Portugal"s TAP privatization deal under investigation amid Commissioner nomination

The TAP privatization deal, which took place in 2015, is currently under investigation by the Portuguese Public Prosecutor's office. This deal involved Atlantic Gateway, led by David Neeleman, acquiring the Portuguese airline with a $226 million loan from Airbus, guaranteed by TAP itself. The arrangement allowed TAP to circumvent Portuguese laws that prohibit the transfer of loans for share acquisitions. The deal was presented to the ruling centre-right government at the time, with Maria Luis Albuquerque serving as finance minister. The investigation has gained traction following a report from the General Inspection of Finance, which highlighted the questionable nature of the transaction. The document detailing the deal has been forwarded to the Central Department of Criminal Investigation and Prosecution, adding to an ongoing inquiry. This scrutiny comes at a critical time as Albuquerque has been nominated as Portugal's future European Commissioner. Opposition parties in the national parliament have called for an audit of Albuquerque, which is expected to occur in the coming weeks. Additionally, she will face a hearing in the European Parliament as part of her commissioner-designate process in mid-October. The political implications of this investigation could significantly impact her nomination and the future of TAP. Currently, TAP is owned by the Portuguese State, but plans are in place for the new administration to sell at least 51% of the airline, a move approved by the former socialist government. The outcome of the investigation and the audit may influence the privatization process and the political landscape in Portugal.