Lisbon, Dec 29 (IANS): The Portuguese government has announced the resignation of Alexandra Reis, Secretary of State for the Treasury, following a scandal involving Portuguese airline TAP.

Reis received 500,000 euros ($530,000) in compensation for early dismissal from her post as executive director of TAP on Wednesday. She was then appointed as President of the public company Portugal Air Navigation (NAV).

The compensation had come under fire as the airline, which is subject to intervention by the Portuguese government, is experiencing severe financial problems and repeated strikes by employees due to salary cuts, Xinhua news agency reported.

Reis was dismissed from her government post just 25 days after taking office. Her sacking represents the eighth change to the current Portuguese government, whose term began in March 2022 under the leadership of Prime Minister Antonio Costa.

Portuguese President Marcelo Rebelo de Sousa said the dismissal was necessary to avoid "rottenness" in the state. (1 euro = 1.06 US dollars)