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Former president of Madrid Regional Community arrested on corruption charges

Xinhua, April 19, 2017 Adjust font size:

The former president of the Autonomous Community of Madrid Ignacio Gonzalez of People's Party (PP), was detained by Spanish Civil Guards on Wednesday as part of an anti-corruption operation.

Gonzalez was detained at his home in relation to the diversion of funds from the Madrid Public water management company "Canal de Isabel II". The case is related to the purchase of "Inassa" which is Canal de Isabel II's subsidiary company in South America, for 10 times the price the seller had paid for it a year earlier.

The "El Confidencial" newspaper reports that in the year 2001, the Madrid Regional Authority paid 73 million U.S. dollars for a company which had cost just 7 million the previous year.

Gonzalez and 10 other people who have been arrested in relation to the case are accused of various charges, including influence trafficking, misuse of public funds, money laundering, false administration and belonging to a criminal organization.

The Spanish media reports that police are also searching other offices, such as those of construction company, OHL and the Agency for the Digital Administration for the Community of Madrid, as well as the office used by Gonzalez since his retirement from politics.

Among other crimes which are being investigated is the allegedly fraudulent purchase of the Brazilian company, Emissao Engenharia e Construcoes by Canal Isabel II.

This purchase of a company with debts estimated to reach 35 million euros (37.54 million dollars) was denounced to prosecution services by the Spanish Socialist Party, Podemos and Ciudadanos. The three parties jointly presenting a report in the assembly of the Madrid Autonomous Community, highlighting presumed irregularities in the deal.

This was the last of a series of purchases made by the company in Latin America under the mandate of three Regional leaders, Alberto Ruiz Gallardon, who would later become Mayor of Madrid and Minister for Justice, Espernaza Aguirre and Gonzalez. Enditem