The defense received the technically bankrupt Arsenal do Alfeite and paid the wages with a bank loan.

The Minister of National Defense said on Tuesday that he received Arsenal do Alfeite as a “technical bankruptcy” and that he had taken out a loan of about two million euros to pay salaries and meet tax obligations.

“We have received a technically bankrupt Arsenal do Alfeite, with countless ships delayed far beyond the period established for their maintenance, which has caused great damage to the execution of tasks, the efficiency of the Portuguese Navy, but to which we will have to respond,” said Minister of National Defense Nuno Melo being heard in parliament at regimental hearings.

According to centrist Nuno Melo, “something must be done because at the moment there is even an inability to generate sufficient income to pay salaries and tax obligations.”

“I just arrived at the ministry and the first measure we had to take was to facilitate, provide, request a loan of one million four hundred thousand euros to pay salaries and tax obligations. A week ago we had to provide another loan of 936 thousand euros. Not a single arsenal will survive in such conditions,” he warned.

A government official said the equipment at Alfeyta was “outdated and not suitable for the current Navy.”

According to Nuno Melo, the ratio between workers and administrative personnel is “one administrative employee per employee,” emphasizing that Alfaite needs qualified specialists.

The minister also warned that completion deadlines were not being met, citing the example of the Tridente submarine, which is 30 years old and will remain “in the shipyard for three years”, considering this a “very serious situation”. .

Later at the hearing, Nuno Melo said that he had asked that within 30 days he be presented with a set of “opportunities to resolve the current tragic financial situation of Arsenal do Alfeite, as well as proposals for possible measures aimed at a different model, guaranteeing the Portuguese Navy that what the Navy needs.”

PKP MP António Filipe expressed concern about the company’s current situation, blaming a lack of investment in recent years, and asked the minister if he thought it would be better for Arsenal to return to the Navy after privatization in 2015. but Melo didn’t answer.

Arsenal do Alfeite has experienced serious financial problems in the past, which led to wage delays and even Christmas bonuses in 2020 for the more than 400 workers who make up the company, responsible for the repair and maintenance of Portuguese Navy ships.

Last year, the president of the board of directors of Arsenal do Alfeite, José Luis Serra, warned that the company has premises and equipment that are many years old, some of which have problems with functioning and safety, stressing, however, that in 2022, after six consecutive years of suffering losses, Arsenal ended the year with positive net results.