Bank chairmen ordered to pay millions of euros following ‘magic’ card expenses scandal

LAST UPDATED: 23 Oct, 2014 @ 07:58
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Bank chairmen ordered to pay millions of euros following ‘magic’ card expenses scandal

JUDGES have ordered two former chairmen of Caja Madrid and Bankia to repay a total of €19 million by today or face having assets seized. 

Rodrigo Rato, former IMF chief and Bankia chairman, and Miguel Blesa formerly of Caja Madrid, have been ordered to pay the money following a credit card scandal that has rocked Spain.

Rato must pay €3 million and Blesa €16 million to the High Court on Wednesday, to cover possible civil penalties.

Lavish spending on credit cards handed out to Bankia and Caja Madrid executives and directors reached a reported total of €15.5 million between 2003 and 2012.

A total of 86 people are accused of using the ‘magic’ cards and many senior politicians have also been caught up in the scandal as well as royal officials.

It’s alleged that the cards were misused and personal expenses were put on the cards including clothing, restaurant bills, recreational travel expenses and personal withdrawals.

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3 COMMENTS

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  1. Whether the Spanish judiciary actually follow through with their threats of civil penalties this time remains to be seen but it’s pleasing to see this being taken so seriously in Spain – at least for the moment.

    If these guys had been in the UK they’d be quaking in their boots at the threat of having their knighthoods removed or at some such other meaningless chastisement.

  2. I MUST tell my Son, to get rich in Spain , after college FORGET medicine, starting up a company, financial advisement, etc… join the PP or PSOE and open a bank account in Switzerland, Caymans or Panama. etc and “be creative”. You’ll die of old age before your Appeals are rendered. If not, you’ll live at Taxpayers’ expense rent free, free food, medical costs, TV, GYM… not so bad!
    Far better than Old Age Homes YOU must pay for!!

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