Unexpected Courtroom Moment: Judge Asks Passos Coelho About Presidential Candidacy

Unusual Question in Court

The BES/GES trial experienced a notably unusual moment this Tuesday when the judge posed an unexpected question to former Prime Minister Pedro Passos Coelho about a potential candidacy for the presidency.

According to Correio da Manhã, at the end of the session, Judge Helena Susano asked Coelho, with the microphone off, if he was going to run for the presidency, stating, "You can answer a question without being obliged to tell the truth, and say if you are going to run." Coelho responded, "It’s public and it’s no. To nothing."

Coelho's Testimony on BES

During his testimony, Coelho revealed that in May 2014, he suggested to then-banker Ricardo Salgado that he negotiate a "orderly bankruptcy" with the creditors of the Espírito Santo Group (GES). He recalled that this recommendation came after Salgado and two other members of the bank requested state support for GES.

"That meeting reflected Dr. Salgado's request for the Government to provide guidance to Caixa Geral de Depósitos and potentially offer some positive support for a restructuring plan with other banks," Coelho stated during the trial regarding the main case of the BES/GES collapse.

He emphasized that the BES administration also wanted to explore a "swap of assets" to manage those affecting the group's financial health. Coelho's practical reaction was to communicate that the proposed plan had no viability and suggested that Salgado gather his key creditors to negotiate for an orderly bankruptcy, thus avoiding a chaotic collapse of GES.

Coelho also recalled a prior meeting in April 2014, where Salgado expressed discomfort with how the Bank of Portugal's governor was handling the BES situation, acknowledging that the Bank was keen on replacing the bank's administration and clarifying the confusion surrounding the Espírito Santo Group's circumstances.