Gürtel case

The Gürtel case was a major political corruption scandal in Spain that implicated hundreds of officers of the People's Party (PP), Spain's major conservative party, some of whom were subsequently forced to resign or were suspended.

Gürtel is one of the largest corruption scandals in recent European history and was linked to related scandals, such as the Bárcenas case, which received media attention in their own right. The case came to public attention in early 2009, but for the most part, the suspects were not put on trial until October 2016.

The investigative operation was given the name Gürtel in a cryptic reference to one of the principal suspects, Francisco Correa Sánchez (''correa'', in Spanish, meaning "belt" in English, translates to ''Gürtel'' in German). Correa was a businessman who cultivated links with PP officers. The Spanish police began to investigate his activities in 2007, after a whistle-blower, Ana Garrido Ramos, provided information regarding alleged corruption in the Madrid region.

The accusations included bribery, money laundering, and tax evasion. They implicated a circle of business people led by Correa and politicians from the People's Party, although some of the evidence referred to participants by initials and nicknames, such as "Luis el Cabron". The alleged illicit activities related to party funding and the awarding of contracts by local/regional governments in Valencia, the Community of Madrid, and elsewhere. Early estimates of the loss to public finances amounted to at least €120,000,000, while some of the alleged bribes paid in return were not particularly large (for example, items of luxury clothing).

On 24 May 2018, the Audiencia Nacional, Spain's highest criminal court, found dozens of people, as well as the ruling People's Party, guilty of fraud, money laundering, and illegal kickbacks.

Judicial process

A judicial investigation was started by Baltasar Garzón, the examining magistrate of the Juzgado Central de Instrucción No. 5, the court which investigates the most important criminal cases in Spain, including terrorism, organised crime, and money laundering. Garzón had five suspects, including Correa, detained in February 2009.

Garzón was suspended as a judge in 2010, pending his own trial on a charge of exceeding his authority with regard to a case unrelated to Gürtel (his investigation into Francoist crimes against humanity). This particular suspension was eventually overturned, but it was still in force when, in 2011, Garzón was given another suspension, this time pending trial for having violated lawyer-client privilege in the Gürtel case (he had recorded conversations between detained suspects and their lawyers).

The case was reassigned to Judge . In the summer of 2011, Pedreira set bail for Correa at €15,000,000, reportedly the second largest figure in Spanish legal history. Correa's legal team appealed, saying that the amount was not based on an objective assessment of their client's wealth, as Correa's access to some accounts had been blocked, and there was uncertainty about how much wealth he held abroad. Correa was released on bail in June 2012, by which time Pedreira, who was suffering from Parkinson's disease, had been replaced by the third judge to handle the case, Pablo Ruz. Ruz reduced the sum required to 200,000 euros, a reduction reflecting not only the accused's perceived ability to pay but also the length of time he had been held on remand, which was approaching the maximum possible under Spanish law.

The investigation took a long time for various reasons, including the number of suspects and delays in receiving information from foreign banks. In 2014, Judge Ruz announced he was in a position to proceed against 45 suspects, after dividing the case into different "epochs", the first one relating to crimes allegedly committed in the period 1999–2005.After five years, judge wraps up portion of huge Gürtel corruption investigation
''El Pais'' However, Ruz had been taken off the case by the time the first part came to trial, in 2016.

Gürtel in Valencia

A case involving the Valencian branch of the alleged network went to court relatively quickly. It was known in the press as the "suitgate" affair, as it involved allegations regarding suits supposedly given to prominent Valencian politician Francisco Camps. After a partial dismissal in 2009, the Supreme Court of Spain ordered it to be reopened. In 2011, Camps resigned as Valencian premier and leader of the Valencian Partido Popular in order to avoid standing trial while in office. Camps was found not guilty in 2012,"Camps y Costa, no culpables."
''El Pais'', 25 January 2012. and the verdict was upheld on appeal. However, the case was seen as having damaged Camps' career.

In January 2018, Ricardo Costa, an ex PPCV officer, admitted that his party was financed with "dirty money". This admission became for the inquiry into "associations" of the provinces of Castellón, Valencia and Alicante.

2018 verdict

On 24 May 2018, several Spanish politicians and business people, including Correa, his lieutenant Pablo Crespo, and former Spanish treasurer Luis Bárcenas, were convicted in the Gürtel case. Correa was sentenced to 51 years in prison, while Crespo was jailed for 37 years and six months. Bárcenas, a close ally of Spanish Prime Minister Mariano Rajoy, received a 33-year sentence and a fine of €44m. Bárcenas's wife, Rosalía Iglesias, was jailed for 15 years, and Correa's ex-wife, Carmen Rodríguez Quijano, for 14 years and eight months. It was also decreed that the ruling People's Party had taken part in the kickback scheme since 1989. Of the 37 individuals charged, 29 were convicted, while 8 were acquitted. Following this, on 1 June, Prime Minister Rajoy was ousted by a vote of no confidence.

Media coverage

Prior to 2013, reactions to Gürtel often divided along party political lines, with more conservative media downplaying the significance of the allegations. Spain's highest-circulation daily newspaper, centre-left ''El País'', which traditionally supports the PSOE, won a major press award (an Ortega y Gasset) in 2010 for investigative journalism relating to Gürtel. '' Público'', a newspaper with a more left-wing stance than ''El País'', also gave much coverage to the case.

In 2013, the picture became more complicated, as the Barcenas case started dividing the electorate of the People's Party. While the conservative '' ABC'' kept toeing the party line, the centre-right '' El Mundo'' carried some of the major revelations about the case.

Corruption and transparency in Spain

It has been argued that the underlying problem is not a party political one but rather a system that does not require transparency in the awarding of contracts. Spain occupied the fortieth place in Transparency International's Corruption Perceptions Index of 2013 (having dropped from thirtieth place). In 2016, Spain's first anti-corruption commission began work.

Bárcenas papers

January 2013 saw major revelations regarding the activities of Luis Bárcenas, the former treasurer of the Partido Popular. The Spanish justice system released information from Swiss authorities regarding his financial dealings in Switzerland, and the press reported on alleged slush funds run for the benefit of the Partido Popular. The allegations of illegal party funding came initially from ''El Mundo'', Spain's leading centre-right newspaper, which is normally close to the Partido Popular. It alleged that secret donations had been used for under-the-table payments ("backhanders") to party officials.EFE
"Spain's Ruling Party to Probe Swiss Bank Account Scandal."
in ''Latin American Herald Tribune'' Citing sources within the Partido Popular, the newspaper appeared to clear its current leadership, saying that the reported payments were made between 1989 and 2009.

On 31 January, ''El País'' published facsimiles of handwritten accounts, allegedly from Barcenas' hand and detailing slush funds, which report a total of 250,000 euros illegally paid to former prime minister Mariano Rajoy."Spain corruption scandal turns up heat on PM Rajoy."
Reuters, 31 January 2013Castro, Iren

eldiario.es The alleged funds came mostly from private building construction companies, like FCC and OHL. This, if the allegations are confirmed, would raise additional questions around Spain's building boom. While the PP filed a defamation lawsuit against ''El País'' (which it subsequently dropped), it took no action against ''El Mundo''.
Attorney General Eduardo Torres-Dulce ordered the anti-corruption prosecutor to investigate any possible links between the alleged payments handed out to Partido Popular officials and case filings in the Gürtel case. In 2014, ''El País'' commented that it is hard to draw a clear line between the two cases—Gürtel and Barcenas. However, the cases are being processed separately by Spanish courts.

References

Further reading

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