Portugal's Court of Auditors Faces Reform: The Announced End of Prior Approval

The Portuguese Court of Auditors (Tribunal de Contas - TdC) stands as a cornerstone of public financial oversight, its role enshrined in the constitution. The proposed legislative revision, approved by the Council of Ministers on April 9, seeks to balance the TdC's essential functions with the need for more efficient administrative processes. The core of this reform lies in the proposed elimination of the 'visto prévio,' or prior approval, for a significant majority of public contracts.

Historically, the 'visto prévio' was a safeguard in an era lacking robust internal administrative controls. However, the current landscape features strengthened internal audit mechanisms within public administration. The reform argues that these internal controls are now capable of effectively identifying and preventing irregularities in public spending before contracts are executed. Consequently, the proposal suggests that judicial intervention at such an early stage is no longer necessary for most contracts, thereby allowing administrative bodies to manage their processes more autonomously.

Furthermore, the article points out that the TdC's broad mandate and extensive powers have, at times, led to an overstepping of its bounds. The court's jurisprudence has occasionally involved subjective administrative assessments, effectively substituting its judgment for that of the responsible administrative entities. This reform aims to curb such instances and reinforce the principle that administrative decision-making authority should primarily reside with the administrative bodies themselves, while the TdC focuses on its core auditing and accountability functions.

Crucially, the reform addresses the potential for overlapping jurisdictions. Portugal's legal framework also includes administrative and fiscal courts, which possess clear mandates for overseeing administrative contracts. The elimination of the 'visto prévio' for most contracts is seen not as creating a legal vacuum, but rather as preventing duplication of jurisdiction and potential contradictions between different judicial bodies. This move is expected to lead to a more coherent and efficient system of public administration oversight, ensuring that the TdC remains a vital but appropriately scoped institution within Portugal's governance structure.