The prime minister of Portugal, António Costa, says he has quit his job because investigators searched his home to look into possible corruption.
He said he was not accused of a crime, but he felt that the investigation would make it impossible for him to continue working in his job.
Prosecutors are looking into the rewards given for lithium mines and hydrogen production.
Five people have been taken into custody, as reported by the Público newspaper.
According to Público, there are two individuals who are considered to be close to Mr. Costa, including his chief of staff Vitor Escaria and a business consultant.
Infrastructure Minister Joao Galamba has been accused as part of the investigation into energy deals.
The prime minister said on Tuesday that suspicion about his honesty, behavior, or involvement in any criminal activity is not appropriate because it goes against the respect and importance of his role.
He said he was not expecting the corruption investigation, but promised to work with it.
“He said that there is no bad thing that makes me feel guilty, or any action that deserves criticism. ”
After Costa appeared on TV and spoke, President Marcelo Rebelo de Sousa mentioned that he agreed to let him leave his position.
Around 140 detectives searched his home, along with 17 other houses and 25 other locations, including the office of the prime minister’s right-hand person and two government departments.
They also looked into the government buildings in Sines, which is a port known for investing in hydrogen as a source of energy.
The main stock index in Portugal, called PSI 20, went down by nearly 3% as the political crisis unfolded.