Finance Minister Fernando Medina has admitted that the Portuguese government sacked the CEO of national airline TAP last month without obtaining a legal assessment, adding to a resounding scandal surrounding the state-owned airline.
His comments to Parliament late on Thursday contradicted claims by fellow ministers who said the day before that the government had obtained a legal opinion supporting the decision. This increases the odds of the state losing a potential lawsuit brought by the dismissed executives, which could run into millions of euros.
The growing controversy over TAP, which has already led to government resignations, could hinder Lisbon’s preparations to privatize the airline, with major foreign rivals Lufthansa and British Airways IAG preparing the ground for potential bids.
Christine Ormeyer-Widner, CEO, and Manuel Biga, chairman, were fired with good reason on March 6, after an inspection revealed a severance package of €500,000 ($547,750) paid to former board member Alexandra Reis , was illegal.
After Ormeyer-Widner called his dismissal “illegal”, the main opposition Social Democrats warned that if the decision was not legally upheld, the state could lose a potential legal dispute.
Parliamentary Affairs Minister Ana Catarina Mendez and Cabinet Minister Mariana Vieira da Silva said on Wednesday that the government had obtained a legal opinion in favor of the decision but had refused to send it to Parliament “to preserve the public interest”.
However, late on Thursday, Mr Medina said the reasons for the dismissals were “very clear” due to the illegal nature of the severance package, as defined by the official Financial Inspectorate, and that no legal opinion had been attached.
The leader of the far-right Chiga party, Andre Ventura, said that “the government has admitted that he lied” and urged Prime Minister Antonio Costa to consider whether Medina was fit to take over.
In a tweet, Liberal Initiative leader Roi Rocha described the situation as “a festival of inconsistency and total disrespect for Parliament”.
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