Public procurement and tax fraud among the complaints made to the Anti-Corruption Mechanism

In 2023, the National Anti-Corruption Mechanism (MENAC) received a total of 42 complaints, including on the functioning of courts and judicial processes (11), public procurement (nine) and fraud and tax evasion (five).

This data appears in MENAC’s 2023 annual report – the first that the organization has produced since its definitive installation in June of that year – which states that of the 42 external complaints received, five were anonymous and 37 resulted from the participation of identified individuals.

According to the report, the same complainant presented nine complaints with different objects on successive dates, and among the 42 complaints received, one was forwarded by the Insurance and Pension Funds Supervision Authority, a public body.

Regarding the results of the complaints received at MENAC, after assessment by the president of the organization, the judge advisor António Pires da Graça, 15 were archived from the outset (preliminary filing), 17 led to the opening of internal processes and the carrying out of due diligence and 10 were forwarded to the competent authority.

The 42 complaints related to topics such as the functioning of courts and judicial processes (11), public procurement (nine), fraud and tax evasion (five), protection of whistleblowers (four), labor issues in the public service (three), conflicts of interest in the public sector (two), functioning of tax administration (two), functioning of Social Security (two), functioning of security forces (two), moral harassment at work (one), executions and seizures (one).

MENAC also received 194 judicial communications relating to decisions taken at different procedural stages by the Public Prosecutor’s Office and courts when crimes associated with the General Corruption Prevention Regime and the role of MENAC itself were at stake.

The organization states that these are mainly crimes of corruption, abuse of power, embezzlement, malfeasance, “which as a whole are present in 80% of the processes”.

It also notes that “the majority of criminal proceedings are associated with suspicions involving entities of a public nature (93%) and, among them, the sectors of local public administration (49%) and central public administration (27%) stand out” .

The report highlights that “the main areas of risk associated with criminal practices evidenced in procedures with the presence of evidentiary material are administrative decisions, the exercise of delegated public functions, asset management and public contracting”.

Regarding risk factors, MENAC points out the exercise of discretionary powers, conflicts of interest and the management of material and financial assets of entities.

In the report’s introductory message, President António Pires da Graça recognizes the support provided by the Attorney General’s Office and the Judiciary Police in setting up the body and promises to “make every effort to fully operationalize MENAC in the shortest possible time”, following the recommendations of the latest GRECO (Group of States against Corruption) report.

In its latest report, released in January, GRECO called on Portugal to improve the effectiveness of the system to prevent corruption in the Government’s main executive functions and law enforcement agencies.

In the 5th evaluation round report, GRECO recognizes that Portugal has developed an extensive legal and institutional anti-corruption framework, but the effectiveness of this framework strongly depends on the full operation of the National Anti-Corruption Mechanism and the Entity for Transparency, which has not yet happened .