Portugal's EDP says headquarters searched in tax investigation

Portugal's largest utility EDP on Tuesday said its headquarters had been searched as part of an investigation into alleged tax fraud related to the multibillion-euro sale of six dams to French company Engie . In December 2019 EDP agreed to sell six hydroelectric power plants in the Douro basin to an international consortium led by Engie for 2.2 billion euros ($2.60 billion).

Portugal's largest utility EDP on Tuesday said its headquarters had been searched as part of an investigation into alleged tax fraud related to the multibillion-euro sale of six dams to French company Engie .

In December 2019 EDP agreed to sell six hydroelectric power plants in the Douro basin to an international consortium led by Engie for 2.2 billion euros ($2.60 billion). The sale process was concluded a year later. Over recent months Portuguese opposition lawmakers have accused EDP of setting up a financial scheme to avoid paying more than 100 million euros in stamp duty taxes.

An EDP spokesperson said the group's headquarters in Lisbon had been searched but that the company believed it had done nothing wrong. "EDP is fully cooperating with the authorities and remains convinced that the sales operation complies with all legal requirements," the spokesperson said.

In a statement, Engie said it was fully cooperating with the authorities but would make no further comments on the matter. Finance Minister Joao Leao in March told a parliamentary committee that the tax authority was working on the case and gathering "preparatory elements" to force EDP to pay the taxes if they find out the company used loopholes to avoid the payment.

EDP said the way the sale had been organised was intended to guarantee the dams would continue to operate smoothly and not to avoid taxes.

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