Spain’s former PM faces tax fraud inquiry as police find €1.3m of jewellery | Spain

Former Spanish prime minister José Luis Rodríguez Zapatero is being investigated for possible tax fraud and evasion after police discovered jewelery worth more than €1.3 million (£1.1 million) while searching his office safe as part of a separate investigation.

Zapatero, who led two socialist governments between 2004 and 2011, is currently under investigation for alleged influence peddling and other crimes related to the state bailout of Spanish airline Plus Ultra during the Covid pandemic. It is alleged that he oversaw the “hierarchical structure of influence peddling”, the purpose of which was “to obtain economic benefits through intermediation and to exercise influence before public institutions in favor of third parties, especially Plus Ultra”.

On Friday, the investigating judge of Spain’s highest criminal court, the Audiencia Nacional, said a new investigation had been launched after the value of the jewellery, which included necklaces, bracelets, rings and watches, was determined to be 1 million 323 thousand 915 euros.

In his decision announcing his decision, Judge José Luis Calama said that the apparent absence of the necessary tax documents regarding the jewelry found on May 19 led him to launch a new investigation.

“The possession of high-value luxury goods, combined with the lack of tax traceability regarding their purchase, constitutes an objective and rational indicator of the possible existence of serious tax fraud, since the purchase of jewelery of the stated value necessarily gives rise to tax liabilities, be it VAT, property transfer tax, inheritance and transfer tax or personal income tax, depending on the nature of the legal transaction,” he said.

A spokesman for Zapatero said some of the jewels were inherited by the former prime minister and his wife, while other pieces were collected on trips. The spokesman, who initially claimed the jewels were worth €30,000 to €50,000, apologized on Friday for inadvertently misleading people and said he and the former prime minister would issue a statement to Calama.

Zapatero, who will appear in court next week, has denied any wrongdoing.

After the investigation into his role in the Plus Ultra bailout was opened, Zapatero released a video in which he insisted on his innocence and stated his willingness to cooperate with the investigation. “I would like to reaffirm that all my public and private activities have always been conducted with absolute respect for the law,” he said, adding that he never took “any action” related to the airline’s rescue.

Zapatero’s socialist successor, Pedro Sánchez, faces a series of corruption cases involving his wife, brother, party and administration.