EiDF will re-enter the BME Growth market starting at 8:30 am next Monday. The National Securities Market Commission (CNMV) recently announced the end of a precautionary measure it had imposed on April 14, after the Galician company did not publish its 2022 results report on time. For those following the matter, Deloitte’s forensics report, commissioned on August 17 to scrutinize accounting discrepancies, was examined in depth. Although this report contributed important findings, the supervisor nevertheless requested additional information from the photovoltaic self-consumption group to clarify serious concerns raised about shareholding stakeholders. In the supervisor’s view, there were indicators suggesting that certain documents may have been altered, which warrants careful scrutiny from EiDF.
While the CNMV does not directly oversee the periodic financial disclosures of listed firms, it reminds market participants that listed companies must comply with rules governing market abuse and the obligation to disclose privileged information as required by law. The agency stated that EiDF did not meet these obligations, issuing an ultimatum to normalize market behavior. The regulator demanded more detail about the irregularities Deloitte had identified, with a deadline set to deliver information by 8:00 am that day, and required that the company provide this without delay or further commentary. If the information were not provided, the CNMV warned it would bring the forensics findings to the public domain. The situation culminated in a temporary halt to EiDF’s trading as the agency applied its corrective measures, raising questions about internal governance and risk controls at the Barros-based group.
In its latest communications, EiDF was described by Deloitte as possessing strong leadership under CEO and main shareholder Fernando Romero, who has played a central role across commercial activities and corporate development, finance, and strategy. Deloitte’s findings indicate firsthand involvement by Romero in a majority of the company’s decisions. Some third-party transactions displayed patterns where documents were created, altered, or falsified, underscoring a systemic issue that could affect relationships with customers, debtors, and business partners. The report highlights specific instances where the integrity of documentation and oversight were compromised, underscoring the potential impact on ongoing operations and stakeholder trust.
Deloitte’s forensic review covered 51 projects across 35 clients, revealing potential invoicing irregularities associated with material deliveries that lacked proper administrative approvals. The examination also uncovered invoicing for costs that did not align with actual work performed, and instances where costs were recorded without corresponding invoicing, casting doubt on the economic and operational rationale behind revenue recognised according to the progress method. These patterns, if confirmed, would call into question the accuracy of reported earnings and the substance of related financial statements.
CNMV’s directives pushed EiDF to deepen its governance review and consider a leadership transition. The company has announced its intention to appoint a new chief executive from a well-known, prestigious firm as part of an organizational restructuring. The timeline outlined for this transition anticipates a six-month period, during which the company will implement changes in executive responsibilities and strengthen internal controls to restore confidence in its reporting and business practices.