The triad of Peru, Canada and the United Kingdom has already displaced more than 8 million people from Santa Casa – Observer

It has been almost a footnote in the disastrous internationalization adventure of Santa Casa: for now, without great expectations, 8 million euros have been invested. The bill could increase because Santa Casa could be “forced” to convert debt into equity in a technology company in Canada controlled by a company based in the United Kingdom. It was in this last company, Ainigma, that Santa Casa entered in 2020, the operation of the Torito de Oro Lottery in Peru, attracted by a property on the other side of the Atlantic and acquired a 26% stake. A disastrous triangle.

Without reaching the scale and suspicions of Brazil’s operations (and even links to organized crime), projects in Peru also followed a pattern of failure in information and financial support, mainly due to lack of recognition by those considered. To grant it – in accordance with the laws of Santa Casa and the order of the then minister Ana Mendes Coutinho, any investment must be previously approved by the protector – additionally violated proper control on the part of those represented. Santa Casa. All this is according to the identified data BDO Forensic Audit of Santa Casa Global And the viewer had access.

The document indicates the funds that went out of Santa Casa for this 8.2 million euro project until July 2023 The main asset of this investment – ​​operating a lottery in Peru – was suspended following the regulatory decision.

To BDO’s audit, the project was not within the spirit of the goals defined in the directive of the Minister for International Expansion, Ana Mendes Coutinho. This is not only because it is outside the geography of the CPLP (Community of Portuguese Speaking Countries), but also because of the risk profile of Ainigma’s investments. Santa Casa’s financial stability, investments in emerging economies or Beginnings should be defined. In addition, the increased risk profile should be taken into account through a thorough analysis of trusted external agencies. Due diligence It didn’t happen.

The first steps were taken before the creation of the company that started the internationalization strategy Santa Casa Global (SCG).

In April 2020, this topic was discussed at the Santa Casa Group, which examined the possibility of buying 26% of its capital by Ainigma Holdings Limited. Having already obtained a license to operate a lottery in Peru, it aims to develop gaming programs in South America.

Ainigma was given the green light to continue communication with stakeholders. These contacts led to months later, in October 2020, Santa Casa Global (founded a month earlier) negotiating and approving a 26% acquisition, according to a letter sent after the Santa Casa board discussed the move in September. Graham Bruce, director of Ainigma, and Ricardo Gonçalves, the person in charge of Santa Casa Global, proposed the value of this participation. 5 million dollars.

According to SCG’s accounts, UK-registered Ainigma’s main asset is a controlling stake (69%) in Nexlot, a Peruvian company that operates the country’s lottery, another valuable asset in the process is Ainigma’s stake in AHS, a Canadian technology company capable of developing solutions to support games and lotteries. % share held and this will be an important part of the development of the Nexlot platform in Peru.

The payment terms were agreed – an initial installment of one million dollars was allocated to Nexlot in 2020, and the other four million was transferred to Ainigma in January 2021. The money from Santa Casa will be aimed at financing the launch of the lottery in Peru, which will be split between marketing and business setup costs. The investment valued the company at 19 million dollars (nearly 18 million euros).

BDO’s audit sought to understand the financial rationale of this investment, looking at Ainigma’s valuation based on a simple model considering the 2019 accounts and budget for 2020. Although the auditors considered the methodology appropriate, the auditors noted the sparse historical data on financial and accounting. And the uncertainty about the availability of an audit or certification of accounts highlights the difficulty of certifying Inigma’s valuation of $82 million (in 2026) over a six-year horizon and based on a simplified forecast financial model. Expected Revenues from the Peruvian Lottery It was this assessment that led to an investment of 5 million.

In addition to the unreliable estimate, there is no evidence of prior verification by the auditors. Background On shareholders, Due diligence Financial and legal, analysis of the gaming market in Peru and identification of risks.

This activity is part of the internationalization program in collaboration with Edmundo Martinho and the managers of Santa Casa Global, Francisco Pessoa e Costa and Ricardo Gonçalves.