In an investigation led by the European Public Prosecutor’s Office (EPPO) in Lisbon (Portugal), codenamed ‘Terra Queimada’ (‘Scorched Earth’), multiple searches were carried out today, as part of a probe into suspected subsidy fraud involving reforestation in Madeira, with an estimated damage of €3.6 million.
At the EPPO’s request, the Portuguese Judiciary Police (Polícia Judiciária) carried out 26 searches in the regions of Madeira and Lisbon, at the houses of suspects, public entities and companies under investigation. Five individuals were formally named as suspects, including three public officials, as well as two companies.
The searches are related to the program ‘Portugal 2020’, funded by the European Regional Development Fund (ERDF), and specifically to a rural development programme for the Autonomous Region of Madeira, aimed at reforestation, funded by the EU with over €3.8 million. At least €3.6 million were already paid to the beneficiaries under investigation.
The investigation involves alleged wrongdoing in public procurement procedures. It is understood that there may have been a conflict of interest involving the beneficiaries of the funds and the suppliers, which could have harmed the EU’s and national financial interests. It is also alleged that the subsidies were unlawfully obtained with the help of public officials from the agencies responsible for managing the funds, namely Portugal’s Institute for the Financing of Agricultural and Fisheries and the Managing Authority of the PRODERAM 2020 Programme.
The facts under investigation may constitute procurement fraud, unlawful participation by a public official in a business transaction, unlawful receipt of funds by public officials, corruption and money laundering. The investigation is ongoing to clarify the facts and assess whether any criminal offenses have occurred.
The investigative measures were led by two European Delegated Prosecutors, with the support of the Portuguese Judiciary Police.
All persons are presumed innocent until proven guilty by the competent Portuguese courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.
