Francesco Benedetto on ssrn.com.

v t e FTSE MIB companies of Italy A2A Ansaldo STS Assicurazioni Generali Atlantia Autogrill Azimut Holding Banca Monte dei Paschi di Siena Banca Popolare dell'Emilia Romagna Banca Popolare di Milano Banco Popolare Buzzi Unicem Campari Group DiaSorin Enel Enel Green Power Eni Exor Fiat Fiat Industrial Finmeccanica Impregilo Intesa Sanpaolo Lottomatica Luxottica Mediaset Mediobanca Mediolanum Parmalat Pirelli Prysmian Saipem Salvatore Ferragamo Snam STMicroelectronics Telecom Italia Tenaris Terna Tod's UBI Banca UniCredit

Beppe Grillo
Leader of the Five Star Movement
Incumbent
Assumed office October 4, 2009
Personal details
Born	(1948-07-21) 21 July 1948 (age 63) Genoa, Italy
Nationality	Italian
Political party	Five Star Movement
Relations	Married
Children	6
Occupation	Comedian, Activist, Politician
Religion	Roman Catholicism
Website	http://www.beppegrillo.it/

Giuseppe Piero Grillo, better known as Beppe Grillo (born 21 July 1948), is an Italian activist, blogger, comedian and actor. He has been involved in politics since 2009 as leader of the Five Star Movement.

Biography[link]

Grillo was born in Genoa, Liguria.

After receiving his degree as an accountant, Grillo became a comedian by chance, improvising a monologue in an audition. Two weeks later he was discovered and launched by Italian TV presenter Pippo Baudo. He subsequently participated in the variety show Secondo Voi for two years (1977–78). Later, in 1979, he participated in Luna Park by Enzo Trapani, and Fantastico.

In the 1980s his success rose further, thanks to shows like Te la do io l'America (1982, 4 episodes) and Te lo do io il Brasile (1984, six episodes). In these shows, he narrated his experiences of his visits to the United States and Brazil, with anecdotes and witticisms about the culture, lifestyle and beauty of these places.

As a result, his popularity grew more and more, and he became the protagonist of another show developed especially for him, called Grillometro (Grillometer). In 1986, he was the star of prize-winning advertisements for a brand of yogurt.

Soon after this, his performances began to be characterized by an increasing level of political satire, often expressed in such a direct way that he quickly offended a lot of Italian politicians. In 1987 during the Saturday night TV show Fantastico 7, he attacked the Italian Socialist Party and its leader Bettino Craxi, then Italy's Prime Minister, on the occasion of his visit in the People's Republic of China. Grillo said:

If the Chinese are all socialists, whom do they steal from?

The joke hinted at the totalitarianism of the PRC, but even more to the widespread corruption for which the Italian Socialist Party was known. As a consequence, Grillo was effectively and silently banished from publicly owned television; yet, he was vindicated a few years later when the Italian Socialist Party had to be disbanded in a welter of corruption scandals known as Tangentopoli, uncovered by the Mani pulite investigation. Craxi himself died in Tunisia, unable to return to Italy where he would have been jailed for several convictions.

Consequently, from the beginning of the 1990s his appearances on television became rare: according to many people, the reason for this is a silent ostracism by politicians offended by his revelations about their hidden financial activities, frauds and false claims. When one of his shows was finally allowed to be broadcast by RAI, in 1993, it obtained a record share of 16 million viewers. He was later banned definitively from Italian television.

He currently performs in theatres in Italy and abroad, often with outstanding success.^[1] Grillo's themes include energy usage, political and corporate corruption, finance, freedom of speech, child labour, globalization, and technology. Recently Grillo started to encourage the use of Wikipedia as the future of knowledge sharing, and generally he is a strong proponent of internet freedom.^[2]

Political activism[link]

Beppe Grillo in Bologna speaking at V-Day.

Grillo has spearheaded several national and international political campaigns. On Sept. 8, 2007, he organized a "V-Day Celebration" in Italy; the "V" stood for vendetta, vengeance, and vaffanculo ("fuck off"). During the rally, Grillo projected the names of two dozen Italian politicians who had been convicted of crimes ranging from corruption and tax evasion to abetting a murder. More than 2 million Italians participated in this rally.^[3] Grillo also used this rally to urge Italians to sign a petition calling for the introduction of a Bill of Popular Initiative to remove members of the Italian Parliament who have criminal convictions of any kind from their office.^[4] According to Internet scholars, V–day was the first case in Italian history of a political demonstration developed and promoted via word–of–mouth mobilization on the blogosphere and the social web.^[5]

This was followed by the second V-Day on 25 April 2008, in Turin, S.Carlo square. This V-Day was dedicated to the Italian press and its government financial support; Grillo heavily criticized the Italian press for the lack of freedom; Umberto Veronesi (about his support for incinerators); NATO bases in Italy, the politicians (Silvio Berlusconi had recently been re-elected) and Retequattro, still holding on to TV frequencies already assigned to Europa 7 [2].

Beppe Grillo in Turin during electoral campaign.

On 1 September 2005, thanks to contributions from readers of his blog, Grillo bought a full page advertisement in the Italian newspaper La Repubblica in which he called for the resignation of the Bank of Italy's (then) governor Antonio Fazio over the Antonveneta banking scandal. In October 2005, Time chose him as one of the "European Heroes 2005" for his constant battle against corruption and financial scandals.^[6]

On 22 November 2005 Grillo also bought a page in the International Herald Tribune, again claiming that members of the Italian Parliament ought not to represent citizens if they have ever been convicted in a court of law, even in the first degree of the three available in the Italian system.^[7] His blog now contains a regularly updated list of members of the Italian Parliament who have been convicted in all three degrees, in what he calls "operation Clean Parliament".^[8] Grillo claimed, in 2007, that data suggested that even Scampia, the most dangerous suburb of Naples and one of the areas with the highest crime rate in Europe, actually had a lower crime rate than the Italian parliament's membership.^[9]

On 26 July 2007 Grillo was permitted to speak to the members of the European Parliament in Brussels, where he drew attention to the dangerous, negative state of current Italian politics.^[10]

In August 2008, Grillo was the subject of a report on the Australian Broadcasting Corporation's (ABC-TV) international affairs program "Foreign Correspondent". Titled "The Clown Prince" the report profiled Grillo's life, political activism, V Day campaign, and use of the internet as a political tool.^[11]

In 2010, he started a political movement called "Movimento 5 stelle" ("Movement five stars"), without the desire to be a leader and to be elected, but only to join, by the Internet, people who believe in ideals like honesty and direct democracy, and saying that politicians are only subordinates of the people and that they should work for the country only for a short time and only if they are not condemned for crimes, and thinking about the problems of their country without any other interest. The movement will be truly a party chance only from the next political round, when they will purpose their name not only in some regions but also in the political elections. The five stars represent the five basic points of the shared program: Water, Environment, Transport, Connectivity, Growth.

Beppegrillo.it[link]

Grillo maintains a blog (available in Italian, English and Japanese) at beppegrillo.it which is updated daily. Comments to posts regularly top the thousands (in the Italian version). According to Technorati, the blog is ranked among the 10 most visited blogs in the world. In 2008, The Guardian ranked Grillo's blog among the world's most powerful blogs.^[12]

Grillo often receives letters of appreciation and support from prominent figures, such as Antonio Di Pietro (former Italian Minister of Infrastructures), Fausto Bertinotti (former President of the Italian Chamber of Deputies), Renzo Piano, and even Nobel Prize Winners (like Dario Fo, Joseph E. Stiglitz, Dalai Lama, Muhammad Yunus).^[13]

Legal issues[link]

In 1980 he was found guilty of manslaughter for a car accident in which he was the driver; three passengers lost their lives.^[14]

During his shows Grillo never hesitates to name firms and personalities he considers corrupt, always supporting his views with data and documents^{[citation needed]}. For this reason he has been sued several times for libel by many people and organizations which he had exposed, such as Telecom Italia.

When Italian judges were investigating the Parmalat scandal, which was then the world's largest corporate bankruptcy scandal ever, Grillo was called to testify as he anticipated the imminent collapse of the dairy conglomerate in one of his shows. When he was asked by judges how he has been able to discover that, he simply said that Parmalat's financial holes were so evident that anybody who had enough ability to see them would see them, since the corporate accounting was easily accessible.^[15]

Criticism[link]

Grillo is often criticized for his lifestyle. In particular, critics blame him for owning a motor yacht and a Ferrari sports car, both being in contradiction with his well known ecologist stance. In his blog he admits that he did, in fact, acquire both but has since sold them.^[14]

Grillo is also criticized for taking advantage of the Condono Tombale, a fiscal amnesty granted by the first Berlusconi government in 2001, which Grillo publicly opposed.^[16] Grillo commented on this issue during the V-Day demonstration. He said that he had personally benefitted by only €500^{[citation needed]}.

Grillo has proposed that members of the Italian Parliament who have a criminal record should be barred from public office. As Grillo himself has been found guilty of involuntary manslaughter caused by a car accident^[14] his critics^[who?] say he has no right to represent Italians either. Grillo has always stated that he is not interested in becoming a member of the Italian Parliament anyway.^[14] Despite this, in July 2009 he publicly expressed his intention to present himself as a candidate for the PD's primary elections^[17] which, however, does not imply automatic presence in the Italian parliament.

Another proposal of his is that members of Parliament be limited to two government terms of office after which they might not stand again. Detractors^[who?] argue that this would shorten the political life of competent and expert politicians, usually drawing Alcide De Gasperi, Aldo Moro and Enrico Berlinguer as examples of brilliant politicians who served more than two terms. Marco Travaglio replied that, for that sake, also the political life of much less popular Clemente Mastella would have suffered.^[18]

Grillo is criticized as being a mere demagogue who attacks politicians on superficial issues and their private lives while unable to provide a valid alternative. For instance, Daniele Luttazzi, famous Italian satirist, criticized Grillo in 2007 in an open letter published on the website of the news magazine Micromega. Luttazzi accused Grillo of being a "demagogue" and a "populist", suggesting Grillo to choose between satire and politics, asserting the two are incompatible.^[19]

In 2007 Grillo criticized the "Memorial Day of Foibe Massacres and Istrian-Dalmatian exodus" and the President of the Italian Repubblic Giorgio Napolitano^[20]

Filmography[link]

Grillo has appeared in three movies:

• Cercasi Gesù (1982)
• Scemo di Guerra (1985)
• Topo Galileo (1987)

In 2008, Grillo featured in the documentary, The Beppe Grillo Story, produced by Banyak Films for Al Jazeera English.

References[link]

External links[link]

Official websites[link]

• The English version of Beppe Grillo's personal blog
• Beppe Grillo's fans meeting map around the world

Other resources[link]

• 'Time' article about Grillo
• 'New York Times' video about Grillo
• 'New Yorker' Beppe’s Inferno