Calisto Tanzi - disgraced businessman

Man at the centre of the Parmalat scandal 

Calisto Tanzi took over his father's grocery
store when he was 22 years old

Calisto Tanzi, the business tycoon jailed for 18 years following the biggest corporate disaster in Italian history, was born on this day in 1938 in Collecchio, a town in Emilia-Romagna, about 13km (8 miles) from the city of Parma.

Tanzi was founder and chief executive of Parmalat, the enormous global food conglomerate that collapsed in 2003 with a staggering €14 billion worth of debt.

Subsequent criminal investigations found that Tanzi, who built the Parmalat empire from the grocery store his father had run in Collecchio, had been misappropriating funds and engaging in fraudulent practices for as much as a decade in order to maintain an appearance of success and prosperity when in fact the business was failing catastrophically.

Of all those hurt by the collapse, the biggest victims were more than 135,000 small investors who had bought bonds in the company, some of them trusting Parmalat with their entire life savings.

Between 2008 and 2010, Tanzi was found guilty by four different courts of fraud, of the fraudulent bankruptcy of Parmalat, the fraudulent bankruptcy of Parmatour, a travel industry subsidiary, and of false accounting at Parma, the football club he owned.

The Parmalat logo became familiar in almost every
food store and supermarket across Italy and elsewhere

There were several appeals, during which Tanzi, who had been arrested and held in custody immediately following the collapse, was able to continue living on his estate. However, he finally began his sentences in 2011.

The Parmalat story was portrayed as fairy tale of modern Italy. Calisto Tanzi was a 22-year-old university student when his father, Melchiorre, died suddenly in 1961. As the oldest son and out of a sense of duty to the family, Calisto gave up his studies in order to take over his father’s shop.

Family-run grocers were and still are a fixture in Italian high streets. Calisto could have had a comfortable life running such an essential business - but he had bigger ideas.

Parmalat was a major sponsor of sport, including football
and Formula One motor racing

Anticipating that there was a market in Italy for selling milk that could be kept fresh for an extended period, he acquired premises on the outskirts of Parma in which to set up a pasteurisation plant. He bought packaging from the burgeoning Swedish company, Tetra Pak, sterilized the milk by heating it to extremely high temperatures and sealed it in Tetra Pak's cartons. He came up with the name Parmalat to display on the cartons, turning a basic agricultural product into a unique brand.

The venture was a hue success and soon he diversified into pasta sauce, biscuits, yoghurts, fruit juice and ice cream. White lorries carrying the company’s simple petal logo became a familiar sight on Italy's roads.

Parmalat grew to become the entrepreneurial symbol of Parma, and Tanzi the city's most generous benefactor.  The Tanzi family began to be seen as the Agnellis of Parma and Tanzi was determined to extend his largesse.

The court room at Tanzi's trial, in which he was found
guilty of various frauds and jailed for 18 years

He bought the city’s struggling football team and turned them not only into a force in Serie A but in Europe too.  Parmalat also invested heavily in Formula One, including backing the Austrian driver Niki Lauda.

Tanzi promoted the city's Verdi festival, in honour of the region's most famous composer, and paid for the uncovering and restoration of frescoes in the city's cathedral.

At its peak, Parmalat had more than 5,000 employees in Italy, and more than 30,000 in the rest of the world.  Inside the company, however, things were not as they seemed.

Profits were hit hard by the collapse of Latin American economies during the 1990s, and the problems caused by that were compounded by the threatened bankruptcy of the family travel company, Parmatour. 

But Tanzi tried to pretend all was well. Secretly, he began to remove cash - €500 million by his own admission - from Parmalat to prop up Parmatour. But that was only the start.

Tanzi desperately wanted to maintain the appearance that his
business was in good shape when it was actually failing

In the years that followed, in his determination to preserve the illusion of prosperity and not lose face, Tanzi became increasingly reckless, apparently oblivious to the consequences that lies, falsification, forgery and fraud would inevitably bring. Investigators found that he had ordered his accountants to create a complex web of subsidiary companies based in offshore tax havens, which would appear to be holding billions of euros in credits from other Parmalat markets.

It all came crashing down eventually over a sum of just €150 million needed to redeem bonds. One of the company's banks advised them to draw on the €3.95 billion that one subsidiary supposedly had sitting in a Bank of America account in the Cayman Islands. It soon became clear the account did not exist.

In late December 2003, Parmalat filed for bankruptcy protection. The US Securities and Exchange Commission then sued Parmalat, alleging it had wrongfully induced American investors to buy more than $1.5 billion worth of securities. Eventually, Tanzi and others were arrested.

As well as his prison sentence, Tanzi suffered the loss of many of his considerable collection of works of art as paintings by by Picasso, Monet, Degas, Van Gogh and others, worth more than €100 million, were seized by police, despite the efforts of friends to hide them, in order to pay back some of the company's losses. He was also stripped of the honours previously bestowed on him by the Italian government.

The headquarters of Parmalat is still in Collecchio

Travel tip:

There is evidence of a settlement in the area of Collecchio since the Paleolithic Age, although it was not until 1796 that it was given the status of a comune.  Its history in the food industry began at the end of the 19th century as a centre for canning and meat products. It became an important centre in the Italian charcuterie industry as well as for dairy products including Parmesan cheese. It is still the headquarters of Parmalat, which was restructured in 2005 and is now a subsidiary of the French group Lactalis. In April 1945, the town was famously liberated from Nazi forces by the Brazilian Expeditionary Force in the Battle of Collecchio.

The church of San Giovanni Evangelista
in Parma with its beautiful facade

Travel tip:

Parma is an historic city in the Emilia-Romagna region, famous for its Prosciutto di Parma ham and Parmigiano Reggiano cheese, the true ‘parmesan’. In 1545 the city was given as a duchy to the illegitimate son of Pope Paul III, whose descendants ruled Parma until 1731. The composer, Verdi, was born near Parma at Bussetto and the city has a prestigious opera house, the Teatro Regio. Among the main sights is the 11th century Romanesque cathedral and adjoining baptistery, the church of San Giovanni Evangelista, which has a beautiful late Mannerist facade and bell tower, and the Palazzo della Pilotta, which houses the Academy of Fine Arts, the Palatine Library, the National Gallery and an archaeological museum.

More reading:

Nevio Scala - the football manager who brought success to Parma

The mysterious death of Enrico Mattei

Camillo Olivetti - founder of Italy's first typewriter factory

Also on this day:

1494: The death of Giovanni Pico della Mirandola

1503: The birth of the Florentine master painter Bronzino

1878: The attempted murder of Umberto I


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Nevio Scala - footballer and coach

Led Parma to success in golden era of 1990s

Nevio Scala led Parma to unprecedented
success after taking charge in 1989

Nevio Scala, a European Cup winner with AC Milan as a player and the most successful coach of Parma's golden era in the 1990s, was born on this day in 1947 in Lozzo Atestino, a small town in the Euganean Hills, just south of Padua.

A midfielder who also played for Roma, Vicenza and Internazionale at the top level of Italian football, Scala was never picked for his country but won a Serie A title and a European Cup-Winners' Cup in addition to the European Cup with AC Milan.

But his achievements with Parma as coach arguably exceeded even that, given that they were a small provincial club that had never played in Serie A when Scala was appointed.

He had given notice of his ability by almost taking the tiny Calabrian club Reggina to Serie A in 1989 only a year after winning promotion from Serie C, and needed only one season to take Parma to the top flight for the first time.

With the massive financial backing of Calisto Tanzi, the founder and chairman of the local dairy giants Parmalat, Scala then led Parma into a period of sustained success no one could have predicted.

With a galaxy of top international players at his disposal, including Tomas Brolin, Antonio Benarrivo, Gianfranco Zola and Faustino Asprilla, Scala coached his side to play a swashbuckling brand of football that took the established big hitters by surprise.

Gianfranco Zola, one of the stars of the
Parma team of the 1990s

Between 1991 and 1995, Parma won the Coppa Italia, the European Cup-Winners' Cup, the European Super Cup and the UEFA Cup and the team Scala handed over when he was replaced by Carlo Ancelotti in 1996 went on to finish runners-up in Serie A in 1997.

He went on to enjoy more success as a coach, but outside Italy, winning trophies in Germany with Borussia Dortmund, in the Ukraine with Shakhtar Donetsk and in Russia with Spartak Moscow.

Scala returned to live in his home town of Lozzo Atestino, where he served on the local council and ran unsuccessfully as mayor in 2007.

He moved into football punditry on radio and TV with state broadcaster Rai, making regular appearances on the Sunday evening TV review of the Serie A programme, Domenica Sportiva. 

He was linked with a return to coaching, first at the Scottish club Motherwell and later with AS. Roma.  When he did return to football in 2015 it was as president of Parma, although a very different Parma from the one he coached.

Since he left the Stadio Ennio Tardini, Parma has twice been made bankrupt, first in 2004 in the wake of the catastrophic collapse of Calisto Tanzi's Parmalat empire, which saw the business tycoon jailed for fraud and criminal association, and again in 2015, when the relaunched club folded with debts of €218 million.

In July 2015, with the support of pasta makers Barilla, the club made another fresh start as SSD Parma Calcio 1913, taking its name from the year of foundation of the original club and was granted entry to Serie D.

Scala was appointed president and former player Luigi Apolloni as head coach.  The new club sold more than 9,000 season tickets, more than doubling the Serie D record and won promotion at the first attempt into professional football league Lega Pro.

The 13th century Valbona Castle at Lozzo Atestino

Travel tip:

The Colli Euganei, to give the Euganean Hills their Italian name, was the first regional park to be established in the Veneto when it was mapped out in 1989, enclosing 15 towns, including Lozzo Atestino, and the 81 hills - rising to between 300 and 600m - that make up the area, a volcanic outcrop in an otherwise flat terrain. Lozzo Atestino is situated at the foot of Monte Lozzo.  Of particular interest to visitors is the 13th century Valbona Castle, an imposing fort that now houses a restaurant.


Travel tip:

Despite the damage done to its economy by the Parmalat collapse, one of the biggest financial scandals in Italian history, Parma remains an elegant city with the air of prosperity common to much of Emilia-Romagna, famous for Prosciutto di Parma and Parmigiano Reggiano cheese, and boasting some outstanding architecture, including the 11th century Romanesque cathedral and the octagonal 12th century baptistery that adjoins it.

More reading:

Antonio Conte - former Juventus coach now in charge at Chelsea

The birth of Italy's first football club

The story of Italy's World Cup winning coach Marcello Lippi

Also on this day:

1710: The death of composer Bernardo Pasquini


(Picture of Nevio Scala by Anastasiya Fedorenko; Gianfranco Zola by Hilton1949; Valbona Castle by Milazzi; all via Wikimedia Commons)

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