Portugal's PM soothes investors after resignation over corruption probe

In Portugal, Prime Minister Antonio Costa, who recently resigned, assured foreign investors that the country remains open for business and is committed to maintaining its attractiveness despite an ongoing corruption investigation into “green” energy projects.

Costa’s resignation came after allegations of illegalities in his government’s handling of lithium and hydrogen projects, as well as a large-scale data center. President Marcelo Rebelo de Sousa has called for elections on March 10. Costa has denied any wrongdoing.

The Start Campus data center project has been hailed as “one of the biggest foreign direct investments in Portugal in recent decades.” However, the CEO of the project, Afonso Salema, was among those detained as part of the ongoing investigation. He has also denied any wrongdoing.

An investigation is also underway into alleged government interference in plans by London-based Savannah Resources to build four open-pit lithium mines in northern Portugal. The company has stated that they are cooperating with authorities and that neither the company nor any of its staff are targets of the investigation.

Local residents and environmentalists have strongly opposed the lithium projects, citing lack of transparency in the processes and warning of “dangerous promiscuity” between decision makers and mining companies.

Fearing that recent developments could deter foreign investment in the country, Costa made a televised address to reassure investors, stating that the country’s authorities comply with the rules and have strong regulations in place.

“To all those who have invested in Portugal, I want to say that today, and always, business investment is desired, welcome and will be well received,” Costa said.

He also emphasized that “eliminating bureaucracy… in strict respect of the law” was a priority for his government in implementing projects in the national interest.

Another government official named as a formal suspect in the investigation is Costa’s infrastructure minister, Joao Galamba, who previously served as energy secretary. Costa is set to meet with the president to discuss Galamba’s future.

Costa’s chief of staff Vitor Escaria was also detained, and authorities found nearly 76,000 euros in cash hidden in his office, located in the premier’s official residence. His lawyer has stated that the cash wasn’t obtained illegally.

“The seizure of envelopes with money in the office of a person I chose hurts me… embarrasses me before the Portuguese and I have a duty to apologise,” Costa said.

(Reporting by Catarina Demony; Editing by David Gregorio)