Lisbon housing funds allegedly diverted to Web Summit, claims Socialist candidate
Alexandra Leitão, a leading Socialist Party (PS) candidate for the Lisbon Municipal Council, has accused Mayor Carlos Moedas of reallocating millions of euros from the municipal housing company, Gebalis, to cover rising expenses for the Web Summit. The accusation was made in a public statement, where Leitão asserted that this move jeopardizes necessary interventions in the city's social housing neighborhoods.
According to Leitão, the Moedas administration is preparing to withdraw approximately €3 million from program contracts with Gebalis. She claims these funds are being redirected to finance a €5.6 million increase in the budget for the Web Summit. This follows a recent transfer of €4.6 million from the central government to the municipality, which was specifically earmarked for reinforcing projects in municipal housing districts.
In her statement, the former minister argued that this represents a critical misallocation of public funds. "This situation confirms that mandatory and predictable expenses, like the Web Summit, were under-budgeted and are now being paid with verbas that should serve to improve the life of families in municipal neighborhoods," Leitão declared. She characterized the decision as a repeated error in governance, referencing a past controversy where funds were allegedly moved from the public transport company, Carris, to the Web Summit budget.
The political dispute highlights differing views on the city's spending priorities. The Moedas administration has championed the Web Summit as a major driver of international investment and technological innovation in Lisbon. However, the Socialist opposition contends that this focus comes at the expense of essential public services and social support, particularly in the critical area of housing.
Leitão directly challenged the mayor's commitment to social housing, referencing statements from the Gebalis leadership. "The president of the board of directors of Gebalis has always affirmed that the company could execute as much as the financial resources that were allocated to it," she noted. This led her to question Mayor Moedas directly: "What interventions by Gebalis are being compromised? What works will no longer go forward?"
The controversy brings to the forefront the ongoing debate in Lisbon about balancing large-scale international events with the pressing needs of its residents, especially concerning the housing crisis. Gebalis is responsible for the management and maintenance of thousands of homes in municipal neighborhoods, and any reduction in its budget could have a direct impact on the living conditions of many families.
The mayor's office has not yet issued a formal response to Leitão's accusations. The proposal for the budget reallocation is expected to be discussed and voted on in an upcoming municipal assembly meeting, where further debate is anticipated. The outcome will be closely watched by residents and political observers as an indicator of the current administration's policy direction regarding housing and urban development.
This political friction occurs within the broader context of Lisbon's strained housing market, where issues of affordability and housing availability are dominant public concerns. The allocation of municipal funds is a key lever in addressing these challenges, making any decision to divert housing-related funds a matter of significant political and social importance.
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