The PSD had positive net results of 18 thousand euros in 2021, the year of municipal elections, against the 2.4 million euros of loss it had recorded in the previous year of local elections, in 2017. The figures are contained in the management report and accounts of 2021 that will be discussed today at the National Council of Social Democrats and to which Lusa had access.

In the introductory note, signed by the secretary general, Hugo Soares, and by the deputy secretary general Ricardo Carvalho, it is mentioned that the party spent 11.3 million euros on the municipal councils of September 2021, having received 9,000 euros as a state subsidy. 7 million euros and 500 thousand euros in funds.

“The end result consolidated [do ano de 2021] maintained a ‘surplus’ now amounting to 18,774.51 euros”, adds in the introductory note.

These numbers contrast with the 2017 accounts, the year of the previous municipal elections (which are always the most expensive elections for parties), in which the PSD registered a negative consolidated net result (loss) of 2.4 million euros, penalized by the negative impact of three million euros from the municipal elections.

The former PSD leadership, led by Rui Rio, even moved forward with legal proceedings against municipal candidates who exceeded authorized spending.

In 2017, the party’s liabilities were 14.4 million euros, a value that is around six million euros in 2021.

With regard to the accounts of the 2021 municipal elections, these generated a negative result of 1.1 million euros, which compares with the negative result of 2017 of 2.9 million euros.

Asked by Lusa about the result of the PSD’s 2021 accounts, the then deputy secretary general with the financial portfolio in the direction of Rui Rio and financial representative of the municipalities, the deputy and ‘vice’ of the bench Hugo Carneiro, considered him “a success”.

“The year 2021, a year of municipal elections, proved to be a success in terms of management, because for the first time the party left no losses for those who come next. In addition, we paid until July 2022 to all suppliers, with the exception of unauthorized expenses in the order of 116 thousand euros”, he stressed.

According to the report that will be voted today by the National Council, on 31 December 2021 the PSD had 2.9 million euros in banks and cash and around 709 thousand euros still to be received from the subsidy of local elections in which won more chambers than four years earlier (114 against 98 in 2017).

The new leadership of the PSD was sworn in in Congress at the beginning of July last year, led by Luís Montenegro.

In the 2021 municipal elections, a dispatch was sent to local structures warning that expenses that were not authorized by the headquarters would not be paid by the party, which also excluded itself, in these cases, from the responsibility of fines to be imposed by the Entidade das Contas.

In that order, it was also determined that the acquisition of goods and services related to the rental of ‘billboards’, gifts, opinion studies and polls, whether or not they were related to municipal elections, were subject to “prior authorization from the general secretariat”.

The report that will be voted on by the national councilors today includes the opinion of the National Financial Audit Commission (CNAF) – the body whose mission is to supervise the party’s accounts – which highlights “the continuous effort that has been made by the PSD in present net results”.

“It is noteworthy that, for the first time, the SIGAF (integrated municipal and financial management system) computer platform was used in the electoral process on a mandatory basis, which allowed for greater monitoring and control of the financial procedures instituted. Electoral campaign contracts were also signed for the first time with the candidacies, establishing operating rules and the respective campaign budgets”, he points out.

For this body, “with these innovations it was possible for the national headquarters to advance with funds as the allocated expenses were made, which allowed to significantly reduce the time between the realization of the expense and the payments”.

“It is also expected that the procedures introduced will lead to a drastic reduction of irregularities committed in election campaigns”, they point out.

The CNAF urges that, “despite the improvements produced by the implemented process”, this be “analyzed and improved with a view to further increasing the degree of compliance with budget execution of municipal candidacies with a view to reducing the negative result generated”.


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