Three and a half years after the arrest of the Deputy Mayor of Portimão, Luís Carito and the Portimão councillor Alcalador Jorge Campos on suspicion of corruption, the long-awaited list of charges has been published. Both Carito and Carito face a variety of charges, the maximum prison term for on charge, malfeasance in public office, is five years.
In a dispatch dated January 30th, the Public Prosecutor's Office states that a total of 21 defendants will stand trial for abuse of power and enriching themselves at the ratepayers’ expense.
The investgation has uncovered corruption between the councillors, who also were directors of council-owned companies, and contractors. The mayor at the time was the free-spending Socialist, Manuel da Luz
In addtion to any prison sentence, the State wants €4.6 million in recompense from the defendants as this is the estimated total the council lost due to corruption at the very heart of the system.
Investigators looked into various contracts issued by council-owned companies between 2009 and 2013 at a period when two of the defendants were Portimão councillors and also were on the board of municipal companies Portimão Urbis and Portimão Turis.
The defendants are accused of abuse of power and economic participation in business, "related to the refurbishment of the Portimão Stadium, advertising in the Portimão Stadium and the so-called ‘Cinema City.’
According to the indictment, the dealings surrounding these contracts were conducted "in violation of the rules of sound management, in breach of the principles and administrative rules in force" at the time of the events. "It was pointed out that their dealings were aimed at enriching, in particular, a mayor and the various private contractors who took part in the work authorised by these municipal companies," the indictment states.
Their conduct, according to the document, caused "a high loss to the State" with a total value estimated at €4.6 million and compensation is also sought on behalf of the Portuguese State in this amount.
What about Manuel da Luz?
As for the former mayor of Portimão, Manuel da Luz and the president of the local football club, Fernando Rocha, they were investigated but the Public Prosecutor's Office has shelved any legal action against them.
Manuel da Luz, mayor of Portimão between 2000 and 2013 and chairman of the board of directors of Portimão Urbis, was accused of the whole range of crimes but managed to convinvce the prosecutors that he delegated everything to do with finance, local businesses and tourism, to his deputy, Luís Carito.
"However, although the accused Manuel da Luz does not incur criminal liability, this does not exempt him from the liability that can be attributed to him and from any financial liabilities that may be levied on him," the accusation reads.
According to the prosecutor, as mayor and head of the municipality's management "it was up to him to ensure the sound management" of public funds.
Manuel da Luz is guility of no more than gross incompetence, but this is no great revelation.
As for the president of Portimonense, there were suspicions that Fernando Rocha had committed the crimes of influence peddling - in the contract entered into between Media 360 and Portimonense Football Club that saw money transferred from Portimão Urbis to his club’s account.
The prosecutor understands that Rocha "did not misappropriate the amount transferred to his bank account by Portimão Urbis."
The Cinema City project was a scam waiting to happen:
(From algarvedailynews.com, June 21st, 2013 'Portimão councillor arrests, what’s it all about?')
"The Cinema City project had a budget of €3 billion and never left the drawing board. Portimão council invested €700,000 in 'research and consulting,' despite being the most indebted council in the country and almost totally lacking in commercial expertise.
Travel to Los Angeles to meet with stakeholders and meetings in India involving minister Paulo Portas to win investment... the picture is emerging and there is of course more to come. What seemed at first to be a case of a shell company invoicing for services not rendered could turn into a major fraud.
Picture Algarve modestly promised to transform Portugal into the ‘cradle’ of world cinema and Portimão council and the Algarve Film Commission submitted the project in May 2009 which provided for the creation of a film making complex and more bizarrely the construction of a theme park.
Now we move to the Autodrome where the film industry complex was planned using a 150 hectare plot next to the Autódromo Internacional do Algarve. The project management claimed to have recruited the actor Joaquim de Almeida as one of the media faces to promote the project.
Back then Luís Carito, the president of Portimão Turis, later integrated into Portimão Urbis, revealed that of the initial investment of €750 million, €550 million was to build the amusement park, and the remaining €200 million was for the production of the film industry complex.
The amusement park business was linked by Carito with the American company Universal Studios, and was to be on the theme of ‘cars and the history of cinema.’ It is not yet known if Universal Studios bosses have ever heard of Carito, Portimão or the Algarve, but we have asked.
The proposed film industry complex was to include the construction of eleven film studios, two of which were to be completed by late 2010, which would lure film producers and directors to the Algarve.
In 2010 the project led by Picture Portugal’s Artur Curado and Luis Marreiros, was to be managed in partnership with Portimão Urbis which would hold a 20% stake in the company.
In March 2010, Luís Carito, then president of Portimão Urbis, admitted that planning had slipped due to delay in completion of the economic study, but assured the world that the project would continue.
Apparently investors were lining up to back this film complex at the southwestern tip of Europe. CBS-Paramount, Universal, Fox, Sony and Warner Brothers were allegedly all set to join Portuguese investors.
US based ambassadors of the enterprise were the actor Joaquim de Almeida, and Carlos Mattos a Portuguese businessman and winner of two US Academy Awards. Their task was to convince the US big hitters to invest a substantial part of the €25 million needed to build the first phase of the studio complex.
There was even talk in 2009 of re-filming the Steve McQueen classic "Le Mans" with Brad Pitt, Al Pacino and Penelope Cruz. This however required USD52 million from Picture Portugal by the end of 2009.
An anonymous tip-off in 2011 led police to start a detailed investigation into the management and cash trail involved in this whole ill-fated enterprise, culminating in this week’s arrests or many of the key players."
The accused are, Paulo Pereira, José Agostinho, João Lei, Carlos Barros, Luís Marreiros, Artur Curado, Jorge Campos, Luís Carito along with the following companies:
SIMPLIRADAR, LDA
IDENTIK WORLD, SA
CENTRAL PICTURE SGPS, SA
PRODPICTURE, SA
SPRING CLOCK, LDA
CINEPICTURE PORTUGAL STUDIOS SA
GREEN TRACE ARCHITECTURE, LDA
LEI AGÊNCIA DE DOCUMENTAÇÃO, LDA
CELEUMA MULTIMEDIA, LDA
MR. DO IT, LDA:
ASSOCIAÇÃO ALGARVE FILM COMISSION
MEDIA 360 LDA
http://www.algarvedailynews.com/cases/autodrome/9611-portimao-councillor-arrests-what-s-it-all-about
See also: Portimão corruption investigation spreads to football stadium
Comments
Portugal is a beautiful country, not least the less developed parts of the Algarve. It is also a great place to live if one has a strong constitution. Corruption is rife in all countries, but, as a Portuguese acquaintance once said, 'here, we have the sun, the sea, the oranges, the wine, what more could one wish for?' There are many far worse cesspits. Caveat emptor!
The good thing, Florabee, is that these examples of corruption are now in the open and being prosecuted. Portugal is an increasingly good place to live, unless, like me, you have been waiting 38 months for a court case to even be scheduled....