The request was presented today at the Budget, Finance and Public Administration Committee after the centrist group attempted to have another request voted on to urgently hear from the current governor of the Bank of Portugal, Mário Centeno.
Since the first request was not put to a vote due to a lack of consensus among the parties on the committee, deputies Paulo Núncio and João Almeida submitted a second request for the Assembly of the Republic to access a series of documents regarding the transaction.
At issue is the contract the Bank of Portugal signed in May with Fidelidade to purchase a building on the grounds of the former Feira Popular in Entrecampos, Lisbon, which is yet to be built and designated for the institution’s future facilities, for 191.99 million euros.
The transaction came under public scrutiny after an online report published by Observador on Monday noted that the cost of the future facilities would exceed 192 million euros, as this amount only accounts for structural works, estimating the total cost could rise to 235 million euros.
The CDS wants the parliament to be informed of the memorandum of understanding signed between the Bank of Portugal and Fidelidade, as well as the “legal and technical reports, internal and external, received by the Bank of Portugal on the construction of the new headquarters,” the “promise of purchase and sale agreement which entailed a deposit of 57.5 million euros, information on the identity of the promoter, and all other internal and external opinions on this matter.”
In the first request, which was not voted on, the CDS argued the need to hear Centeno, citing knowledge that the building’s cost might “rise to 280 million euros, due to the omission of expenses on essential elements such as finishes, painting, final flooring, interior finishes, installation of elevators and platforms, and other interior infrastructures, furniture, and sanitary ware.”
They also stated that “due diligence reports pointed out 16 serious or very serious contingencies, including that the autonomization of the facilities wasn’t assured in Fidelidade’s plans, a requirement for security reasons, which necessitated a request for an alteration to the original project.”
For the CDS, “it is imperative to determine the risks associated with these contingencies and their potential costs, especially given the significant losses the Bank of Portugal recorded in 2023 (1.054 billion euros) and 2024 (1.142 billion euros).”
Also today, the office of the Minister of Finance, Joaquim Miranda Sarmento, announced in a press release that it would request an audit by the General Inspection of Finances (IGF) “due to reports about the new Bank of Portugal building.”
On Monday, in response to questions from Lusa, an official source of the Bank of Portugal stated that “full compliance with applicable legal and regulatory standards” was observed.
The central bank did not disclose the total estimated price of the building, noting only that the acquisition price “followed the lowest independent expert valuation requested by the Bank of Portugal.”
Regarding the warnings from technicians, the central bank stated that throughout the process “procedures and diligence of a technical nature were adopted following the best national and international practices, with rigorous control of the legality, financial configuration, and patrimonial operation.”
The controversy arises days before the decision on who will be the central bank’s governor for the next five years. Mário Centeno’s term ended on Sunday without the Government indicating a successor. The decision will be announced on Thursday, the day of the Council of Ministers meeting, as informed by the Prime Minister.
