American Marconi Wireless News - Spanish PM says knew 'nothing' about corruption case

The case adds to mounting legal and political pressure on Sanchez, one of Europe's longest serving socialist leaders whose inner circle faces several ongoing investigations.

Santos Cerdan, the party's organisation secretary and its third-highest ranked figure, is suspected of being an accomplice in the alleged improper awarding of public contracts, according to a newly published judicial report.

Cerdan, a member of parliament, stepped down from all his positions "to defend" the government and the party, adding in a statement that he "never committed any illegal act".

Shortly afterwards, Sanchez told a news conference he knew "absolutely nothing" about the corruption accusations against his longtime associate, having learned about them in the press earlier on Thursday.

"We never should have trusted him," the premier said, adding that he had demanded that Cerdan step down.

A judge said that a police report "reveals the existence of consistent evidence" suggesting that Cerdan acted in collusion with former transport minister Jose Luis Abalos and the latter's former adviser, Koldo Garcia Izaguirre, in exchange for financial gain.

Cerdan's position became untenable after excerpts of recordings were published on Thursday in the press, reportedly capturing conversations with Abalos and Garcia.

In the recordings, the three men appear to discuss secret commission payments by companies in exchange for public contracts.

Cerdan has been invited to testify voluntarily before the Supreme Court on June 25.

Lawmakers from the main opposition Popular Party (PP) greeted Cerdan in parliament with chants of "resignation".

"If anyone had doubts that there was a mafia-like network behind the ruling party and the government, I suppose those doubts have now been dispelled," PP leader Alberto Nunez Feijoo told reporters, while calling for Sanchez to resign.

"This is unacceptable in a European Union country. A European prime minister wouldn't last 10 minutes after the revelations we've seen in recent weeks," he added.

But Sanchez ruled out calling early elections, saying that the case “does not affect the government of Spain, only the party".

- 'Smear campaign' -

Tens of thousands of people took part in a protest against Sanchez's government on Sunday in Madrid which was called by the PP.

Abalos, who served as transport minister from 2018 to 2021 and was once a key figure in Sanchez's administration, is accused of receiving illegal commissions through business contracts.

He faces charges of corruption, influence peddling and embezzlement.

Abalos was dismissed from Sanchez's cabinet in 2021 and expelled from the Socialist Party earlier this year, but remains a member of parliament as an independent.

His parliamentary immunity was lifted in January. During a court hearing in December, he denied receiving any kickbacks and maintained that there were no irregularities.

Sanchez's wife, Begona Gomez, and his brother, David Sanchez, are also the targets of separate investigations for graft.

And Spain's top prosecutor, Alvaro Garcia Ortiz, who was appointed by Sanchez's government, is facing a possible trial over suspicions he leaked secret case files concerning the partner of Isabel Diaz Ayuso, the powerful conservative leader of the Madrid region.

The Spanish prime minister has dismissed the probes against members of his inner circle as part of a "smear campaign" carried out by the right wing to undermine his government.

Sanchez came to power in June 2018 after ousting his predecessor, Mariano Rajoy, in a no-confidence vote over corruption scandals involving the PP.

Most recent opinion polls show the PP holding a slim lead over the Socialists.

D.Sawyer--AMWN