Portugal Court of Auditors finds irregularities in local government contracts

The Portuguese Court of Auditors (Tribunal de Contas) has released two audit reports identifying legal violations and financial irregularities within local government entities. The findings suggest potential sanctions for local elected officials.

In the case of the União de Freguesias de Moscavide e Portela in Loures, the court found that a €200,000 credit agreement signed in June 2020 violated the Financial Regime of Local Authorities. The credit, intended for treasury and investment during the pandemic, was secured by a promissory note and not fully amortized until 2025, violating rules that require short-term credit to be repaid within the same fiscal year.

In the Municipality of Fornos de Algodres, the court analyzed service acquisitions made between 2018 and 2021, including electricity, rental transport, and fuel management. These contracts, totaling over €248,000 and executed via direct award, were found to violate the Statute of Local Elected Officials, which prohibits certain contracts with elected members of the Municipal Assembly.