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Spain Kickback Scandal Threatens Rajoy As 79% Find Corruption "Explanations" Weak

Tyler Durden's picture




 

Just like for Alice, Spain's farcical kickback and bribery scandal's rabbit hole just keeps getting deeper. This morning El Pais reports that the alleged providers of payments to the government (via the kickback fraud) - known as 'Gurtel' - received an unprecedented EUR115mm in government contracts. With more than 70 people facing charges ranging from money laundering to bribing a public official, Rajoy's efforts at coming clean have fallen on deaf ears as 79% of Spaniards are dissatisfied with the explanations. This follows a weekend of disclosures including the fact that Rajoy gave himself a 32% pay rise up to 2011 as he push austerity down the throats of his people. As El Pais notes, "...The only thing that is clear is that most of the recipients of payments on the former treasurer’s list have admitted that they accepted money in cash...." The sad political truth is, as Deutsche notes, the likeliest course of action at this stage, in our view, is that on the basis of the internal investigation, Rajoy may go as far as letting go some members of his cabinet, but we think that he will protect the “hard nucleus” of his administration and will not resign. It appears, as they note, that the Spanish government's room for maneuver (over further austerity) is significantly diminished.

 

Via El Pais (weekend),

Between 2006 and 2011, Rajoy’s salary from the Popular Party (PP) rose from an annual gross 146,000 euros to 200,000 euros,

 

...

 

On Saturday, Rajoy did not mention Bárcenas’ papers. He merely said he never took black money, yet did not deny that payments were made. But Bárcenas’ ledgers show that secret payments to party leaders ended in 2008, precisely when Rajoy began declaring significantly more income from the PP.

 

...

 

About 79% of polled are dissatisfied with Rajoy’s explanations in reaction to government corruption allegations, according to a Metroscopia poll for El Pais newspaper

 

96% say corruption allegations should be considered and studied seriously

 

72% say politicians involved in allegations should resign

 

...

 

"...The only thing that is clear is that most of the recipients of payments on the former treasurer’s list have admitted that they accepted money in cash...."

 

Via El Pais (today),

The benefit of a few was to the detriment of the many. The corrupt business ring known as Gürtel obtained over 115 million euros in contracts from public agencies as well as local and regional governments under Popular Party (PP) rule, according to an ongoing investigation.

 

That is without counting all the private contracts that the PP awarded the business conglomerate headed by Francisco Correa ("correa" translates as "belt" in English and "Gürtel" in German). The ransacking of taxpayers' money could be even greater, though, as the investigation has not concluded yet, four years after Correa's arrest.

 

More than 70 people face charges ranging from money laundering to bribing of public officials in a major case of political corruption involving the PP.

 

The investigation shows that the hefty profits were shared out among members of the ring and some of the politicians who helped them secure the contracts.

 

Millions of euros were also concealed from the tax authorities. Correa has declared himself without income for the last 12 years, and is thought to have cheated the state out of an estimated 18 million euros in income tax alone between 2002 and 2007.

 

The regions of Madrid and Valencia were the ring's main theater of operations. The towns of Majadahonda, Boadilla, Arganda and Pozuelo de Alarcón, outside the capital, were havens of corruption for years, according to the report. In Majadahonda alone, Gürtel businesses were awarded nearly 3.5 million euros' worth of public contracts between 2001 and 2005.

 

The Gürtel network first came to light in 2009, when EL PAÍS obtained information on a judicial investigation being led by the since-suspended Judge Baltasar Garzón. The highest-profile trial related to the probe was that of former Valencia premier Francisco Camps, who was acquitted of taking bribes by a jury.

Deutsche Bank's thoughts on the process and outcome:

Rajoy is fighting the allegations - denying the accusation and threatening judicial action against those making those allegations and making public his own financial records. The whole matter is now no longer a merely journalistic event, but has moved to a judicial investigation - the original documents published by El Pais have been transmitted to the Madrid tribunal. The proceedings could take several months, maybe more. ABC newspaper on 8 February reported the following statement by Spain’s attorney general, Eduardo Torres-Dulce: “Justice needs to go fast, but not impossibly fast”. In the meantime, PP is conducting an internal investigation.

 

The likeliest course of action at this stage, in our view, is that on the basis of the internal investigation, Rajoy may go as far as letting go some members of his cabinet, but we think that he will protect the “hard nucleus” of his administration and will not resign.

 

Still, in any case, we think that the room for maneuver of the Spanish government has significantly diminished. In particular, the capacity for Rajoy to “sell” additional austerity measures or transitorily painful structural reforms is now lower.

 

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Mon, 02/11/2013 - 12:59 | 3233700 LongSoupLine
LongSoupLine's picture

Ha Haaaa!

 

I fucking hope you hang by mob you fucking crook.  Let all crooked fucking pieces of shit politicians take notice.  Your day is coming you bank supporting crony fucking pig shit eating pukes.  Fuck off.

Mon, 02/11/2013 - 13:23 | 3233776 AlaricBalth
AlaricBalth's picture

LSL,
I thoroughly enjoy and respect your consistency. Your anger filled diatribes transcend borders, race, vocation and political affiliation. You are truly, an equal opportunity skeptic.
:-)

Mon, 02/11/2013 - 13:32 | 3233812 espirit
espirit's picture

Hey, road flares and gasoline worked ok in Iceland.

Mon, 02/11/2013 - 13:00 | 3233704 Seasmoke
Seasmoke's picture

people have lost their heads over much less

Mon, 02/11/2013 - 13:03 | 3233712 Benito
Benito's picture

I'm Spanish & still live in Spain. Rajoy is a sociopath and this country is a sad joke.

Mon, 02/11/2013 - 13:19 | 3233760 Ricky Bobby
Ricky Bobby's picture

When is the rebellion going to start?

Tue, 02/12/2013 - 00:52 | 3235810 thisandthat
thisandthat's picture

As soon as siesta time is over.

Mon, 02/11/2013 - 13:29 | 3233791 Kaiser Sousa
Kaiser Sousa's picture

with all due respect sir...

just how long r u and ur fellow spainards gonna allow this cocksucker mother fucking banker bitch to continue to bend ur brethren over backwards on behalf of his sociopath banker overlords...

why arent u taking it to the streets and when those police goons start wielding those batons sticka pitch fork thru their fucking pleixglass helmets....

come on man, u gonna wait til unemployment for the future generation is 98%????????

there just fucking politicians and bankers man...GET FUCKING BUSY!!!!!!!!!

Mon, 02/11/2013 - 13:06 | 3233719 Tortuga
Tortuga's picture

Pobrecito's. Just learned that word on Dora. What DA's these Spanish Politicians are. They couldn't figure out that all they had to do was direct Stimulus money to the business'es and then declare bankruptcy after giving themselves large bonuses then hiring their nephews and nieces to oversee the bankruptcies while being paid large salaries. OR setting up campaign websites that take donations that are not recorted/reported. Morons. They should hire an ex-democrat money man, it'll cost them but hey, it's not their money. My guess is no convictions and they all go to work for GS.

Mon, 02/11/2013 - 13:06 | 3233725 I need more cowbell
I need more cowbell's picture

His reign in Spain is plainly on the wane ( back by popular demand )

Mon, 02/11/2013 - 13:07 | 3233726 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Throw him in a ring with a pissed off bull. Justice Spanish style.

Mon, 02/11/2013 - 13:15 | 3233749 LongSoupLine
LongSoupLine's picture

...with a pissed off bull

 

 

With fucking Cramer??  Holy shit.

Mon, 02/11/2013 - 21:06 | 3235289 Dead Canary
Dead Canary's picture

How about a GAY bull. Huh, huh?

Mon, 02/11/2013 - 13:25 | 3233779 Bam_Man
Bam_Man's picture

"No soy un ladrón!"

Mon, 02/11/2013 - 13:27 | 3233796 dracos_ghost
dracos_ghost's picture

http://www.youtube.com/watch?v=-RvNS7JfcMM

George Costanza is in Spain now I believe.

Mon, 02/11/2013 - 13:30 | 3233805 falak pema
falak pema's picture

the Rajoy Bazooka...wow; what we now need is a Berlu Scud to hit Rome! 

Mon, 02/11/2013 - 13:41 | 3233847 youngman
youngman's picture

"Rajoy gave himself a 32% pay rise up to 2011 as he push austerity down the throats of his people. "

Pretty amazing...hes got some balls for doing this....they have no conscience..none at all...

this just lowered their tax revenues by 20% I bet..as some people just are not going to pay the crooks anymore

Mon, 02/11/2013 - 13:49 | 3233875 Dareconomics
Dareconomics's picture

Unforunately for the Spanish people, prosecutors will have to get a co-conspirator to flip if they have any hope of making these allegations stick.

http://dareconomics.wordpress.com/2013/02/10/rajoy-releases-tax-returns-...

Mon, 02/11/2013 - 13:53 | 3233889 Bam_Man
Bam_Man's picture

At least with Berlusconi the Italians don't have to worry about him being on the take since he already owns half the country. And then there is also the "entetainment factor".

Mon, 02/11/2013 - 14:52 | 3234119 americanspirit
americanspirit's picture

Diogenes would be running out of lantern fuel in Spain about now.

Mon, 02/11/2013 - 15:27 | 3234265 From Germany Wi...
From Germany With Love's picture

NEWSFLASH

EU to quasi-extend ESM to non-Euro countries:
http://translate.google.de/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=U...

Basically they are intending to use a structure similar to the ESM for non-Euro countries.

Tue, 02/12/2013 - 01:22 | 3235866 thisandthat
thisandthat's picture

It's like Oprah, only better: everybody at home also gets the prize! Wee!!!!!!

Mon, 02/11/2013 - 16:29 | 3234544 trendybull459
trendybull459's picture

interesting,what would be happend when people psihology stop to receive money politicians develue,my question is how one of them will drive cab and later to pay?Options:

1.Miniet

2.Standing in pose which subject to "shrimp"

Hurra,I won,the otion 3 won,option 3:big under ass bite by leg!

Visit us friends and vote and share your visions:http://trendybull777.blog.com/about/

Do NOT follow this link or you will be banned from the site!