Businessman seeks to implicate Sánchez in corruption trial as PSOE vow legal action over ‘slander’

The proceedings centre on José Luis Ábalos, a former transport minister and key political ally who played a pivotal role in Sánchez’s rise to power in 2018. His trial is one of several investigations involving individuals close to the prime minister that have placed strain on Spain’s already fragile minority coalition government. ALSO READ: Spain’s former transport minister detained without bail in corruption investigation.

Ábalos is alleged to have received kickbacks linked to the awarding of contracts for face masks during the height of the Covid-19 pandemic. Prosecutors claim he used his ministerial position to favour businessman Víctor de Aldama (main image), with former adviser Koldo García acting as an intermediary.

Both Ábalos and García deny any wrongdoing and were due to testify before the Supreme Court in Madrid later on Wednesday.

Aldama, who was released from custody prior to the trial after cooperating with investigators, told the court that part of the proceeds from the alleged scheme went towards financing the PSOE party.

‘If there is a hierarchy in this case,’ Sánchez ‘was at level one’, followed by Ábalos and García, said Aldama, reiterating earlier claims implicating the prime minister.

‘Thank you very much for everything, I know exactly what you are doing and I just wanted to thank you,’ Aldama quoted Sánchez as telling him during an encounter.

He also described being struck by the apparent closeness between the prime minister and García, telling the court that Ábalos’s former adviser had remarked that Sánchez ‘owes me a lot, and he knows why’.

Sánchez has consistently denied any illegal financing of his party.

Senior PSOE figure Rebeca Torró rejected the accusations on social media, dismissing Aldama’s testimony as baseless. She said he ‘has turned lies into his defence strategy. It’s been two years now of accusing without evidence’.

The PSOE party has said that it will seek protection from the Supreme Court for Aldama’s ‘slander’. ‘We will not allow him to defame us,’ they stated in a press release.

Prosecutors are seeking a 24-year prison sentence for Ábalos on charges including bribery, embezzlement, influence peddling and membership of a criminal organisation.

According to the prosecution, Ábalos benefited from cash payments and perks that supported an extravagant lifestyle, including family holidays and a high-end apartment in Madrid for his former partner. ALSO READ: Former Spanish transport minister ‘given Marbella villa stay for helping airline bailout’.

Since the trial opened on 7 April, dozens of witnesses have testified, detailing alleged irregularities such as cash payments delivered in envelopes and the appointment of Ábalos’s former partner to fictitious roles in public companies.

While hearings are expected to conclude on Thursday, a final verdict could take months.

The case has proved politically damaging for Sánchez, who originally came to office pledging to clean up corruption following a major graft scandal involving the right-wing People’s Party (PP) in Spain. ALSO READ: Spying scandal trial opens turbulent week for Spain’s political elite.

After dismissing Ábalos as the PSOE’s organisation secretary, Sánchez appointed Santos Cerdán as his replacement – who is now also under investigation over alleged irregularities in public contract awards. ALSO READ: Supreme Court releases ex-ally of PM implicated in corruption probe, but is barred from leaving Spain.

The controversy has further strained relations between the PSOE and their left-wing coalition partner Sumar, as well as smaller regional and Catalan pro-independence parties whose backing is crucial for passing legislation. ALSO READ: Sánchez battles to control PSOE crisis, as claims of sexual harassment force a new resignation.

Separately, Sánchez’s wife, Begoña Gómez, may face trial over allegations she used her position for personal gain, following a two-year investigation that has dominated headlines. ALSO READ: Spain’s public prosecutor’s office urges dismissal of case against PM’s wife.

His brother, David Sánchez, is also due to stand trial in May on suspicion of being improperly appointed to a public sector role. ALSO READ: Trial of Spanish PM’s brother for alleged corruption postponed until late May.

Opposition parties, including the PP and the far-right Vox, argue that the growing number of scandals points to systemic corruption within the PSOE’s ranks reaching the prime minister himself. They have called for his resignation and the holding of early elections. ALSO READ: PM Sánchez dismisses calling early elections: ‘It’s an honour to govern even in these circumstances’.

Sánchez has rejected those demands and intends to remain in office until the next scheduled general election in 2027.