Five arrested in Portugal in suspected EU fraud involving IT school projects

The European Public Prosecutor’s Office (EPPO) in Porto (Portugal) has conducted searches in an investigation related to projects for IT acquisition by a public university and secondary schools, funded by the Recovery and Resilience Facility (RRF).

These investigative measures were launched in cooperation with the national prosecutor’s office, who is handling a parallel investigation into similar realities.

At the EPPO’s request, the Portuguese Judiciary Police (Polícia Judiciária) carried out 59 searches today in several regions of Portugal, including at public entities, IT suppliers and other private companies.

Five individuals were arrested, including one public official.

A €4.6 million freezing order was also executed to compensate the estimated damage to the EU budget.

The investigation, code-named Nexus, is analyzing public contracts financed by RRF funds, on suspicion of serious irregularities in public procurement procedures for the acquisition of IT and cybersecurity equipment by public education institutions. The contracts under investigation were awarded to a national business group and its related companies, dedicated to importing, exporting and selling computer hardware and software.

The investigation targets a possible organized and systemic criminal scheme formed to obtain privileged information in public contracts, with the aim of winning tenders, involving suppliers and potential buyers.

The facts under investigation may constitute subsidy fraud, active and passive corruption, unlawful participation by a public official in a business transaction, illicit receipt of funds by public officials, document forgery and abuse of office.

The arrested persons will be heard before the competent judge at Porto’s Criminal Investigation Court, who will decide on the possible imposition of coercive measures.

The investigation is ongoing to clarify the facts and assess whether any criminal offenses have occurred. 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.