Lisbon City Council Rejects External Audit of JCDecaux Contract
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Lisbon City Council Rejects External Audit of JCDecaux Contract

The opposition in Lisbon City Council dismissed the PSD/CDS-PP leadership’s proposal for an external audit this Friday. The audit was meant to review the contract with JCDecaux for the installation and operation of advertising in the city.

Initiatives Approved by Opposition Parties

Instead, the council approved the initiatives put forward by the Bloco de Esquerda (BE), Socialist Party (PS), and Portuguese Communist Party (PCP). In a private meeting of the municipal executive, the PSD/CDS-PP proposal was put to a vote as an alternative to the BE’s proposal.

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The BE suggested an independent audit of the installation of advertising panels, which would be conducted by the National Civil Engineering Laboratory (LNEC).

Voting Outcomes

Lisbon City Council JCDecaux Contract Details
Lisbon City Council JCDecaux Contract: Voting Outcomes

A source from the municipality informed us that in the voting process, the BE’s proposal received full support from the entire opposition, including PS, Cidadãos Por Lisboa (elected by the PS/Livre coalition), PCP, Livre, and BE.

Meanwhile, the PSD/CDS-PP proposal was supported only by its own proponents, who govern without a majority. With the right-wing proposal dismissed, the Bloco initiative was then voted on and approved unanimously.

Combined Proposals for Safety

The proposals from the PS and PCP were combined into a single document. The aim was for the mayor to gather all opinions — internal or external — deemed necessary, particularly regarding road and pedestrian safety, among other factors.

This would apply to the approval of the locations and specific sizes of advertising structures in public spaces. These opinions will have to include the National Road Safety Authority, the Institute for Mobility and Transport, and the Portuguese Road Safety Authority.

This was also approved unanimously and the document noted:

“Whenever justified, determine the change in the location of installed urban furniture.”

Criticism of the Right-Wing Proposal

The proposal of the PSD/CDS-PP leadership aimed to conduct an external audit to verify the legal and regulatory compliance of all stages of the process and contract. This audit would cover everything from the preparation of procedural documents to the awarding of the winning proposal.

The leadership also pointed out that the process began in 2016, during the PS administration of the municipality.

For the PS council, Carlos Moedas attempted a diversionary tactic today to obscure his role in approving these structures. He pointed out that the proposed audit focused solely on one part of the process: the period up until the awarding of the contract, which took place six years ago and has already been scrutinized by all relevant entities.

In a note to the media, the PS reinforced:

“By limiting the audit to the past, Moedas wanted to prevent scrutiny of his own intervention in the process, which reveals pure political opportunism and boundless shamelessness. […] The only part that Moedas wanted to leave out of his audit is the execution of the contract, which is his exclusive responsibility.”

Lisbon City Council JCDecaux Contract Rejected
Lisbon City Council JCDecaux Contract Criticism

The PCP also argued that the proposal of the Social Democrat leadership was nothing more than a diversionary tactic.

They believed it aimed to shift the focus away from the PSD/CDS management’s responsibilities regarding the location and size of the advertising panels, which were not specified in the original requirements.

The PCP chose not to oppose the discussion and vote on the right-wing proposal as its own initiative, rather than as an alternative to the proposal of BE because the two addressed different areas. As a result, they opted to abstain from voting on the matter.

Moedas’ Response to Opposition

The BE accused Moedas of trying to pull the wool over the eyes” of Lisbon residents regarding the installation of the advertising panels. They claimed that by proposing an audit of the prior process for awarding the contract to JCDecaux, he was attempting to shift blame and find out who was at fault.

The proposal of BE calls for an independent audit of the execution of this contract through LNEC. This audit will prioritize the impact of advertising panels on road and pedestrian safety, as well as the installation of shelters at bus stops and public toilets.

In a statement sent to Lusa in response to the opposition, Moedas expressed regret over the blockade after the blockade approach. He noted that it has been three years [in office] in this register and emphasized that the PSD and CDS-PP have approved all proposals and initiatives on the subject.

Moedas asked:

“And a PS that we don’t understand what it wants to hide! What is the PS hiding? That is the question! For our part, we want the answers that are important to know. To know the process in detail. How we arrived at the terms of the contract approved by the PS, BE, PCP and Cidadãos por Lisboa in 2018. Those who owe nothing have nothing to fear. Because the same opposition, which approved it en bloc, does not allow it to be scrutinized. Does that make sense?”

Contract Between Lisbon City Council and JCDecaux

Lisbon City Council JCDecaux Contract External Audit
Contract Between Lisbon City Council and JCDecaux

Although the process began under the previous municipal executive, the concession contract with JCDecaux for the installation and operation of advertising in Lisbon was approved by the current council in September 2022.

The votes in favor came from the PSD/CDS-PP leadership, the PS, the PCP, and the BE, while Livre and Cidadãos Por Lisboa chose to abstain. The concession contract with JCDecaux is 15 years old. In return, the company will pay the Lisbon City Council an annual remuneration of 8.3 million euros.

The installation of up to 125 large-format digital advertising panels in Lisbon led the Automóvel Clube de Portugal (ACP) to file a precautionary measure against the Lisbon City Council and the companies JCDecaux and MOP – Multimédia Outdoors Portugal.

The ACP contends that the location and size of these panels are clearly detrimental to road safety. The contract between the local authority and JCDecaux includes several provisions:

  • 900 billboards, with at least 10% required to be digital
  • 2,000 shelters
  • 75 public toilets
  • 40 removable billboards for institutional advertising
  • A maximum of 125 large-format digital panels, which will together cover an advertising surface area of between 2,500 m² and 3,000 m²
  • 20 digital billboards and five digital panels (4×3 meters) designated exclusively for municipal information purposes.

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