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Police raid Portugal's TAP Airlines in a corruption probe

The prosecutor general’s office reported that Portuguese police conducted a search of the headquarters of TAP, Portugal's flag carrier, and other companies in the country on Tuesday. This was part of a continuing investigation into suspected fraud in a complicated aircraft leasing deal from 2015.

The searches are a result of an investigation conducted in 2023 into TAP's lease deal for 53 Airbus planes, which was struck shortly after the company had been privatised. It then came under control of a joint-venture between American-Brazilian aviation businessman David Neeleman, and Portuguese Barraqueiro Group owned by Humberto Porsa.

Both Neeleman & Pedrosa deny any wrongdoing.

TAP is now fully owned by the state and has entered a new process of privatisation.

In a press release, the Infrastructure Ministry stated that legal proceedings are to be considered "normal". The Infrastructure Ministry said in a statement that the legal proceedings should be viewed "as normal".

The prosecutor's said that it suspects the leasing contract to be part of a scheme illegal in which Airbus assisted in financing the acquisition of TAP by Airbus in 2015, leading to losses for the airline.

In a press release, it stated that "the facts in question likely constitute crimes of harmful administration in the private sector and passive corruption, as well as aggravated tax fraud and Social Security fraud."

Airbus' spokesperson said that the company "doesn't comment on any situations involving their client companies".

Airbus's historic business dealings were the subject of multiple investigations. This led to a $4 billion settlement for corruption with French, British, and U.S. Authorities in 2020 and a $14 million French settlement 2022.

Airbus has made sweeping changes, including a new compliance system.

TAP's spokesperson stated that the airline does not comment on court proceedings, and cooperates fully with all authorities.

Prosecutors said that 25 locations were being searched, including law firms, auditing firms, and companies.

Barraqueiro Group confirmed that it had also been searched but was confident of its innocence in relation to the privatisation of TAP. It stated that it was cooperating with the investigation and did not have any cause for concern. (Reporting and additional reporting by Inti landauro, editing by Andrei Khalip; Conor Humphries, Jan Harvey and Andrei Khalip)

(source: Reuters)