A Lisbon judge ordered the chief executive of EDP-Energias de Portugal, Antonio Mexia, to be suspended along with the CEO of subsidiary EDP Renovaveis as part of a corruption investigation, a source familiar with the decision said.
The ruling was reported by news website ECO earlier this Monday. Portugal’s public prosecutor indicted Mexia and EDP Renovaveis CEO Joao Manso Neto three years ago on suspicion of corruption in a case that involved former Portuguese Economy Minister Manuel Pinho in 2007. EDP, the two executives and Pinho have always denied any wrongdoing.
Court officials were not immediately available for comment, while EDP declined to comment when contacted press. ECO and other publications, including the Expresso weekly’s website, said the decision to suspend the executives, with immediate effect, was taken by Judge Carlos Alexandre, who is separately presiding over another corruption case involving former Prime Minister Jose Socrates.
Market regulator CMVM suspended trading in shares of both companies and in separate statements said it was waiting for them to disclose relevant information to the market. EDP shares fell 2.4% in afternoon trading while the broader market in Lisbon was up 0.09%.
The public prosecutor suspects that Pinho personally benefited when he approved a scheme to compensate EDP for the early end of fixed multi-annual Power Purchase Agreements (PPA), and a 25-year extension of 27 dam concessions without public tender.
The public prosecutor has said EDP subsequently sponsored a renewable energy course at a major U.S. university, taught by Pinho, as a reward. In a court document seen by press, the two executives rejected the prosecutor’s claims, calling them “fictional narrative” and said the proposed suspension was “illegal” as a manager can only be dismissed by shareholders.
Comments
How ordinary Portuguese can afford electricity I really don't know.
The money is alleged to be in payment for Pinho's ministerial help in getting the CMEC scheme approved to the benefit of EDP and was paid through the BES banking network into an offshore account that Pinho controlled.
This figure includes €14,963.94 a month during the period in which Pinho was Minister of Economy in the José Sócrates government, a period when he was prevented from receiving salary from sources other than his ministerial income.'
of this money should be allowed to trickle down to to the workers on the ground and the other €1million should be divided between a management team.
I wonder what the minister for Energy was doing in 2007, it was the minister's job to ensure that full compliance with the law be adhered to, "The buck stops here".
Hope they're sharpening that guillotine ... there could be a whiff of Revolution in the air, if this lot get away with robbing the nation in this way.