BackSpain’s Princess Cristina testifies as suspect in graft case
The probe focuses on the business activities of Cristina's husband Inaki Urdangarin, and the extent to which she may have been involved
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Madrid: Princess Cristina, King Juan Carlos’s younger daughter, testifies on Saturday as an official suspect in a Spanish court investigation of money-laundering and tax-evasion allegations.
Cristina, who is seventh in line to the throne, arrived at the court in Palma de Mallorca just before 10 am to be questioned by Judge Jose Castro. The investigation focuses on the business activities of Cristina’s husband Inaki Urdangarin, and the extent to which she may have been involved.
Cristina is absolutely convinced of her innocence, her lawyer, Miquel Roca, said in televised comments to reporters last month. Rafael Spottorno, head of the royal household, has described the investigation as a martyrdom for the royal family and called on Castro to conclude his three-year investigation as soon as possible.
Today’s hearing marks the first time since the Spanish monarchy was reinstalled almost 40 years ago that a member of the royal family has faced criminal allegations in court. Support for the monarchy has declined during the investigation, amid a broader institutional crisis in the country, while the King’s deteriorating health fuels calls for his abdication.
Support for the monarchy as a system of government in Spain fell to 49.9% in December compared with 53.8% a year earlier, according to a Sigma Dos poll of 1,000 people published 5 January in El Mundo newspaper. Juan Carlos should abdicate in favor of his son Prince Felipe, 62% of respondents said.
Public money
Urdangarin, a former Olympic handball player and subsequently an executive at Telefonica SA, is a suspect of fraud, embezzlement and money laundering. The probe focuses on the non-profit Noos Institute that he chaired, which received public money, and Aizoon SL, a shell company he owned with his wife that received funds from Noos, according to court documents.
The institute won €5.8 million ($7.9 million) of contracts from the regional governments of Valencia and the Balearic Islands between 2004 and 2007 without participating in a competitive tender, ABC newspaper reported.
The allegations against Cristina hinge on her involvement and knowledge of her husband’s activities and focus on funds she may have withdrawn from Aizoon, whose ownership she shared equally with her husband. Cristina is suspected of using Aizoon for strictly personal spending, which amounted to receiving untaxed dividends from the company while reducing the firm’s taxable profits, according to the court filing.
Spending trips
Spending included trips to South Africa’s Kruger National Park and Mozambique, tickets to Rome’s Olympic Stadium and restaurant bills including children’s menus, according to the document signed by the judge. Home refurbishments, a €1,742-crockery set and €1,815 of children’s furniture were also charged to the company.
Cristina was named as an official suspect on 7 January for suspected tax evasion and money laundering. In the 200-page court filing — such documents are usually a few pages long — the judge highlights the difficulty of bringing the royal to court, saying it was necessary to write nothing short of a treatise of procedural law to do so.
Prime Minister Mariano Rajoy said on 20 January he was convinced the princess was innocent and that she should resist calls to give up her royal privileges. In the same television interview, Rajoy, whose party’s finances are being investigated in a separate probe, said everyone should be equal before the law.
Institutional crisis
The case has escalated an institutional crisis in Spain as faith in politicians and public bodies plunges amid a series of corruption investigations involving executives, politicians and unions. In April last year, 1,661 corruption and financial crimes cases were being pursued, and political corruption cases are on the rise, according to a report by the European Commission released this week.
That report showed 63% of Spaniards feel personally affected by corruption in their daily lives, the highest rate in the European Union, where the average rate is 26%. As many as 95% of Spaniards and 97% of businesses said corruption is widespread. BLOOMBERG
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