Porto, Portugal, Sept. 3, 2024 (Lusa) - Portugal's minister of infrastructures, who was secretary of state when TAP was privatised in 2015, said on Tuesday, after the Inspectorate General of Finance's audit report became known, that the legitimacy of his current functions belongs to the prime minister.
‘The legitimacy of a member of the government always rests with the prime minister. Therefore, from the day I took office, my place belongs to the prime minister, and therefore the legitimacy I have,’ Miguel Pinto Luz told journalists in Porto today.
The minister for housing and infrastructures was speaking to journalists on arrival at a meeting at the headquarters of the Metropolitan Area of Porto (AMP), one day after the Inspectorate General of Finance's (IGF) audit report on TAP became known, which addresses the 2015 privatisation process, among other issues.
Miguel Pinto Luz was secretary of state for Infrastructure, Transport and Communications in the second government of Pedro Passos Coelho (PSD/CDS-PP), which lasted just 27 days in 2015 and finalised the TAP privatisation process, but was later overturned by a motion of censure from the left-wing parliamentary majority.
‘I will continue to carry out my duties with the utmost competence, with the utmost seriousness and with the utmost commitment to the Portuguese people,’ Miguel Pinto Luz guaranteed today, after being asked about his legitimacy to hold the position and lead a new privatisation of TAP.
The government has already sent the IGF report on TAP to the public prosecutor's office and to Parliament after receiving it last week, the minister also said today.
‘There's nothing to hide, everything has been transparent, that's what this government is striving for. It strives for transparency, for total openness in the proceedings. That's what we've done and we'll wait for the results,’ he said.
The IGF report on TAP states that Atlantic Gateway, a consortium of David Neeleman and Humberto Pedrosa, acquired 61% of the capital of TAP, SGPS, ‘committing to capitalise it through supplementary capital contributions, of which US$226.75 million were made through the partner DGN Corporation (DGN) with funds obtained from Airbus’.
That amount of capitalisation, it adds, ‘coincides with the amount of the penalty (US$226.75 million) incurred by TAP, SA, in the event of non-compliance with the agreements for the acquisition of the 53 aircraft (A320 and A330), which shows a possible causal relationship between the acquisition of the shares and the capitalisation of TAP, SGPS and the contracts signed between TAP, SA and Airbus.
The IGF suggests sending the report to the Public Prosecutor's Office, especially in view of the conclusions related to TAP's privatisation process and its relationship with the contracts for the purchase of 53 aircraft from Airbus in 2015, as well as the remuneration of the members of the Board of Directors.
On the latter subject, the IGF concludes that the "available data" leads to the conclusion "that the payment of remuneration to the directors in question [Humberto Pedrosa, David Pedrosa and David Neeleman] was made through a simulated service contract (since apparently the purpose was not the same as that for which it was signed), presenting itself only as instrumental to the intended effect".
According to the report, this procedure ‘appears to be irregular in the payment/receipt of remuneration to the members of the Board of Directors, who thus avoided responsibility for personal income tax and social security contributions’.
JE/AYLS // AYLS
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