A TAP was once again subject to searches on Tuesday, this time for alleged crimes related to its 2015 privatization. These operations were conducted by the Judiciary Police (PJ), in an investigation led by the Central Department of Investigation and Penal Action (DCIAP), which led the Public Prosecutor’s Office to charge four defendants, two individuals and two companies.
1 – What is known?
TAP, Grupo Barraqueiro, and Parpública were subjects of PJ searches, with various media outlets pointing to alleged crimes in the 2015 privatization, involving 61% of the airline’s capital sold to the Atlantic Gateway consortium in 2015.
The Attorney General’s Office confirmed, in September last year, receiving the report from the General Inspectorate of Finance (IGF) regarding TAP’s privatization in 2015 and sent the document to the DCIAP.
The inquiry was opened in February 2023 following a report filed by Fernando Medina and Pedro Nuno Santos, then ministers of Finance and Infrastructure and Housing (PS), respectively.
In mid-October 2022, Pedro Nuno Santos revealed that TAP’s management had requested an audit for suspecting it was paying more for aircraft than competitors, and the government forwarded the findings to the Public Prosecutor’s Office.
2 – Was this issue previously discussed in the Parliamentary Inquiry Commission?
One of the most discussed topics in the 2023 Parliamentary Inquiry Commission (CPI) on Political Oversight of TAP’s Management was the so-called Airbus funds. This deal involved DGN, led by David Neeleman, with the aircraft manufacturer, resulting in canceling a previous lease contract for 12 A350 aircraft and establishing a new deal to purchase 53 aircraft of another range.
Within this agreement, Airbus provided capital credits to DGN totaling 226.75 million dollars (195.5 million euros at current exchange rates) to be channeled to TAP via Atlantic Gateway.
Throughout the CPI hearings, several deputies questioned deponents about their knowledge of the operation, considering TAP’s capitalization in 2015 was funded with the company’s own resources.
The Atlantic Gateway consortium—composed of shareholders David Neeleman and Portuguese businessman Humberto Pedrosa—won TAP’s privatization, completed during the PSD/CDS-PP government’s final phase. The operation was partially reversed in 2015 by António Costa’s (PS) executive.
At that time, TAP’s political oversight was the responsibility of the current Minister of Infrastructure and Housing, Miguel Pinto Luz, who was then Secretary of State for Infrastructure, Transport, and Communications.
3 – What does the current government say, considering Miguel Pinto Luz is responsible for the TAP portfolio?
Following Tuesday’s developments, the Ministry of Infrastructure and Housing stated it views the Judiciary Police’s actions regarding TAP’s 2015 privatization “normally” and assured full cooperation with authorities.
The government also noted that the company’s privatization process completed in 2015, when Miguel Pinto Luz was Secretary of State for Infrastructure, Transport, and Communications, “was scrutinized by the Court of Auditors and the Assembly of the Republic through a Parliamentary Inquiry Commission,” considering this exercise “essential in a Rule of Law” and viewing it “as an essential element of a healthy and modern democracy”.
The Ministry of Infrastructure and Housing highlighted that it “is fully concentrated on the current process of privatizing TAP, with the deadline for submitting Intent to Purchase Proposals ending on November 22”.
4 – How did TAP react?
For its part, TAP refused to comment on legal proceedings and guaranteed cooperation with authorities in all and any investigations following the Judiciary Police searches in the airline, for suspected crimes in the 2015 privatization.
“TAP does not comment on legal proceedings and always collaborates with authorities in all and any investigations,” an official source from the airline responded.
5 – What does the President of the Republic say?
The President of the Republic also reacted, expressing hope that the investigation which led to the searches at TAP will be thorough but swift, voicing concerns about the Portuguese state’s position in the partial reprivatization process of the airline.
“It is advantageous for TAP’s privatization in general that everything to be investigated is done thoroughly but also quickly,” Marcelo Rebelo de Sousa stated, responding to journalists at the Nova University of Lisbon’s Carcavelos Campus, in the municipality of Cascais.
The head of state noted that “an operation like TAP’s privatization involves candidacies, involves interest from various candidates,” and in that context, “the less doubt there is about what happened, especially long ago, the better it is for Portugal’s position”.
“When it comes to TAP, what matters is Portugal’s position,” the President of the Republic argued.
