Resignation announced day after government blocks €100 million capital increase
Breaking news this evening is that president of Águas de Portugal (AdP) José Furtado has resigned.
The information follows hot-on-the-heels of yesterday’s news that the government is blocking a €100 million increase in capital in the company, following exactly the same amount having been paid out late last year in dividends to shareholders.
According to Observador the “last government” promised Furtado the capital increase would be coming Águas de Portugal’s way, as he himself did not agree with the dividend pay-out.
Expresso explains that Furtado felt the €100 million should have stayed within Águas de Portugal “given the heavy costs it has to bear”.
The decision to pay the ‘extraordinary dividend’ appears to have been political: it was taken on December 29 last year (when the government was in so-called caretaker mode, and arguably not meant to be making such enormous financial decisions): the €100 million “helped reinforce the surplus of €3193.5 million that the previous Finance Minister, Fernando Medina, managed to leave”, explains Expresso.
This impressive surplus whittled down to a great deal less over the course of the last few months.
Back in December, Furtado “had already considered stepping down, but chose to remain loyal to the commitment he made to the previous prime minister, António Costa”, writes Expresso.
With the change of ‘politics’, and the new government querying the “clarity” at work/ wanting to understand the company’s plans for the future, and how they might affect public accounts, José Furtado decided it was time to move on.
According to today’s reports, he formally requested his resignation last month: it is just that this formal request was only ‘communicated’ to outside sources (namely the press) today.
The official reason was that José Furtado would like to “embrace other professional challenges”.
His resignation represents yet another ‘top job’ appointed by PS Socialists changing in the advent of a new government.
Founded in 1993, the AdP group is made up of 19 companies, 13 of which manage water supply and wastewater treatment systems. The State controls all the capital through its holding company Parpública, which holds 81%, and Caixa Geral de Depósitos, which owns the remaining 19%.
