An investigation report by the Portuguese General Inspectorate for Finances concludes that there was fraud during the privatization of Tap in 2015 – but in a legal way. The airline was therefore paid with its own money.
The Portuguese airline Tap is currently doing well. In the spring, the management team led by airline boss Luís Rodrigues presented the highest profit in the airline’s history and, with 15.9 million passengers, carried almost as many people as before the pandemic. In addition, the airline’s management is said to be negotiating with the Lufthansa Group about acquiring a 19.9 percent stake.
About a year ago, the Portuguese government, which has held 100 percent of the shares again since the pandemic, decided to quickly privatize 51 percent of these shares again. The entry of financial investors was explicitly ruled out. The aim was to involve large investors from the aviation sector, either alone or in consortia led by them, it was said.
Tap was bought with own money
Perhaps also from the experience of the last privatisation in 2015. At that time, Atlantic Gateway, a consortium led by Azul founder David Neeleman and Portuguese entrepreneur Humberto Pedrosa, took over 61 percent of the airline’s shares. According to the Portuguese General Inspectorate for Finance, this was done using dubious methods at least. The authority had announced an investigation into the privatisation in February. The newspaper SIC News The final report is now available.
It has been confirmed that Tap was essentially bought with its own money. The focus is on an aircraft purchase from Airbus. Tap had contracts to lease twelve Airbus A350s. Atlantic Gateway cancelled the deal and opted for 53 other aircraft instead. This is said to have cost the airline 444 million euros. In return, however, Airbus is said to have provided Neeleman with a loan of 226 million dollars. This 226 million dollars is said to have flowed to Tap via Atlantic Gateway.
Portuguese leadership was informed
According to the Portuguese newspaper, it has now been proven that Tap was indeed bought with the company’s own money, but apparently legally. A scheme was used that made it possible to circumvent the Commercial Companies Code. The law prohibits granting loans or funds to third parties so that they can buy their own shares.
Tap was even said to have been obliged to repay the 226 million US dollars borrowed from Neeleman if the planes had not been purchased. The structure is said to have been known to the then Prime Minister Passos Coelho as well as the Minister of Finance and Maria Luís Albuquerque.
Public prosecutor to initiate investigation
The General Inspectorate of Finance concludes that the cases should be forwarded to the Public Prosecutor’s Office for investigation.
