Judge investigating fraud in SNS health service hones in on executive pay increases

Portugal’s health sector anti-fraud commission is investigating salary increases approved at the country’s shared hospital services organisation (SUCH) amid suspicions that senior executives may have authorised pay rises from which they personally benefited.

The investigation is being conducted by the Commission for Combating Fraud in the National Health Service (CCF-SNS), chaired by prominent investigating judge Carlos Alexandre. It centres on a January 2023 decision by the board of the Serviço de Utilização Comum dos Hospitais (SUCH).

According to Correio da Manhã, investigators are examining whether the salary revisions approved for senior technical staff were unlawful because they included increases for board members who voted on them.

The newspaper reports that then-SUCH president Paulo Sousa received a monthly increase of €484 in his salary as a senior technical employee, while executive board member Joel Azevedo’s monthly remuneration rose by €1,200. Following the revision, both reportedly received a monthly salary of €4,510 in their roles as senior technical staff.

The decision under scrutiny was approved at the board’s first meeting of 2023, held on January 4, according to board minutes cited by CM.

The report also states that Paulo Sousa signed the comparative salary schedule showing remuneration before and after the increases – a document that included both his own name and that of Joel Azevedo.

Investigators are seeking to determine whether board members approving salary increases that also benefited themselves constitutes a conflict of interest under Portuguese public sector and state-owned enterprise rules.

Responding to the allegations, Paulo Sousa said he would reserve comment while the investigations are ongoing. He noted that both a preventive audit by Portugal’s Health Inspectorate (IGAS), ordered by parliament, and the CCF-SNS investigation are underway.

Joel Azevedo declined to comment, referring enquiries to Paulo Sousa.

SUCH’s current board also said it would not comment while the IGAS audit and the anti-fraud commission’s investigation remain in progress.

The inquiries cover the management of SUCH over recent years. The organisation is a non-profit public utility association overseen by Portugal’s finance and health ministries that provides shared support services to public hospitals to improve the efficiency of the SNS National Health Service – an organisation forever under fire for perceived inefficiency.

Source material: Executive Digest/ Correio da Manhã

Natasha Donn

Journalist for the Portugal Resident.