Former Lisbon Councilor Manuel Salgado Accused of Malfeasance in Riverside Licensing Scandal

The Public Prosecutor's Office (MP) has accused Manuel Salgado, former councilor in Lisbon, of malfeasance and violating urban planning rules for licensing a large riverside basement nearly a decade ago.

According to the MP's indictment, reported by Jornal de Notícias and accessed by Lusa, the Urban Planning councilor at the Lisbon City Council (CML) from 2007 to 2019 allegedly violated about 15 urban planning norms in collaboration with a former municipal director. This was done to authorize the expansion of two restaurants for the creation of SUD Lisboa, inaugurated in 2016 on Avenida de Brasília.

The former municipal leader was also accused of malfeasance and violating urban planning rules. Beyond licensing a large basement in a "highly flood-prone area," the MP highlights illegalities in extending the space's concession from 35 to 50 years and authorizing reduced parking.

The crimes, dated May 5, were allegedly committed after the original concessionaire of the two restaurants decided to transfer the concession to two companies within the Sana group. The concessionaire was then the Lisbon Tourism Association (ATL), and the transfer involved settling debts amounting to hundreds of thousands of euros.

"The projects approved by the defendants significantly increased the global existing area, benefiting the concessionaires and allowing for a basement far beyond what was necessary for alleged technical needs," stated the MP, noting this did not affect the "rent charged for years."

In 2016, the CML temporarily halted the now-suspicious works for four months. Additionally, a legal action to restore the space's legality is underway in the Lisbon Administrative Court.

The crime of malfeasance carries a penalty of two to eight years in prison, while violating urban planning rules is punishable by a fine or up to three years in prison.