Portuguese PM Antonio Costa resigns amid corruption scandal

Lisbon — Portuguese Prime Minister Antonio Costa resigned on Tuesday amid an investigation into alleged irregularities committed by his majority Socialist administration in handling lithium mining and hydrogen projects in the country.

Costa announced the decision in a televised statement after meeting President Marcelo Rebelo de Sousa. He said he conscience was clear, but he would not stand as candidate for premiership again.

Prosecutors earlier on Tuesday named infrastructure minister Joao Galamba as a formal suspect and detained Costa’s chief of staff. The opposition has demanded that the government step down with immediate effect.

Costa said he was “fully available to co-operate” with the justice system after prosecutors said he was also the target of an investigation.

“The dignity of the functions of prime minister is not compatible with any suspicion about his integrity, his good conduct and even less with the suspicion of the practice of any criminal act,” Costa told reporters.

It was the latest scandal facing Costa since a controversy around state-owned airline TAP in January.

The prosecutor’s office said in a statement five people had been detained as part of the investigation, including Vitor Escaria, Costa’s chief of staff, and a business consultant. Local media named the business consultant as Diogo Lacerda Machado, a friend of Costa.

More than 40 searches were carried out on Tuesday at several government buildings, including Escaria’s office and the infrastructure and environment ministries, the prosecutor’s office said in the statement.

Earlier, it confirmed searches at Escaria’s premises, but declined further comment. Machado is yet to publicly comment and Reuters could not immediately reach him for comment.

Prosecutors are investigating alleged corruption and influence peddling in lithium exploration concessions in northern Portugal, a project for a hydrogen plant in the port of Sines and a mega data centre investment there.

“At stake may be ... facts capable of constituting crimes of malfeasance, active and passive corruption of politicians and influence peddling,” the prosecutor’s office said. 

During the investigation, the prosecutors said in the statement they became aware that the suspects used Costa’s name and authority to “unblock procedures” related to the deals. They added that the Supreme Court would look into Costa’s possible role in the deals.

The mayor of the town of Sines, Nuno Mascarenhas, was also detained, prosecutors said. Mascarenhas’ office did not immediately respond to requests for comment.

Reuters