PJ Probes Alleged Fraud in Madeira’s European Fund Acquisition
Portuguese authorities are intensifying efforts to address alleged fraud linked to European fund allocation in Madeira. The investigation, dubbed Operation ‘Scorched Earth’, targets irregularities in the approval of funds meant for reforestation projects.
Details of Operation Scorched Earth
Seven individuals have been formally charged in this ongoing case. This includes five individuals and two legal entities as part of the investigation led by the European Public Prosecutor’s Office.
Investigation Overview
The Portuguese Judicial Police (PJ) are investigating the fraudulent allocation of European funds, with estimated damages exceeding €3.6 million. The operation executed 26 search and seizure warrants across the districts of Lisbon and Funchal.
Key Findings
During the investigation, the PJ uncovered management relationships between beneficiaries of the funding and their suppliers. These findings suggest potential conflicts of interest concerning projects financed under the Portugal 2020 program.
Financial Implications
The research revealed that the beneficiaries had requested a substantial payment of €3,829,345.27. They secured approvals and payments totaling at least €3,675,231.87 for incentives.
Legal Consequences
The alleged offenses include:
- Aggravated fraud in obtaining subsidies
- Economic participation in business
- Undue receipt of advantage
- Corruption
- Money laundering
The operation involved a coordinated effort of 58 inspectors and 15 forensic experts, alongside the contributions of two European delegate prosecutors. As the investigation continues, authorities are determined to uphold integrity in fund management.
