Armando Vara, a former minister in the socialist government of António Guterres and friend of José Sócrates, has been arrested at his home in Cascais as part of Operation Marquês.
Police made searches at Vara’s house and at offices and the headquarters of Caixa Geral de Depósitos of which he was a director, an appontment arranged by former PM Sócrates.
Operation Marquês led to last November's arrest of former Prime Minister José Sócrates on suspicion of qualified tax fraud, corruption and money laundering and the money trail appears now to have been traced back to former politician Vara whose role at Caixa Geral and its generous funding of Vale de Lobo and other Algarve developments is being unpicked.
Vara’s detention for questioning is belived to be related to recent searches made at Vale do Lobo's management company and Loulé council offices.
Armando Vara was arrested on Thursday 9th July in a move authorised by the Central Department of Investigation and Penal Action. Several teams of investigators from the Tax Authority and the Public Security Police were involved.
Armando Vara also was a director of Millennium BCP and has been interrogated by prosecutor Rosario Teixeira in the presence of judge Carlos Alexandre who ordered that Vara be allowed out on home arrest from Monday July 13th and must to be fitted with an electronic bracelet.
José Sócrates is the only defendant who remains in prison as his friend, the businessman Carlos Santos Silva is at home with an electronic tag and his former driver João Perna is on bail.
Prosecutors suspect that Sócrates received kick-backs to the tune of €12 million related to the Vale do Lobo in a complex scheme involving out of character Caixa Geral de Depósitos funding to Vale de Lobo and other planned resorts, businessmen Helder Bataglia (former director of ESCOM), Joaquim Baroque of the Lena group and Carlos Santos Silva into whose accounts the money finally arrived and then was dished out to the former PM to support his lavish lifestyle in Paris.
Sócrates’ lawyer has denied that his client has anything to do with fiddling the land planning laws to accommodate Vale de Lobo's development.
In September 2014, Armando Vara was sentenced to five years in prison for influence peddling in connection with the Face Oculta case. This sentence is being appealed before the Court in Oporto.
Comments
It has been clear to the IMF for the last few years that Portugal has fudged and faked its reforms - which are not one iota different to those repeatedly asked of Greece.
But no one was allowed to rock the boat and go public and point the finger.
Now, with reluctance in Northern and Eastern Europe to trusting Greece any more, some countries even openly hostile .... how soon before someone directs attention towards Portugal ?
Saying the obvious. That it is pointless making national agreements via the Lisbon Parliament when it still has no control over the local municipals and regions.
Clearly illustrated in Portugal by the continued obstructions and delays on newcomers entering their tourism sector. Still no rapid entry at all although in theory all is simplified.
But why is no one investigating ALL environmentally sensitive decisions taken by Socrates. Freeport was the other well known one ... but how many more ?
If overturning Vale do Lobo's protected status generated x millions and Freeport y millions for Socrates - is this how he allegedly amassed 200 miliion ? And when, not if, will Portugal see it again ?