Madeira Marketing Contract Annulled Over €11M Concealed Value, Tribunal Cites Fairness Concerns

August 19, 2025
Madeira Marketing Contract Annulled Over €11M Concealed Value, Tribunal Cites Fairness Concerns
  • The contract's announcement was published in the Official Journal of the European Union and the Diário da República, which discouraged other potential bidders from participating.

  • Nova Expressão, based in Lisbon, has recent contracts with the Portuguese government worth several million euros, including projects related to waste management communication and legal dispute advertising.

  • The Tribunal of Accounts annulled a contract between the Madeira Promotion Association and digital marketing agency Nova Expressão due to irregularities in the tender process, which concealed the true contract value that could reach up to 11 million euros, while only 170,000 euros was publicly announced.

  • The annulment was based on concerns over transparency and fair competition, highlighting that the limited pre-qualification process and the lack of a public tender compromised the integrity of the procurement.

  • This decision underscores broader issues regarding transparency in Madeira's regional promotional campaigns and the potential misrepresentation of contract values to limit competition.

  • The bidding process was limited by pre-qualification and launched shortly before Christmas, which resulted in only Nova Expressão submitting a bid, raising questions about the fairness of the process.

  • The contract aimed to promote Madeira as a tourist destination and was awarded through a limited process, criticized for lacking transparency and restricting competition.

  • The Tribunal questioned why a more open public tender was not used, suggesting that a transparent competition would have been more appropriate.

  • The association justified the limited process by citing the need for an agency with prior experience on specific digital platforms and market volatility, but the Tribunal rejected this reasoning, emphasizing that all expenses must be included in the contract value.

  • The discrepancy between the announced contract value of 170,000 euros and the potential expenditure of up to 11 million euros was deemed a serious violation of public procurement laws.

Summary based on 2 sources


Get a daily email with more World News stories

Sources

More Stories