Galp, the Portuguese energy company deeply involved in the current oil exploration row and in court over its refusal to pay the ‘extraordinary energy contribution’ of over €100 million, treated three of Portugal’s top politicians to Euro2016 tickets and travel to and from France by privately charted aeroplane.
The three politicians stupid enough to think this acceptable, are:
- Rocha Andrade, the Secretary of State for Fiscal Affairs who also attended the Euro2016 final in Paris,
- Jorge Costa Oliveira, the Secretary of State for Internationalisation
- João Vasconcelos, Secretary of State for Industry
The three accepted invitations to attend Portugal vs Hungary in Lyon in an ‘all expenses paid’ trip with other ‘friends of the company.’
With regard to Rocha Andrade, a statement from the Ministry of Finance made clear that this sort of lavish entertainment was totally acceptable and within normal social boundaries.
The Ministry failed to spot any conflict of interest, ethical dilemma, or covert pressure to steer government thinking to a pro-Galp position while much of the nation's population unites behind an ‘anti oil and gas exploration’ banner.
As for Galp’s refusal to pay up a legally instituted tax, the ministry in charge of the country’s taxation glibly referred enquirers to the courts, saying "it’s a legal matter." Galp has a history of 'legal matters' with ten current court processes in action to delay or avoid taxation.
The Secretary of State for Fiscal Affairs, Rocha Andrade, seems less clear of his position and decided, rather late in the day, to pay for the trip out of his own pocket rather than be seen to be beholden to a major corporate involved in contentious key areas of government energy policy and one deliberately withholding taxes properly due to the government.
A spokesman for Galp Energía said that it is 'common and ethically acceptable' to invite officials with whom there are relations to certain events.
Galp said that "this kind of activity is common and is considered acceptable at the ethical level of international business practices."
There already have been calls in parliament for Rocha Andrade’s resignation and the Left Bloc has described as "ethically reprehensible" that those in power accept "gifts that legitimise their promiscuity with big business", arguing that this sort of behaviour must have "political consequences."
Later, Jorge Costa Oliveira, the Secretary of State for Internationalisation, said he would repay to Galp all the costs associated with his trip to France and João Vasconcelos, Secretary of State for Industry, said he already had paid for the flight.
The government today said it would be issuing a 'code of conduct' to cover freebies offered to top politicians - a statement designed to show that one does not yet exist.
This is not so, the Tax Authority already has in place a perfectly clear set of rules covering corporate gifts and hospitality - the main one being 'you can not ask for or accept gifts, hospitality or benefits of ay kind that are real, potential or merely apparent, that could influence the exercise of your functions..."
This seems not to have been clear enough for Rocha Andrade, or maybe he thought that being the boss entitled him to ignore the rules he is in charge of enforcing on his staff.
The Overseas Minister, Augusto Santos Silva, tried to smooth over the affair, saying the money had been repaid and that this marked an end to the matter - optimism being one of his more endearing qualities.
According to legal experts, the behaviour of these three members of the government means they now are prevented from taking part in any decision affecting Galp or face legitimate claims of bias.
It matters not that money is sent to Galp to cover the cost of the trips, the damage is done and the covering up of these tracks is simply recognition that the behaviour was wrong in the first place.
__________
See also: 'Secretary of State vows to reimburse GALP over football freebie revelations' (The Portugal Resident, August 04, 2016)
Comments
Apologies I forgot that lawyers have to make a living too in endless court cases to force the other side to comply with the law.