[QODLink]
Europe

Spain's ex-treasurer jailed for corruption

Judge jails former treasurer of ruling party without bail for failing to explain funds held in Swiss bank accounts.

Last Modified: 28 Jun 2013 02:32
Email Article
Print Article
Share article
Send Feedback
Luis Barcenas was first put under criminal investigation in 2009 [EPA]

A former treasurer for Spain ruling People's Party has been sent to jail without bail as the High Court continues a pre-trial investigation into corruption charges against him.

Judge Pablo Ruz said on Thursday that Luis Barcenas, who worked for the People's Party accounting department for almost three decades, had failed to explain the origin of up to 48m euros held in Swiss bank accounts.

Barcenas is charged with money laundering, bribery, tax fraud and other crimes in Ruz's investigation of a group of businessmen who put on campaign rallies and other events for the People's Party in exchange for kickbacks.

He said that Barcenas was a flight risk and could also pressure witnesses or destroy evidence.

Barcenas is the central figure in two major corruption scandals that have damaged the credibility of the ruling party and angered Spaniards who are struggling with a deep recession and high unemployment.

But the 55-year-old has repeatedly said he is innocent of the charges against him and that his money came from legitimate business activities.

His lawyer Alfonso Trallero said he would file an appeal to try to get his client out of jail, El Pais newspaper reported.

Closed-door hearing

Ruz wrote in his 24-page order that he had unearthed up to 48m euros in bank accounts linked to Barcenas in Switzerland and other countries.

In the order, the judge also said that Barcenas had falsified documents and invented art deals to try to hide the source of the money.

Barcenas appeared before Ruz on Thursday in a closed-door hearing to answer questions regarding new accounts that were discovered in Switzerland and about the art deals.

Barcenas' explanations have been "partial, inconsistent and manifestly insufficient regarding the activities and movement of assets in his Swiss accounts, which he himself has been involved with", the judge wrote in his order.

The former treasurer has been under investigation off and on for more than four years over the kickbacks inquiry, which Ruz said was approaching the trial phase. As an examining magistrate, Ruz both investigates the charges and presides at trial.

The anti-corruption prosecutor has asked the judge to order Barcenas to put up 28m euros in guarantees to cover potential fines should he be convicted.

Slush fund case

In a separate case Barcenas is also under investigation for allegedly running a People's Party slush fund that took donations from construction magnates and redistributed them in cash payments to party leaders.

In January, El Pais published excerpts of two decades of handwritten accounts - now known as the 'Barcenas Papers' - allegedly recording movements of cash in and out of the secret fund.

Prime Minister Mariano Rajoy, former Prime Minister Jose Maria Aznar and other top People's Party officials whose names appear in the Barcenas Papers have repeatedly denied receiving illegal payments.

Some party leaders have said the party paid them fixed expenses that were legal and reported on their tax declarations.

"As always the People's Party manifests its respect for judicial decisions in all proceedings," the party said in a one-line statement on Thursday.

Barcenas left the party in 2009, when he was first put under criminal investigation, but continued to receive severance pay on an instalment plan until early this year.

552

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
Organisation
Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
China President Xi Jinping's Mongolia visit brings accords in the areas of culture, energy, mining and infrastructure.
An estimated 36 people die each day in embattled town where pro-Russia rebel separatists fight Ukrainian soldiers.
People are starving in southern Somalia while relief efforts are blocked by government and rebel fighting.
Some scientists say authorities in favour of nuclear energy tend to deny the negative results of researchers.
Report on child sex abuse in British Asian community highlights issues that may affect the entire nation.
join our mailing list