Alessio Ghirlanda
SPAIN’s left-wing PSOE, the ruling party in government, faces fresh scrutiny after investigators found that Prime Minister Pedro Sanchez’s former right-hand man racked up €95,000 in unaccounted personal expenses while in office.
Jose Luis Abalos, Spain’s minister of transport from 2018 to 2021, was indicted last November over charges of corruption after allegedly receiving kickbacks from private companies that were awarded state contracts during the pandemic.
Following the indictment, the PSOE submitted its ledgers to the Supreme Court judge overseeing the case. The books accounted for nearly €20,000 in expenses by Abalos – some of which were reportedly paid to him in cash – but a further €95,000 he spent between 2017 and 2021 could not be traced to any source, Guardia Civil investigators have now found.
READ MORE: Spain’s PM Pedro Sanchez slams judges for being ‘political’ over corruption probes ‘driven by far-right groups’
The new evidence against Abalos adds to an increasingly complex case which has stirred controversy over the extent of the PSOE’s involvement in the corruption scandal.
Guardia Civil investigators said the finding was “especially relevant” as it “pointed to an undeclared source of income,” adding this was “not an isolated case.”
Between 2014 and 2017, Abalos frequently withdrew cash using his credit card – but abruptly dropped the habit in 2018.
“This suggests [his] liquidity needs may have been met through a source other than bank accounts,” the Guardia Civil said in a report.
Investigators say Abalos remitted some of the funds to family members, including his ex-wife and two children, as well as two former lovers. He also funnelled part of the money into a foundation called Fiadelso, allegedly using it to pay his mortgage instalments.
In a post on X, Abalos lambasted investigators for sharing the report with the press before he was even notified it had been filed, adding the Guardia Civil was operating under “a presumption of guilt.”
He said: “In the end, it turns out they have ended up investigating my private life [and] my lifestyle, which is all I have left. This is absolutely uncalled for.”
@abalosmeco
The corruption scandal, dubbed ‘the Koldo case’ after Abalos’ personal advisor Koldo Garcia, broke out in early 2024 when the Guardia Civil officially implicated several PSOE party officials in the kickbacks scheme.
According to investigators, Abalos, Garcia, and PSOE’s former secretary Santos Cerdan allegedly received kickbacks on €500 million worth of public contracts – some awarded without a tender – for the purchase of sanitary equipment during the pandemic.
Garcia, a former nightclub bouncer, is believed to have acted as an intermediary between the companies and party officials.
READ MORE: PSOE corruption probe: Former party secretary Cerdan detained by Spain’s Supreme Court over alleged corruption
The three men have been removed from their roles within the PSOE, and now face charges including belonging to a criminal organisation, influence-peddling, bribery, and embezzlement.
To exacerbate the scandal, audio recordings obtained by the investigators allegedly capture Abalos and Garcia discussing a plan to hire prostitutes and sharing lewd comments on the women’s physical appearance.
The opposition in government reacted to the controversy by repeatedly calling for Sanchez’s resignation – but the prime minister said he was not responsible for the actions of those involved in the scheme.
Opinion polls, however, suggest the PSOE’s voting base has grown dissatisfied with Sanchez’s handling of the case.
Salvador Illa, head of Catalunya’s regional government and a close ally of the prime minister’s, has been floated as a possible successor to the party’s leadership at the next general elections.
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