On December 10, 2024, the Policia Judiciaria (PJ) conducted a significant operation named 'Cash Flow,' resulting in the arrest of two suspects linked to alleged fraud involving approximately seven million euros in European Union funds.

The suspects are accused of forming a company to apply for European Union (EU) financial support, engaging in corruption, fraud, and money laundering, which led to substantial losses for both the Portuguese state and the EU.

Among those under investigation is Francisca Nguema Jiménez, the daughter of Equatorial Guinea's president, Teodoro Obiang, who is suspected of financing these illegal operations.

The operation involved executing 24 search warrants across various districts, including Lisbon, Porto, and Guarda, with the participation of 102 inspectors and forensic experts.

The investigation revealed that the suspects had interests in multiple commercial companies both in Portugal and abroad, utilizing the banking system to transfer funds among accounts in several countries.

The investigation uncovered that the suspects inflated expenses, created fake contracts, and hid equipment purchases to secure funding, including capitalizing a company with about 2.5 million euros from another entity in the Madeira Free Trade Zone.

The PJ stated that the submitted expenses were deemed ineligible due to their illicit nature, which disqualified the suspects from receiving the financial incentives they sought.

The inquiry is being led by the Regional Department of Investigation and Criminal Action (DIAP) in Lisbon, highlighting ongoing concerns about corruption and financial misconduct involving foreign dignitaries.

Former MEP Ana Gomes praised the arrests, noting that she had previously reported the situation to the European Commission and the European Banking Authority in 2018.

The detained suspects will face their first judicial interrogation at the Central Criminal Investigation Court in Lisbon, where coercive measures will be considered.

During the application process for EU funding, the suspects allegedly provided false and misleading information to the Agency for Competitiveness and Innovation (IAPMEI), intending to secure a higher financial incentive.