VDM: Accounts Chamber warns about excessive direct contracts

This Friday, the Court of Auditors (TdC) warned those responsible for World Youth Day (WYD) about the excess of direct remunerations, which account for more than half of the contracts.

According to the audit report of the Catholic Church event held in Lisbon last August, 432 contracts were reported to TdC, including relevant modifications, with a total value of €64,131,635.89, lower than the €75 million originally envisaged. with direct adjustment prevailing, with 55.05% of the awarded value – EUR 34,454,650.72.

“Taking into account that WYD 2023 in Lisbon was announced by the Vatican on January 27, 2019, the reasons given in this special authorization regime for a direct award are not entirely reasonable,” TdC noted in a report published this Friday.

Lisbon was chosen by Pope Francis to host WYD, an event attended by hundreds of thousands of young people from all over the world.

The main ceremonies took place in Parque Eduardo VII and Parque Tejo, north of the Parque des Nations, on the banks of the Tagus River, in the municipalities of Lisbon and Lures.

According to the TdC, the legislator could “choose a less restrictive competition regime”, such as prior consultations inviting at least five entities, after verifying the existence of an “extraordinary situation”.

“Since this is a non-competitive process, it will always allow more proposals to be received and the best to be selected, and thus the public interest will be better served,” he said.

TdC also warned the Assembly of the Republic and the Government that “in future situations and in connection with activities involving the awarding of public contracts, they should take timely steps to organize them, without approving special regimes that deviate from the procedure that protects competition.”

The three contracts subject to review relate to the foundation and construction of the altar stage and the lands of Bobadela, which were awarded in the amounts of EUR 1,063,937.62, EUR 2,980,000.00 and EUR 4,285,094.23, respectively, after a direct award and a preliminary consultation procedure , application of a special public procurement regime.

“However, it was determined that a significant amount of public money was withdrawn from the competition. If this special treatment contained in the LOE had not been approved [Lei do Orçamento de Estado] In 2022 and 2023, each of these contracts must be preceded by an open tender or limited to pre-qualification,” TdC emphasized.

The final contract value for the indirect foundations of the altar stage roof was €1,104,917.34, representing an increase of 3.85% on the original cost.

The total contract value for the construction of the altar was €2,959,128.05, representing a reduction of 0.70% of the amended contract price and 30.21% of the original contract value.

The original cost envisaged for the construction of the altar stage in the Tagus Trancão park – 4,240,000.00 euros – caused controversy due to the high amount, which led to a reduction to 2,980,000.00 euros.

In turn, the contract for the preparation of land in the Bobadela waterfront area was awarded on the basis of preliminary consultations, and the final cost was €3,937,860.47, representing a reduction of 8.10% from the original cost.

The report also shows 66 construction contracts worth €34,653,160.49, 108 for the purchase of goods (€5,531,697.23), 199 for the purchase of services (€19,788,156.63), 53 rental contracts for goods (2,768,358 .34 euros), one contract for the purchase of movable property (1,148,248.00 euros), one contract for the purchase and lease of movable property, two for the purchase of services and leasing of goods and two for the purchase of goods and services (242,015.19 euros) .

The Court of Auditors states that another 71 contracts worth EUR 34,06,546.85 represent investments in the future.

The organization also recommended that Lisboa Oeste, SRU – Sociedade de Reabilitação Urbana, as the owner of the work, ensure in subcontract agreements that subcontractors have the necessary legal qualifications.

TdC explained that two of the three subcontractors “were not provided with any evidence of legal qualifications to carry out construction activities”.

The municipalities of Lisbon and Loures, as well as the General Secretariat of the Presidency of the Council of Ministers, were also asked, in response to TdC’s questions, to “send documentation/contracts, answer accurately and send all requested elements.”

Having analyzed the report and not proving “signs of financial irregularities,” the prosecutor’s office issued a conclusion corresponding to it.