Portugal ex-PM to stand trial for alleged money laundering; graft charges dropped
April 10, 2021, 10:00 am

Portugal ex-PM to stand trial for alleged money laundering; graft charges dropped

Portugal's former Prime Minister Jose Socrates holds his protective mask as he leaves the court after hearing the rule that he will not stand trial over corruption charges in Lisbon, Portugal, April 9, 2021. (File photo: Reuters)

More than six years after his arrest in a major corruption investigation, Portugal’s former Prime Minister Jose Socrates will stand trial, but only on lesser charges of money laundering and falsifying documents, a judge in Lisbon ruled on Friday.

In a decision that sent shockwaves through the country, Judge Ivo Rosa of Portugal’s criminal court for preliminary hearings dismissed the corruption accusations against Socrates, 63, as weak, inconsistent or lacking sufficient evidence, and noted that the statute of limitations had run out on some of them.

Prosecutors’ arguments are based on speculation and fantasy,” he said while reading out his decision.

Rosa also dismissed tax fraud charges against Socrates, who will be tried on three counts of money laundering worth some 1.7 million euros and three others of faking documents related to service contracts and the purchase and renting of an apartment in Paris.

Socrates has denied wrongdoing, labelling the investigation as politically motivated as he sought to avoid a trial.

Businessman Carlos Santos Silva, a friend of the former prime minister who is accused of acting as a middleman in the deals, will also stand trial. He also has denied the charges.

A socialist who served as prime minister from 2005 to 2011, Socrates was arrested at Lisbon’s airport in November 2014 as part of Portugal’s biggest-ever corruption investigation, codenamed Operation Marquis. It was the first time an ex-premier had been arrested in the country.

He spent months in jail before being placed under house arrest.

In a country notorious for its slow justice system, it took prosecutors three years after the arrest to formally charge Socrates with 31 crimes allegedly committed in the 2006-2015 period.

Those included passive corruption while in office, tax fraud and financial crimes in an alleged scheme involving the disgraced former heads of Banco Espirito Santo (BES) and Portugal Telecom. Ricardo Salgado, former head of the collapsed BES, will be tried for “confidence abuse”. Salgado has denied wrongdoing.

“Something unique happened here today. All the great lies of the prosecution collapsed,” Socrates told reporters, adding that he will fight the remaining accusations. A few protesters shouted “Shame!” as he spoke.

No trial date has been set and both sides are expected to appeal Rosa’s decision.

Socrates stepped down as prime minister in March 2011, during the middle of his second term, after a debt crisis forced him to request an international bailout for the Iberian nation.

A subsequent center-right government imposed a painful austerity program including tax hikes and wage and pension cuts.

The Socialist Party returned to power in 2015 under current Prime Minister Antonio Costa, who had led the interior ministry for two years during Socrates’ first term in office.

source: Reuters

Image source: Reuters

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.