Portugal's Court of Auditors Flags Irregularities in Over 20 PRR Contracts

Court of Auditors Identifies Contractual Irregularities

Portugal's Court of Auditors (Tribunal de Contas – TdC) has revealed that over 20 contracts associated with the nation's Recovery and Resilience Plan (PRR) contain irregularities. These findings were announced on November 17, 2025, by the president of the TdC, Filipa Calvão. The identified issues are significant enough that they were not 'suscetíveis de correção 'ex post'' (not susceptible to ex post correction), meaning they could not be rectified after the contracts were already in execution.

Consequently, these cases have been advanced for the assessment of financial responsibilities. This process involves presenting the findings to the Public Prosecutor for the potential enforcement of accountability.

Special Oversight Regime and Detected Issues

The contracts under the PRR are subject to a special oversight regime, which was approved at the end of 2024. This regime grants the TdC specific powers, including the ability to halt the execution of a contract in instances of 'ilegalidades mais gravosas' (more serious illegalities). However, for other types of irregularities, the court proceeds with identifying indications of financial responsibility.

Filipa Calvão clarified that the irregularities detected in these two dozen processes necessitated the pursuit of financial responsibility due to their nature.

Context of PRR Execution and Delays

The Recovery and Resilience Plan is Portugal's strategic framework for deploying European funds aimed at economic and social recovery following the COVID-19 pandemic.

President Calvão has firmly rejected the notion that the TdC's oversight is a contributing factor to delays in the execution of European funds or the PRR. She attributed the difficulties in PRR implementation to the plan's 'bastante exigente em termos de requisitos e, depois, com um prazo muito curto de execução' (quite demanding in terms of requirements and, then, with a very short execution period).

According to the latest monitoring report from November, the execution rate of the PRR currently stands at 47%.

Next Steps and Implications

The referral of these contracts to the Public Prosecutor signifies a critical phase in ensuring accountability for the use of public funds. The outcome of these assessments will determine the extent of financial responsibility for the detected irregularities. The TdC's actions underscore its role in safeguarding the legality and proper application of European and national resources within the ambitious PRR framework.