Shoe, Meet Other Foot

Europe’s Parmalat scandal is spreading:

As much as ten billion euros could be unaccounted for from the giant Italian food group. Prosecutors in Parma think the company’s former chief financial officer Fausto Tonna can unravel some of the mystery.

He has been subjected to hours of questioning this week on the web of offshore companies which investigators suspect was used to cream off cash and provide a smoke screen to divert regulators.

Holland is the latest country to launch an investigation.

Under scrutiny are three Parmalat subsidiarys in Rotterdam which issued most of the seven billion euros worth of bonds that are still outstanding.

Brazil’s stock market regulator is also reviewing the earnings statements of the company’s subsidiary there looking for irregularities.

Hey, Europe — remember how we let Enron go bust and filed charges against their CEO? It’s called “accountability.” Try it some time.