The secretary of state for finance says the government is ruling out selling all of TAP.

Secretary of State Joao Nuno Méndez said this Friday that the government is not prepared for the possibility of selling all of TAP as part of a re-privatization process that is under preparation, in line with statements from the prime minister.

“It is our understanding that the government is not ready for the possibility of selling the entire company,” the Secretary of State for Finance told the TAP commission of inquiry in response to a question from PSD MP Hugo Patricio Oliveira about the reprivatization process that is being prepared.

João Nuno Mendes recalled that Prime Minister António Costa has publicly stated this orientation of the government, so that the process is being carried out with the aim of maintaining a strategic stake in the airline.

The “start” for the re-privatization of the TAP was given by the publication of a resolution of the Council of Ministers, which determines the conduct of two independent evaluations, which must precede the actual start of the process, which occurs only after the publication of the resolution. – the law resulting from the conclusions of the Government regarding these estimates.

The official also confirmed that the commitments made to the European Commission, which made it possible to provide assistance to the company, “do not require the sale of TAP.”

João Nuno Mendes was also asked about the measures taken as part of the restructuring plan, such as layoffs and pay cuts, that are still being applied – a process he did not lead – and whether they went beyond what was necessary.

“We must have the humility to understand that the job is not done, there are several years left in terms of restructuring, this is a marathon,” the official said, arguing that the company’s recent good results “are not decisive factors.” change the solvency structure laid down in the restructuring plan”, under the fear of making an interesting decision in the short term, but which will need to be explained in the event of an economic downturn or even a new pandemic.

“I believe the decisions the company has made have been the best ever,” he stressed.

In addition, Joao Nuno Mendez noted that any changes to the restructuring plan must be approved by the European Commission.

As for the proceedings before the European Court of Justice, which have already led to the annulment of state aid to the German company Lufthansa, the official said that he was not aware of any proceedings against the Portuguese state, other than those involving the European Commission.

“We are very confident that this process can be overcome with respect to TAP, not least because assistance has been provided,” he stressed.

During interrogation at the PS, João Nuno Méndez ensured that he had nothing to do with the process of leaving former TAP administrator Alexandra Reis with a €500,000 compensation to which he was not entitled, and that he only found out about it. when it became public, December 24, 2022

Regarding management contracts with TAP administrators, which are mandatory for public companies and which have not been signed, João Nuno Mendes confirmed that this topic was discussed at the first meeting with the then chairman of the board of directors, Manuel Beja, who told him that, according to the latest rules, contracts should pretend to be administrators.

The Secretary of State also confirmed that the Directorate General of the Treasury and Finance (DGTF) had expressed a negative opinion regarding the inclusion of a risk clause in these contracts and that they were awaiting submission by administrators for approval by the Technical Committee. Accompanying and Monitoring Unit for the Corporate Public Sector (UTAM).

The current finance minister is being heard this Friday before the TAP panel of inquiry as former finance minister (from March to December 2022) and finance (from June 2020 to March 2022).