Rajoy, ruling party deny secret payments

Comment on this story


iol news pic Spain Corruptiuon

AP

FILE - In this Friday, Aug. 3, 2012 file photo, Spain's Prime Minister Mariano Rajoy reacts during a news conference at the Moncloa Palace in Madrid. Spain's governing Popular Party insists its financial accounts are totally legal and denies a newspaper report of regular under-the-table payments to leading members, including current Prime Minister Mariano Rajoy. The scandal first broke when after the National Court reported that former party treasurer Luis Barcenas amassed an unexplained euro 22 million ($30 million) in a Swiss bank account several years ago. In a statement Thursday Jan. 31, 2013, the party denied the existence of "hidden accounts" or "the systematic payment to certain people of money other than their monthly wages."(AP Photo/Paul White, File)

Madrid - Prime Minister Mariano Rajoy and Spain's ruling People's Party denied on Thursday that the party made unofficial payments from business donors to the premier and other party leaders after a newspaper published what it said were secret party accounts.

El Pais published images of excerpts of almost two decades of handwritten accounts that it said were maintained by People's Party treasurers. El Pais said the accounts showed 11 years of payments to Rajoy of 25,200 euros ($34,200) a year.

The accounts - which the newspaper said amounted to a parallel unofficial bookkeeping system - show donations from companies, mostly builders, and regular payments of thousands of euros to a number of party leaders.

“The People's Party has no knowledge of the handwritten notes that were published and of their content, and it cannot be recognised, in any case, as this political party's books,” the PP said in a statement.

The statement said the party's payments to its leaders and staff were always legal and followed tax rules. The party also denied that there were systematic payments to people other than their official paychecks.

A spokeswoman from Rajoy's office told Reuters the prime minister stood by comments he has made recently that he has not engaged in improper conduct.

High Court Judge Pablo Ruz, who is investigating a four-year-old corruption case involving the PP, has asked prosecutors to look into the allegations of secret payments to party officials and could open a new line of investigation, court sources told Reuters.

The party has ordered an external audit of its accounts.

The widening corruption scandal over alleged secret cash payments to PP leaders has hit Rajoy's popularity as he struggles with a deep recession, a fiscal crisis that could push Spain into an international bailout, and the euro zone's highest unemployment rate.

“This does not help to calm down the difficult moments that we are going through, economically, politically and the climate on the street. This is a time for maximum transparency,” Jose Antonio Monago, the president of the region of Extremadura, told reporters at a news conference regarding his region's accounts.

A recent poll by Metroscopia showed that 96 percent of Spaniards believe corruption is widespread in politics in Spain, after dozens of cases have emerged in recent years, most notably an ongoing judicial investigation into alleged embezzlement of public funds by King Juan Carlos' son-in-law.

The alleged payments may not necessarily be illegal if the party leaders declared the income in tax statements.

Until recently, Spanish political parties were allowed to receive anonymous donations. However, it would have been illegal not to book those donations in the book's official, regulated accounts, a People's Party source told Reuters.

A People's Party source, who asked not to be named, said the allegations raise serious ethical questions about party operations, especially because many of them occurred during Spain's building boom, in which politicians granted large numbers of development contracts.

“It looks like bribes, the nature of the document is very incriminating, if it's true,” the source said.

Among the companies named in the El Pais story is builder and infrastructure and energy company FCC. FCC declined to comment. A source close to the company told Reuters that FCC would carry out an internal investigation regarding possible donations.

El Pais also said the president of another builder, OHL , Juan Miguel Villar Mir, was one of the donors. OHL declined to comment.

The accounts published in El Pais were allegedly from two former PP treasurers. One of them is Luis Barcenas, who stepped down as party treasurer in 2009 when judges began to investigate his possible involvement in alleged illegal payments and kickbacks to party officials from builders and other businesses that won government contracts.

The ongoing judicial investigation of Barcenas has revealed recently that he had a Swiss bank account which at one point held as much as 22 million euros. His lawyer has said previously that the money is from legitimate businesses and that Barcenas has now declared taxes on the income.

Press officials from Spain's High Court confirmed that Barcenas' lawyer has provided to the court a document showing that in 2012 his company applied for a tax amnesty on funds in the Swiss bank account. - Reuters


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks

Business Directory