Spain’s PM ‘was at level one’ in scheme to rig public contracts, defendant in graft case says

Spanish Prime Minister Pedro Sánchez headed a criminal organisation that rigged public contracts and illegally funded his Socialist party, a defendant in a trial that has threatened the government told a court on Wednesday.

The trial of Sánchez's former right-hand man, José Luis Ábalos, is just one of several investigations into alleged corruption by the Socialist premier's family and ex-political allies that have rocked his fragile minority coalition.

Ábalos, a former transport minister and Socialist heavyweight who helped propel Sánchez to power in 2018, is accused of earning kickbacks for the irregular awarding of contracts for face masks at the height of the COVID-19 pandemic.

Prosecutors say Ábalos abused his position in government to allow businessman Víctor de Aldama to land the lucrative contracts, with ex-adviser Koldo García acting as an intermediary.

Ábalos and García have consistently denied the allegations.

Aldama, who was released from custody before the trial after cooperating with the investigation, told the court that some of the profits from the scheme funded the Socialists.

"If there is a hierarchy in this case," Sánchez "was at level one," followed by Ábalos and García, said Aldama, who had already levelled such accusations at the prime minister.

"Thank you very much for everything, I know exactly what you are doing and I just wanted to thank you," Aldama quoted Sánchez as telling him during an encounter.

Aldama said he was surprised by the "closeness" of the prime minister and García. He told the court Ábalos' former adviser said Sánchez "owes me a lot and he knows why."

Aldama finished testifying on Wednesday after more than six hours on the stand.

The trial is expected to resume on Thursday at 10:00 am local time.

Sánchez has always denied illegal financing of the Socialist party.

Senior Socialist official Rebeca Torro slammed Aldama's "slander" on X, saying that he "has turned lies into his defence strategy. It's been two years now of accusing without evidence."

Succession of scandals

Prosecutors are seeking 24 years in jail for Ábalos on charges including bribery, embezzlement, influence peddling and membership of a criminal organisation.

Ábalos allegedly received cash and favours he used to finance a sumptuous lifestyle, including family holidays and a luxury Madrid flat for his now ex-partner.

Since the trial began on 7 April, dozens of witnesses have been questioned about alleged wrongdoing, including the movement of cash in envelopes and the appointment of Ábalos' ex-lover to fake jobs in public companies.

Proceedings are scheduled to end on Thursday but reaching a sentence may take months.

The case has damaged Sánchez, who came to power vowing to clean up Spanish politics after the main conservative Popular Party (PP) was convicted in its own graft affair.

After removing Ábalos from the powerful post of Socialist organisation secretary, Sánchez picked a successor, Santos Cerdán, who is also under investigation for alleged corruption in public contracts.

The Socialists' turmoil has rocked relations with their far-left junior coalition partner Sumar and an array of fringe and regional separatist parties whose support is essential to pass legislation.

Sánchez's wife, Begoña Gómez, could go on trial for allegedly exploiting her position for private gain, in an investigation that has lasted two years and dominated headlines.

His brother, David Sánchez, will face trial in May on suspicion of being irregularly appointed to a local government post.

The PP and far-right opposition party Vox say the accumulation of scandals has exposed systemic Socialist corruption that reaches Sánchez himself, demanding his resignation and early elections.

Sánchez has rebuffed the calls and plans to see out his term until the next scheduled general election in 2027.