Portuguese Construction Giant Under Investigation for Environmental Crimes and Fraudulent Subsidies
A major investigation is underway in Portugal, targeting Construtora Verdasca, one of the nation’s largest construction firms, over allegations of environmental crimes, illicit land expansion, and the fraudulent acquisition of 19 million euros in European union subsidies. The probe, led by the Judiciary Police (PJ), has already resulted in the execution of 25 search warrants at company premises and the Ourém City Council, raising concerns about potential corruption and widespread ecological damage.
The investigation centers on an alleged illegal extension of approximately 20 hectares of land used for concrete production, where authorities suspect significant soil and water contamination and the clandestine burial of inert materials. According to reports, the activity occurred within a protected area – specifically, a National Ecological Reserve – without the required operating licenses or construction permits.
“The investigations focus on facts that may constitute crimes of violation of urban planning rules, pollution with common danger, corruption, fraud in obtaining subsidies, and money laundering,” a PJ statement released on Wednesday confirmed.
The alleged illegal construction is situated within “Spaces for the exploration of Geological Resources – Conservation Forest Spaces,” further highlighting the environmental sensitivity of the area. Authorities suspect the industrial unit has been operating while illegally depositing waste on the site.
The financial implications of the case are considerable. At least 5.5 million euros of the awarded subsidies have already been disbursed to companies within the Construtora Verdasca business group. These funds were intended to support initiatives in the industrial sector, including research and development, digital transformation, internationalization, and environmental sustainability. The applications for these funds were reportedly based on operating licenses and provisional construction permits issued by the Ourém Municipal Council, which are now under scrutiny.
The scope of the alleged wrongdoing extends beyond environmental concerns. Investigators are examining potential collusion between company representatives and officials within the Ourém City Council, suggesting a possible scheme to facilitate the illegal operations.
The future of Construtora Verdasca, which employs over a thousand workers and has numerous ongoing projects, is now uncertain. The company’s operations could be halted entirely as the investigation progresses. The case underscores the importance of rigorous oversight in the allocation of EU funds and the protection of ecologically sensitive areas.
The investigation is ongoing, and further details are expected to emerge in the coming weeks.
why,Who,What,and How did it end?
Why: The investigation was launched due to suspicions of environmental crimes,illicit land expansion,and fraudulent acquisition of EU subsidies by Construtora Verdasca.
who: The key players are Construtora Verdasca, the Judiciary Police (PJ), officials at the Ourém City council (potentially involved in collusion), and the european union (as the source of the subsidies).
What: Construtora Verdasca is accused of illegally extending a concrete production facility onto approximately 20 hectares of protected land, causing potential soil and water contamination, and fraudulently obtaining 19 million euros in EU subsidies. The company allegedly operated without proper licenses and permits.
How did it end? As of the current reporting, the investigation is ongoing. While no final resolution has been reached, the PJ has executed search warrants, and the future of Construtora Verdasca is uncertain, with potential operational halts. The case highlights the need for stricter oversight of EU fund allocation and environmental protection. The outcome will depend on the evidence gathered and any subsequent legal proceedings.
