Deportivo President Augusto Cesar Lendoiro has been blamed as primarily responsible for the club’s run into ruin.
Depor entered bankruptcy proceedings in January with claimed debts of €93m, which the administrators later reported was a misleading sum and way below the actual figure of around €146m.
La Voz de Galicia report that the administrators have now handed their report to the local judge that assesses the club’s financial situation and have placed the blame firmly on Lendoiro and his board of directors.
Confirming actual debt to be at €156m, they have accused Lendoiro and the board of maintaining “a management oblivious to reality, assuming expenses and investments in many aspects…for amounts quite remote from the economic possibilities of the club.”
The administrators also say that the club’s accounts have been liable for entering into bankruptcy from ‘at least 2006’.
“Blaming the tax authorities or other creditors for the legitimate exercise of legal powers, is ludicrous and seeks to avoid recognition of the failure of a company policy that has been reckless and wrong,” the report is quoted as saying.
Lendoiro is also listed as having ‘perceived his [one per cent of the annual budget] salary improperly’. The administrators had previously asked for Lendoiro to be removed from his position, but had this rejected by the court judge.