PRIME MINISTER COSTA RESIGNS

 

 

Portugal’s President Marcelo Rebelo de Sousa is considering calling a general election following the sudden resignation of Prime Minister António Costa amid a corruption scandal.

 

Costa, Portugal’s prime minister since November 2015, has resigned as Portugal’s prime minister due to an investigation into his administration’s handling of concessions for lithium mining and a hydrogen project.

 

The Portuguese Prosecutor’s Office is investigating Mr. Costa and several members of his cabinet for alleged crimes of active and passive corruption, prevarication, and influence pedalling.

 

Mr. Costa announced his sudden resignation on Tuesday in a televised statement just hours after prosecutors detained his chief of staff over the corruption allegations.

 

“The duties of the prime minister are not compatible with any suspicion of my integrity,” he told to a televised press conference. “In these circumstances, I have presented my resignation to the President of the Republic.”

The prime minister met with President Marcelo Rebelo de Sousa to inform him of his decision and said that his conscience was clear, but that he would not stand for another term as prime minister and leader of Portugal’s Socialist Party.

 

He said that he totally trusts the justice system and has promised to collaborate with it over the scandal. “I want to say eye to eye to the Portuguese that my conscience is clear of any illicit or censured act,” he said.

 

In accepting Mr. Costa’s resignation, President de Sousa said he would hold consultations with the various political parties. It is up to him to decide if parliament with its current Socialists majority must be dissolved to make way for a new general election. An alternative for the president would be to choose a new prime minister from the Socialist Party.

 

This crisis comes at a particularly awkward time as parliament is due to vote on Portugal’s 2024 budget later this month.

 

In addition to Mr. Costa’s chief of staff, Vitor Escaria, four other people, including a business consultant, have been detained, according to the prosecutor’s office. They are due to appear shortly before a judge.

 

About 140 detectives reportedly searched many residential and government premises, including that of the infrastructure and environment minister João Galamba, as well as municipal offices in Sines.

 

With the green transition in mind, the European Union wants to reduce its imports on lithium and other raw materials from China, Africa and South America. Europe’s increasing demand for electric cars is highlighting Portugal’s valuable lithium reserves in the north of the country and a huge green hydrogen project in the historic coastal town of Sines in the district of Setubal south of Lisbon.  The projects have been highly controversial and evoked environmental protests.  .

This developing story will be updated.