Finance Ministry Demands Audit on Bank of Portugal's New Headquarters Amid Cost Controversy
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Finance Ministry Demands Audit on Bank of Portugal's New Headquarters Amid Cost Controversy

Economy
bankofportugal
finance
audit
economy
lisbon
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Summary:

  • Finance Ministry orders audit on Bank of Portugal's new 192 million euro headquarters amid cost overrun fears.

  • Total project cost could reach 235 million euros, exceeding initial estimates for structural works alone.

  • Consultants flagged licensing and environmental assessment concerns for the parking lot construction.

  • Bank of Portugal asserts compliance with all legal and regulatory standards, based on lowest expert valuation.

  • Audit announcement coincides with pending decision on new central bank governor, as Mário Centeno's term ends.

The Ministry of Finance has announced it will request an audit on the new headquarters building of the Bank of Portugal, following recent reports on the project's costs and procedures. The decision was communicated in a government statement this Tuesday.

Key details of the controversy revolve around the contract signed in May by the central bank, led by Mário Centeno, with Fidelidade for the purchase of a building on the site of the former Feira Popular in Entrecampos, Lisbon. The deal, valued at 191.99 million euros, is set for final transaction by the end of 2027. However, reports suggest the total cost could escalate to 235 million euros, as the initial figure only covers structural works.

Concerns raised include alerts from the Bank of Portugal's consultants regarding licensing issues and the potential need for an environmental impact assessment for the parking lot construction. The Inspectorate General of Finance (IGF), under the Ministry of Finance, will conduct the audit to ensure all procedures comply with legal and regulatory standards.

The Bank of Portugal has defended its actions, stating it has adhered to all applicable norms and that the purchase price was based on the lowest independent expert valuation obtained. The institution also emphasized that all technical procedures followed national and international best practices.

This controversy emerges just as the decision on who will lead the central bank for the next five years is pending. Mário Centeno's term ended last Sunday, with the government yet to announce his successor. The Prime Minister indicated that the decision would be revealed at Thursday's Council of Ministers meeting.

Source: Lusa

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