Joe Berardo appeals to Constitutional Court to block foundation extinction

Businessman Joe Berardo has appealed to the Constitutional Court in an attempt to block the extinction of the Fundação José Berardo. This legal move follows a decision by the Supreme Administrative Court (STA) that upheld the government's 2022 order to dissolve the foundation.

The extinction was originally determined by the Portuguese government based on a 2021 audit by the General Finance Inspection (IGF). The audit concluded that the foundation had ceased to serve its intended purpose, instead functioning as a financial investment platform. By the end of 2017, the foundation had accumulated approximately 980 million euros in loans, primarily used to acquire shares and corporate holdings.

The dissolution of the foundation is a critical development in a long-standing legal battle involving major banks, including Banco Comercial Português (BCP), Caixa Geral de Depósitos (CGD), and Novo Banco. These institutions are seeking to recover nearly 962 million euros in outstanding debts. The extinction process paves the way for the foundation's liquidation and the removal of Renato Berardo from its management, potentially facilitating the banks' efforts to seize assets, including significant art collections.