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Sophisticated fraudsters diverted €2.1 million

fibreopticFour men have been arrested on suspicion of running a scam that netted at least €2.1 million by stealing from many of Portugal's councils, hospitals and state services.  

The Judicial Police today detained three Portuguese and one foreigner aged between 22 and 37.

The National Unit for Combating Corruption started the investigation in October 2014 and organised 11 searches during which the Judicial Police seized computer equipment and documentation which they say shows the men’s involvement in the sophisticated fraud.

The arrests took place in Lisbon, Setúbal, Évora, Faro and Madeira and the police say the men withdrew money from the bank accounts of dozens of public bodies and individuals and used false data to divert payments from the state that should have gone to legitimate suppliers.

Local councils, hospitals, other public institutions and central state services in Lisbon, Setúbal, Matosinhos, Maia, Oporto and the Algarve have been relieved of at least €2.1 million.

During the investigation, the bank accounts of those arrested were seized and were found to contain around €1.5 million.

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Comments  

-8 #3 Taz 2015-03-10 10:35
Quoting Dierdre:
The public procurement systems in these basket case economies fall far short of what the EU requires.

Any purchase over the value of x MUST BE SCRUTINISED by a team with rotating members. No one knowing they will be in that buying group until an hour before the meeting or sales pitch. Nobody then named. Minimising the chance of being nobbled.


Not a bad concept but assumes the system cannot be fixed. Enforcement of the law is what seems to be lacking.
Institute compulsory minimum judgements on those found guilty of violating the public trust (no judge can give probation a la US Federal system) and a audit government body with real teeth.
-6 #2 Joao Martins 2015-03-10 10:01
I'm so proud to be Portuguese,
brings a tear to my eye.
-7 #1 Dierdre 2015-03-10 08:58
The public procurement systems in these basket case economies fall far short of what the EU requires.

Any purchase over the value of x MUST BE SCRUTINISED by a team with rotating members. No one knowing they will be in that buying group until an hour before the meeting or sales pitch. Nobody then named. Minimising the chance of being nobbled.

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