Ponta Delgada, Portugal, June 9, 2025 (Lusa) - The commission of inquiry into the fire at the hospital in Ponta Delgada, in the Azores, concluded that the construction of the modular hospital raises doubts about its legality and financial regularity, and that technical or economic-financial studies did not support the decision.
"The contractual processes underlying the design, construction, equipping and operation of the modular hospital raise doubts as to their legality and financial regularity," reads the conclusions of the final version of the inquiry committee's report, to which Lusa had access, which still has to be voted on by MPs.
The Hospital do Divino Espírito Santo (HDES) in Ponta Delgada, the largest in the Azores, was affected by a fire on 4 May 2024, which forced the transfer of patients to other health facilities in the region and the country.
Following the fire, it was decided to set up a modular hospital next to the building to ensure that the hospital could continue to provide healthcare until it was refurbished.
In February 2025, an inquiry committee was established in the Legislative Assembly of the Azores, proposed by the PSD, to investigate the circumstances, causes, responsibilities, and consequences of the fire, as well as assessing the subsequent institutional response.
In its report, the parliamentary committee of inquiry concluded that "it was not possible to confirm full compliance with the legal and administrative procedures required for the award of the modular hospital contract, given the lack of adequate documentary evidence and the absence of specific statements by those directly responsible for the contractual process".
"None of those responsible for health, regional public administration or the contracting company MBW provided details during the hearings on the form of contract adopted, the existence of prior explanatory reports, the issuance of legal opinions, nor did they receive any copies of contracts, award notices or documents proving the legal framework of the procedure," the report reads.
Even before the conclusions of the inquiry committee were known, on Thursday, the Azorean parliament unanimously approved a proposal by Chega to request an audit by the Court of Auditors of "contracts and expenses related to the design, construction, equipping and operation of the modular hospital".
According to the report's conclusions, "the initiative to contact the supplier (MBW) of the modular hospital came from the regional secretary for Health and Social Security and took place on 5 May [one day after the fire], with the physical implementation of this infrastructure, at the design stage, beginning on 6 May 2024". However "the direct award was formalised on 13 August 2024".
"The inquiry committee had access to a statement of assurance issued by the Regional Secretariat for Health and Social Security, dated 26 June 2024, which promised to “initiate a direct award procedure”, consulting only one entity, namely MBW, confirming that the work had begun before the formalisation of the award contract," it adds.
The report also concludes that technical and economic-financial studies did not support the Azorean regional government's choice of a modular structure, nor was it the result of a comparative assessment with a possible urgent rehabilitation of the main hospital building."
"In the course of the inquiry committee's investigations, it was found that there were no prior in-depth studies, consolidated strategic plans or independent technical opinions that provided a structured basis for the decision to proceed with the construction of the modular hospital following the fire at the HDES. The decision was taken in an emergency context, based on the need for a rapid response to the disruption of essential hospital services," the document said.
The conclusions indicate that "the modular structure has limitations in terms of its capacity for hospitalisation, the size of the emergency room and waiting room, air conditioning deficiencies, lack of compartmentalisation and reduced rest areas and toilets".
Initially budgeted at €12 million and with a completion deadline of 90 days, the modular hospital "ended up representing a total cost of approximately €40 million (including preparatory work and the purchase of equipment)" and took "more than 180 days to complete," the conclusions state.
Although the modular structure was built "on the assumption that it was the only viable alternative to ensure the continuity of healthcare provision", the report states that "experts and technicians recognised that it would have been possible to restore and rehabilitate the main HDES building by the end of August 2024, in the conditions before the fire and some aspects even better, particularly in terms of technical and operational conditions in the operating theatres".
It adds, however, that the hospital's clinical management "expressed opposition to the full resumption of healthcare at the HDES, considering that the conditions for this to take place in complete safety were not met".
The commission notes that "the entry into operation of the modular hospital has made it possible to concentrate within the HDES perimeter a range of services that were previously scattered across various health units". Still, it adds that "it was designed as a temporary and complementary solution, without being able to restore the full capacity of the HDES".
The report is to be sent to the Court of Auditors and the Public Prosecutor's Office for the appropriate legal action.
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