10.28.17

Gemini version available ♊︎

The Financial Handling of the EPO is Incredibly Scandalous

Posted in Europe, Finance, Patents at 3:57 pm by Dr. Roy Schestowitz

Also see: A “Perfect Recipe for Fraud” at the European Patent Office (EPO)

Battistelli penthouse

Summary: Billions of euros from EPO stakeholders are mishandled and Battisteli even builds himself a bar (as shown above) using that money

THE EPO tries hard to hide internal affairs. It does not want matters to boil over or spill over (beyond the blurry boundaries of Eponia), for that might cause Benoît Battisteli to be held accountable for his horrific, jaw-dropping actions.

Earlier today we noted that a French politician, Claudine Lepage, had complained about what Battisteli does to the image of France. She was far from the first one warning about this and SUEPO has just posted about this too. To quote:

On 27 October 2017, Claudine Lepage, French Senator, reported again on the social situation in the European Patent Office (in French).

The original Q & A, published by the French Senate can be read here.

We are still hoping that a decent translation will turn up (one we can safely comment on, without risk of reliance on mistranslation).

Either way, here a transcript of highly interesting exchanges which occurred during last Budget and Finance Committee held in Munich last week.

“A nice little stop for Battistelli who wanted a vote on his proposal,” a source told us, “for doing basically what he wants with the cash on the EPO accounts. Thanks to the IT delegation which requested that the point be shifted from “for decision” to “for information” Battistelli did not get what he wanted.

“This exchange is surrealistic and shows the despicable lack of any decent system of check and balances at EPO. We speak here about what to do with the huge amount of cash available on the giro account of the EPO (over 2 BILLIONS EUR of applicants’ money) which incompetent “top managers” think they can manage competently. The public must know what is happening in this organisation.

“But of course there is no corruption at EPO (since all investigations target primarily union leaders and staff reps or joe average staff members) decision makers (who can decide upon millions of applicants’ money) can sleep tight.”

Some insiders told us there is also financial fraud, but there aren't sufficient whistleblower protections for the relevant people to come out with the evidence.

Either way, or in any event, the following transcripts speak for themselves:

Point 10.5 New investment policy for EPO

 

Chief Financial Officer EPO: [he presents a PowerPoint]

From 850 million euros in 2011, we have come to 2.11 billion euros in cash in 2017. We still manage the funds with guidelines dating back to the 90s. At present, we have invested 90% in bond papers. 10% are fixed in bank accounts. 0.33% was the average for bond papers in recent years. The continuation of this investment policy would be a sign of a poor investment. Deloitte has recommended to make the guidelines more flexible. The cash can be invested over a long-term period. It was recommended to invest 380 million euros per year in long-term debt with 1.17% return per year. The investment mandate must be revised so that the investments can be made more flexibly. For this purpose, For example, shares. The longer investment period would minimize the risk of volatility. Other European investors are widely diversified. We asked Mercer for a study. The potential losses should not exceed the profit from 2017, ie 400 million euros. Mercer has simulated a flexible plant distribution. We want to achieve a return of 4% per year. This would require 35% equities, 55% fixed income investments and 10% alternative products. € 250 million of cash reserves would come from operating surplus. 10.6 billion euros would come together by 2036. Despite a conservative approach, the Office is able to achieve € 12 billion by 2036. For this purpose, an approach in two steps must be selected. First of all, the inventory directive has to be revised. Then you need to select one or several fund managers to generate a 4% return. The document provides you with all the information in the appendix. In the second step an external provider has to be selected. In September, an FAC was set up, which also includes high-ranking external staff. The Office proposes a more flexible stocking directive.

 

Germany:


A presentation is something different than the document. It is about important decisions. We share the view that the investment policy must change. But there must be more details. The Federal Court of Auditors and the Ministry of Finance have told us that the document is not acceptable. You go to Mercer and show us the result. We should believe you. The parameters must be set precisely in advance. The WIPO shows that it is possible. The distribution of assets and the distribution of risk and governance are all much clearer. In the presentation everything was much more harmless than in the document. The document does not contain a distribution of the investment. 2 billion euros could be invested in high-risk investments. I do not suppose that this is the goal, but I would like to take it from the document. We have nothing in principle against outsourcing. But we are missing information on profitability. The RFPSS is managed internally. Why should the cash now be managed differently? It is currently quite open, who should intervene if and when an undesirable development occurs. It is said that the EPO should still provide documents. We would like to decide in advance. We do not want to give any general authorization and then have to agree piece by piece. We would like to see the overall strategy. WIPO has provided much more precise information. We would like to see this as an orientation. Then, in May, with a modified document, you can hopefully initiate a vote based on sound data (emphasis added).

 

United Kingdom


We have voted in favor of this document being for information purposes only. Not because the president is no longer responsible, but because there are many elements missing in the document, we have done so. Here the risks are fictive. The resources of the Office must be used transparently. For the first time, I hear a 4% return. I would have preferred that the German CPI plus be taken. I do not see a proper methodology in the document. The investment distribution is also not listed. The guidelines on page 9 allow much greater risks than they can be addressed by the RFPSS. The RFPSS can not buy high-yield bonds. The Office could do so. That would still be something we would approve. We need a much better overview. Without an appropriate framework, this is not acceptable. Similar changes were made in other international organizations and everything was very clear. With this document I can not tell my government that everything is in order (emphasis added).

Remember that many people’s pensions are also at stake here. Can they trust crooked Battistelli and his team, who love to reward themselves? They don't disclose this, they just take the money. Battistelli wasted millions of euros building himself a palace using budget that allegedly belongs to an external contractor, inducing big losses for that contractor.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

DecorWhat Else is New


  1. IRC Proceedings: Wednesday, October 27, 2021

    IRC logs for Wednesday, October 27, 2021



  2. [Meme] False Choices and False Dichotomy Designed for Self-Harm

    The self-serving EPO surveys, which Benoît Battistelli and António Campinos design to justify their own policies, have severe flaws in them



  3. Links 27/10/2021: XOrg Server 21.1 and Makulu Shift Ubuntu Variant Released

    Links for the day



  4. Links 27/10/2021: Murena for /e/ and Red Hat Condemned for Its Nationalism/Racism

    Links for the day



  5. [Meme] EPO Presidential Surveys

    The 'social democracy' of Benoît Battistelli and António Campinos as demonstrated by a controlled survey (controlled by the subject of the survey, EPO governance)



  6. 'Shaping the New Normal' Survey at the EPO Got 5,554 EPO Staff to Participate, But It Was Controlled by Liars With an Agenda

    Last year’s EPO ‘study’ (hogwash about “quality” and other unscientific junk) was likely biased by virtue of autocrats controlling it and exploiting it for nefarious agenda and brainwashing of national delegates. The Staff Union of the EPO (SUEPO) has a new survey in the making.



  7. Many of the National Delegations (or Delegates) in the EPO's Administrative Council Have No Understanding of What They Vote on

    One must consider the possibility that ignorance or gullibility (which lack of qualifications may entail) possibly became a contributing factor — malice and bribery aside — in systemic failure of the EPO’s governance



  8. The EPO’s Overseer/Overseen Collusion — Part XXV: The Balkan League - Fresh Blood or Same Old, Same Old?

    We take stock of "captured states" that voted in favour of unlawful "Strike Regulations"



  9. IRC Proceedings: Tuesday, October 26, 2021

    IRC logs for Tuesday, October 26, 2021



  10. Beatriz Busaniche Speaks Up in Defense of Richard Stallman

    Beatriz Busaniche sent us this comment in July 2021. She wrote it originally in Spanish. Here are both the original text and our translation to English.



  11. Links 26/10/2021: SUSE Linux Enterprise Micro 5.1 and Multi-Distro Benchmarks

    Links for the day



  12. Links 26/10/2021: Vulkan 1.1 Conformance for Raspberry Pi 4 and Tor Browser 10.5.10

    Links for the day



  13. [Meme] Sounds Legit

    When not cheating on the wife, the EPO‘s “doyen” cheats in the exams and makes it into the epi Council, in effect working “[t]owards a common understanding [sic] of quality” with “patent attorneys nominated as “assessors” by the EPO, epi and BusinessEurope” (notorious lobbyists for dictators, litigation, and monopolies, neither business nor science)



  14. [Meme] Mayoral Patent Office Chief

    As it turns out, political 'double-dipping' isn't just a thing in North Macedonia, Austria, and EPOnia



  15. Romania's Patent Office (OSIM): Nine Different Chiefs in Just Eight Years

    The Romanian State Office for Inventions and Trademarks (OSIM), being the equivalent of the U.S. Patent and Trademark Office (USPTO) in the sense that it covers both patents and trademarks, is a very flaky institution with no shortage of scandals; for our English-reading audiences we now have a summary of a decade’s worth of blunders and leadership changes



  16. The EPO’s Overseer/Overseen Collusion — Part XXIV: The Balkan League - Romania

    Romania’s patent office has been in flux this past decade, occasionally led by people with no relevant experience, but rather political connections (like EPO President António Campinos) and sometimes forged documents and fake degrees



  17. IRC Proceedings: Monday, October 25, 2021

    IRC logs for Monday, October 25, 2021



  18. [Meme] “Social Democracy” at the EPO

    Some comments on the current situation at the European Patent Office from Goran Gerasimovski, the new EPO Administrative Council delegate for North Macedonia and Social Democratic candidate for mayor of Centar (a municipality of Skopje)



  19. [Meme] António Campinos Visits the OSIM

    António Campinos visits OSIM Director-General Ionel Muscalu in February 2014



  20. [Meme] [Teaser] Meet the President

    Later today we shall see what Romania did for Battistelli



  21. Links 26/10/2021: Latte Dock 0.10.3 and Linux 5.15 RC7

    Links for the day



  22. Gemini Protocol's Originator: “I Continue to Care About This Project and I Care About the Community That Has Formed Around It.”

    'Solderpunk' is back from a long hiatus; this bodes well for Geminispace, which grew fast in spite of the conspicuous absence



  23. Bulgarian Like Bavarian Serfdom

    Bulgarian politics seem to have played a big role in selecting chiefs and delegates who backed Benoît Battistelli‘s unlawful proposals, which treat workers almost like slaves and ordinary citizens as disposable ‘collaterals’



  24. The EPO’s Overseer/Overseen Collusion — Part XXIII: The Balkan League - Bulgaria

    Today we examine the role of Bulgaria in Benoît Battistelli‘s liberticidal regime at the EPO (as well as under António Campinos, from 2018 to present) with particular focus on political machinations



  25. Links 25/10/2021: New Slackware64-current and a Look at Ubuntu Budgie

    Links for the day



  26. Links 25/10/2021: pg_statement_rollback 1.3 and Lots of Patent Catchup

    Links for the day



  27. Microsoft GitHub Exposé — Part III — A Story of Plagiarism and Likely Securities Fraud

    Today we tread slowly and take another step ahead, revealing the nature of only some among many problems that GitHub and Microsoft are hiding from the general public (to the point of spiking media reports)



  28. [Meme] [Teaser] Oligarchs-Controlled Patent Offices With Media Connections That Cover Up Corruption

    As we shall see later today, the ‘underworld’ in Bulgaria played a role or pulled the strings of politically-appointed administrators who guarded Benoît Battistelli‘s liberticidal regime at the EPO



  29. IRC Proceedings: Sunday, October 24, 2021

    IRC logs for Sunday, October 24, 2021



  30. Links 25/10/2021: EasyOS 3.1 and Bareflank 3.0

    Links for the day


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts