Bank of Portugal's New Headquarters Deal Under Criminal Investigation - What You Need to Know

Following revelations by Observador, the Bank of Portugal's controversial deal for its new headquarters is now under scrutiny. Minister Joaquim Miranda Sarmento has ordered an audit by the General Finance Inspectorate, and now, the Public Prosecutor's Office may launch a criminal investigation into the deal orchestrated under Mário Centeno's leadership.

Paulo Saragoça da Matta, a renowned Portuguese criminal lawyer, asserts that the Observador's investigation provides substantiated suspicions warranting a criminal inquiry. He highlights potential abuse of power and economic participation in business as focal points for the investigation.

Key Findings from the Investigation:

• The Bank of Portugal signed a €191.99 million promise contract for two buildings, despite 16 high-risk contingencies.
• The final cost, including fittings for over 29,000 m², could balloon to €235-280 million, with €57.5 million already paid to the Fidelidade Group.
• Entrecampos location was previously rejected for failing to meet basic security requirements, yet was later chosen under Centeno's administration.
• Five independent valuation reports suggested a lower price of around €156 million, contradicting the Bank's claim of choosing the lowest valuation.

The full 90-page contract, obtained by Observador, reveals that Fidelidade imposed additional costs excluded from the base price, potentially increasing the total expenditure. Moreover, risks related to urban planning approvals are shared between the Bank and Fidelidade, raising further questions about the deal's integrity.