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IGF discovers more than €1 billion in unreported public subsidies in 2021 and 2022 – Economy

IGF discovers more than €1 billion in unreported public subsidies in 2021 and 2022 – Economy

In 2021, the value of subsidies and benefits granted by public bodies and sent to the General Financial Inspectorate (IGF), as defined in current legislation, amounted to €7,471 million. However, according to an IGF report, an oversight review revealed that 145 donors (among 90 local authorities, 45 entities from the autonomous region of the Azores and 10 from the central administration) missed the deadline for reporting subsidies worth €628.1 million. “It is against the law.”

“The majority of entities claimed limited resources or lapses/forgetfulness, and in the case of the Azores, it was noted that there was no protocol between the governments of the Republic and the regional governments,” the document states.

In 2022, a year in which reported subsidies and public benefits amounted to 8,763 million euros, the supervisory audit revealed 441 million euros that had not been reported.

Thus, over the two years as a whole, the value of unreported subsidies exceeded €1,000 million.

For 2022, the reporting failure involved 157 donors, including 115 local authorities, 41 entities in the autonomous region of the Azores and a public institute. As in the previous year, most of these entities reported a lack of resources.

However, according to the Internet Governance Forum, there are 11 donors, worth 60 million euros, “for which the relevant authorities have been contacted, to ultimately determine budgetary responsibilities.”

The 2022 oversight audit also revealed that one donor “granted public subsidies to 11 entities worth €1.4 million, without an enabling legal or regulatory basis.”

On the other hand, more than half of the 52 public bodies that awarded grants worth more than 10 million euros did not comply with the legal obligation to publish them online, for a total of 5,498 million euros, including those with procedures to prevent corruption risks. The Published Relevant Offenses (PPR), “does not identify critical aspects and measures to mitigate the risks of fraud, corruption and irregular practices, demonstrating relevant deficiencies in the internal control system in this area.”

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“38 contracting entities and, at the same time, donors of public subsidies were also identified, which allowed the conclusion of €0.4 million in public contracts (through direct award) and the payment of €2.9 million in subsidies to the same 38 contractors/beneficiaries,” the subject of contracts and purpose of support indicate. To the possibility of double financing for the activity.

Data recently released by the Internet Governance Forum indicate that in 2023, €8,003 million in public subsidies were allocated, with no information yet on compliance with legal requirements.