April 26, 2024

Spain’s Real Crisis Is a Leadership Void, Analysts Say

But while the charge may be simple enough, the case is not. Having previously withheld information from the courts about secret Swiss accounts, the former treasurer, Luis Bárcenas, who now sits in prison, seems less than fully credible, and the courts incapable of digging to the bottom on the matter with real speed.

The result is less a crisis for Mr. Rajoy — though he is certainly damaged, polls show — than one for Spain, its national morale and the credibility of its institutions, with all the risk that the steady drumbeat of allegations will deny recession-hit Spain strong leadership and distract the government from pressing economic concerns as the scandal unspools for years, analysts say.

In fact, Mr. Rajoy’s best defense may be to stonewall and string out the corruption case beyond the end of his scheduled mandate in 2015 and the next election. Given Spain’s overburdened courts, that should not be hard to do.

“Rajoy is the ultimate resistance fighter and he has clearly decided that time will play in his government’s favor,” said José Ignacio Torreblanca, a political columnist and head of the Spanish office of the European Council on Foreign Relations, a research group.

Still, Mr. Torreblanca suggested that Mr. Rajoy was making “a big mistake” if he resorted to stalling tactics in an attempt to keep political pressure at a minimum.

“A prime minister should not only ask people to trust him but instead present a credible story about exactly what happened when faced with such accusations,” Mr. Torreblanca said.

This week, however, the Popular Party rejected a call from opposition parties for Mr. Rajoy to appear in Parliament and explain exactly how the party’s finances had been managed by Mr. Bárcenas. Meanwhile, prosecutors started naming senior Popular Party officials whom they want to appear as witnesses in the case, led by María Dolores de Cospedal, the secretary general of the party.

Mr. Bárcenas was first subpoenaed in 2009, as part of what then appeared to be a mundane graft investigation into whether a group of businessmen had bribes to receive contracts from conservative mayors and regional politicians. He denied at the time ever having had money in Switzerland.

Since January, investigators have unearthed at least €47 million, or $61.4 million, that he allegedly stashed offshore, in Switzerland but also possibly in the United States and other countries. Mr. Bárcenas is next scheduled in court on Monday, and with each appearance speculation mounts that he will turn on his former party colleagues, as they turn on him.

Mr. Bárcenas reportedly left his job as treasurer in 2009 with a trove of documents. This week, the newspaper El Mundo published ledgers that it claimed were the party’s parallel financial accounts, mirroring allegations made in late January by another Spanish paper, El País.

Mr. Bárcenas is being held in a prison outside Madrid since a court judged him to be a flight risk in June. After visiting his friend on Monday, Miguel Duran, a lawyer, told RAC1 radio that Mr. Bárcenas had told him “interesting things.”

“He has enough information to make the government fall,” Mr. Duran said ominously.

Mr. Rajoy and other senior party officials have denied wrongdoing, as has Mr. Bárcenas. Increasingly the scandal boils down to their word against his. Senior party officials have now sought to isolate and even disparage their former colleague, at the risk that Mr. Bárcenas will become even looser with his years of accumulated knowledge of the inner workings of the Popular Party.

By Thursday, Mr. Bárcenas was being called “a delinquent” by Alfonso Alonso, the party’s parliamentary spokesman, “for whom lying has become a way of life.” At the same time, Mr. Alonso acknowledged that “there has been a corruption ring, which is what we want the judiciary to clarify.”

Article source: http://www.nytimes.com/2013/07/13/world/europe/spains-real-crisis-is-a-leadership-void-analysts-say.html?partner=rss&emc=rss

Prime Minister of Spain Accused of Receiving Payouts

On Thursday, El País, Spain’s leading newspaper, published what it said were excerpts from the party’s financial accounts that showed regular payouts to leading party members above their official salaries. Mr. Rajoy first appeared in the ledgers in 1997 and received sums averaging $34,000 a year through 2008, the newspaper said. The money, it said, came from “donations” from companies, particularly construction companies.

Former party treasurers, including Luis Bárcenas, who has been at the heart of the scandal, are suspected of maintaining the ledgers. Two weeks ago, the Swiss authorities informed Spanish investigators that Mr. Bárcenas had deposited as much as $29 million in Swiss bank accounts. El País, which said it gained access to the Popular Party’s internal accounts from 1990 to 2008, said that Mr. Rajoy declined to comment on its report until internal and external audits ordered by him into the party’s finances were complete. The audits were ordered after news of the Swiss accounts emerged.

But the report is certain to compound the troubles facing his government as it tries to navigate Spain’s economic crisis in a climate of increasing anger and suspicion from the public of all politicians, as scandals related to Spain’s boom years before the 2008 economic collapse come to light in all corners of the country.

“For Rajoy, whether the claims about illegal funds prove true or false, this is incredibly damaging because it weakens not only his party but his whole government at a very delicate moment in terms of trying to ensure Spain’s economic recovery,” said Fernando Seco, director of the Fundación Antares Foro, a policy debate forum in Seville. “If the Popular Party cannot shed light and justify its funding, we could enter a new period of political uncertainty.”

On Thursday, María Dolores de Cospedal, the secretary general of the Popular Party, denied that the party maintained a parallel account, saying at a news conference in Madrid that “the Popular Party only has one set of accounts, and it is clean, transparent and submitted to the official accounting authority.”

El País reported that Ms. de Cospedal was listed in the ledgers as having twice received payments of about $10,000 in 2008, after she was confirmed to her post at the party’s convention that June.

During a parliamentary debate on Wednesday, Mr. Rajoy made no mention of Mr. Bárcenas while he urged lawmakers to agree on a more transparent system of party financing. But that did nothing to quiet demands for a fuller explanation.

“Mr. Rajoy will now have to give some kind of clearer explanation,” said Gaspar Ariño Ortiz, a lawyer in Madrid and former member of Parliament from the Popular Party.

In the context of a recession and record unemployment, Mr. Ariño Ortiz said, “citizens who are struggling to make ends meet are seeing that huge amounts of money have been handled within a Spanish party funding system that is completely obscure, anonymous and open to corruption.”

Mr. Bárcenas, the former party treasurer, resigned in 2009 after being indicted in the early stages of a continuing investigation into a scheme of kickbacks and illegal payments that other Popular Party politicians are accused of being involved in. He has denied wrongdoing, and through his lawyer, he denied ever keeping a parallel and undeclared set of books in order to make payments to politicians.

When he resigned, Mr. Bárcenas took nine boxes of documents with him from his offices, a trove that stands as an implicit threat to party officials, commentators say, that if he is taken down in the scandals, he plans to take others with him. The recent disclosure that Mr. Bárcenas kept vast sums of money in Switzerland is just one of about 300 corruption investigations being conducted in Spain, many linked to questionable deals made among bankers, developers and politicians during the nation’s decade-long property boom. Few have been convicted so far.

The corruption investigations have also tainted Spain’s institutional fabric, from the monarchy to the Supreme Court, whose chief justice was forced to resign last year over questionable business expense claims. On Wednesday, a judge demanded that Iñaki Urdangarin, the son-in-law of King Juan Carlos, and his former business partner post bond of $11 million as the judiciary deepens its investigation into the possible embezzlement of millions in public money allocated to sports and tourism events.

Mr. Urdangarin has not been formally charged, but last year he became the first member of the royal family to appear in court in modern Spanish history.

The report in El País added to the disillusionment of many Spaniards, including some longstanding supporters of the Popular Party. One was Julian Acevedo Ruiz, a grocery store owner who said he had always voted for the party, including Mr. Rajoy in 2011.

“I wish that I had never voted,” he said, “because really none of our politicians are worthy of the trust that we placed in them.”

Article source: http://www.nytimes.com/2013/02/01/world/europe/prime-minister-of-spain-accused-of-receiving-payouts.html?partner=rss&emc=rss