Two former mayors of Silves Council, Isabel Soares and Rogério Pinto, have lost their appeals against their conviction in the Vigia D’Ouro case, whose detrimental financial effects are continue to hamper municipal finances.
In October, 2018, the Court of Auditors upheld an earlier judgement that the former mayors, Isabel Soares and Rogério Pinto have to pay the sums of €228,399 and €30,624, plus interest, to the Council Treasury as they had been "the perpetrators of a financial infraction of a reintegrative nature."
This final judgment was issued by Court of Auditors following the appeal by Isabel Soares and Rogério Pinto against their convictions on January 17, 2018.
See: 'Viga d'Ouro case - former Silves mayors must repay €267,000'
The Viga D'Ouro case dates back to December 2004, "but whose repercussions still affect the current financial management of the Municipality of Silves, since capital debts and default interest have been paid in excess of €5 million from mid-2014 and will continue until October 2020, the date of payment of the last installment."
According to the Court of Auditors, Isabel Soares blocked payments to a group of banks (BES, BCP and CGD) that had factored invoices offered by Viga D'Ouro Construções Lda.
The Council then refused to pay the invoices, now owned by the banks. This led to several legal actions by the banks that culminated in the obligation of the municipality to make the payment of the capital owed, plus heavy interest arrears, which resulted in considerable damage to the Council’s Treasury, a total cost of €668,000.
The Court held that Isabel Soares had acted in an ethical and personal attitude marred by indifference, that she has acted unlawfully and was guilty, since she had not complied with the obligation to settle the bank debts she had contracted on behalf of Silves Council. By suspending those payments, "this had led to the municipality taking on financial charges higher than those initially due, in violation of the rules to which it must adhere."
As for mayor number two, Rogério Pinto, the Court observed that, after becoming mayor when Soares sloped off, mid-term, to run Águas do Algarve, he could have resolved the situation with the banks, thus saving money for the Council, but did absolutely nothing, which is why his conduct also was criticised and considered unlawful.
The Court of Auditors concluded that "Isabel Soares and Rogério Pinto are responsible for the practice of financial infraction, which resulted in damages to the Council and now must reimburse the value of the damages they caused."
Soares had appealed to the Court to exonerate her of any financial responsibility. This was refused in view of the seriousness of her unlawful behaviour and the amount of money involved.
Both Soares and Pinto did get a reduction in the amount payable, as they had not been in trouble before.
Originally, they had been ordered to pay €668,824, so the final demand of €259,023 represents a huge discount and leaves the Council short of €419,801.
According to the judges who signed their devastating report in June, 2016, "were it not for the intervention and negotiation efforts of the current municipal executive with the banks, the losses for Silves Council would be much higher and consequently Isabel Soares and Rogério Pinto would have to return far higher amounts to those determined by the Court."
Isabel Soares and Rogério Pinto
