Tuesday, 02 January 2024 12:17 GMT

Spanish PM Testifies Before Senate Over Major Corruption Case


(MENAFN- Kuwait News Agency (KUNA)) News Report by Hanadi Watfa
MADRID, Oct 30 (KUNA) -- Spanish Prime Minister Pedro Sanchez appears Thursday before a Senate parliamentary inquiry into a corruption case known as the "Koldo Case", in an exceptional step marking a pivotal moment in Spain's political landscape, and reinforcing the principle of executive accountability.
The Socialist Workers' Party (PSOE) leader was summoned at the request of the opposition Popular Party (PP) to answer questions about his knowledge of, or links to, an alleged corruption network accused of receiving illegal commissions in exchange for public contracts.
The appearance carries deep symbolic and historical significance as a rare instance of executive accountability before Parliament. It is the second time in Spain's democratic history that a prime minister has appeared before a parliamentary inquiry, following former Prime Minister Jose Luis Rodriguez Zapatero in December 2004.
Sanchez was called to testify following a report by the Civil Guard's Central Operative Unit (UCO), which uncovered evidence of unjustified cash payments and alleged irregularities in the Socialist Party's financing.
The Popular Party viewed the report as proof that the party's leadership was aware of the corruption network's activities, accusing Sanchez of being a "symbolic partner" in decisions related to party funding.
The main purpose of the inquiry is to determine Sanchez's awareness or possible involvement in the network's illicit activities, and why no immediate measures were taken to curb the alleged corruption.
Although Sanchez's appearance is mandatory, he is not obliged to testify or respond to questions from the committee, which includes representatives of all parliamentary groups in the Senate, where the Popular Party holds a majority. The session may last up to seven hours.
The "Koldo Case" is a criminal investigation led by the UCO into an alleged network that secured public contracts and commissions through improper means and influence within government institutions.
Key figures implicated include former Socialist Transport Minister Jose Luis Abalos and his former adviser Koldo Garcia, accused of acting as intermediaries between state officials and businesspersons. Both have been in custody for over a year.
Also named are former Socialists' Party organizational secretary Santos Cerdan, accused of managing payments and commissions, and businessperson Victor de Aldama, suspected of using political connections to secure contracts and financial gains.
UCO data indicates the network operated between 2019 and 2023, using a complex web of companies and intermediaries to receive illegal commissions worth EUR 16.5 million (approx. USD 19.2 million) in public contracts totaling EUR 60 million (approx. 69.6 million). Investigations cover 480 bank accounts.
Among the key contracts was a deal signed by the Ministry of Transport during the COVID-19 pandemic for medical masks and emergency supplies, which were later found to be overpriced and substandard.
That contract became the starting point for the broader investigation, which later revealed similar irregularities in several other government contracts.
Official investigations confirmed that certain firms received preferential treatment and inflated pricing to secure unlawful profits.
Sanchez's appearance before the Senate inquiry reflects opposition efforts to increase pressure on the government and potentially trigger a no-confidence motion or early elections, making the coming months critical for Spain's political stability. (end)
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