The Council of Ministers has extended the transitional regime of the social mobility subsidy this Saturday. Residents in these autonomous regions will continue to receive the same mobility allowance until March 2025.
The Government of the Republic led by the social democrat Luís Montenegro, stated that this meeting approved the decree law. A text from the conclusion of the meeting reads
“A Decree-Law that extends until March 31, 2025 the transitional regime for the allocation of the social mobility subsidy”.
The document states the objective of this law is to enable the working group to reform the social mobility subsidy system. This group will define appropriate measures for the autonomous regions of Madeira and the Azores.
History 0f the Portugal Mobility Subsidy
The mobility subsidy scheme started back in September 2015 for Madeira. According to this scheme the residents have to pay 86 euros for a round-trip flights to mainland Portugal. This account was 65 euros for the students. In Azores however, the cost was set to 119 euros. Moreover, these amounts would increase if they exceed the maximum refundable ceiling of 400 euros.
The law states that the residents of Madeira must pay the full amount of the trip at the time of purchase. They can later receive the subsidy at CTT offices using documents proving the trip made. The reimbursement period is 90 days if payment is made using a credit card.
The recent Mobility Subsidy Extension is not the first one. It was already extended by the Council of Ministers on December 27, 2023. This extension was coming to an end on July 31, 2024.
The social democrat Miguel Albuquerque, president of the Regional Government of Madeira, suggested on May 7th that the social mobility subsidy should be reviewed. He argued that the social mobility subsidy should be reconsidered, suggesting that users only pay the face value of the trip. Albuquerque said:
“A fund must be created by the State that guarantees that all residents who want to travel will pay the face value [of the subsidized ticket].”
Operation Rota do Viajante: Fraud Investigation and Arrests
The Judicial Police arrested five people and conducted 71 searches. This operation targeted the Autonomous Region of Madeira and the Lisbon metropolitan area. It was part of an investigation into fraud against the State via the social mobility subsidy.
The Judicial Police told that the searches were done in Lisbon, Loures, and Madeira. They especially targeted Funchal, Santa Cruz, and Câmara de Lobos. This was the second phase of Operation Rota do Viajante, led by DIAP of Loures.
The investigation revealed that the defendants aimed to obtain large illegitimate economic benefits. They planned to create a scheme to profit from the social mobility subsidy. Judicial Police revealed that they claimed hundreds of non-existent trips, resulting in undue reimbursements exceeding half a million euros.
The PJ revealed that the defendants recruited Madeira residents to help. These residents provided them with falsified documents such as airline tickets and receipts. These individuals, accompanied by members of the criminal network, presented the documents at CTT offices on the mainland to receive reimbursements from the State.
Let’s hope that the criminals are taken down and the Mobility Subsidy remains for the benefit of the residents and the students.
According to the president of the Regional Government, the State should create a scheme similar to the one already implemented by the Madeiran executive for university students. This scheme would ensure that the subsidized ticket is paid at the face value of 65 euros.
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