Prosecutors launch Nueva Rumasa probe

Anti-corruption prosecutors have opened an investigation into the Spanish conglomerate Nueva Rumasa for setting up some of its companies in overseas tax havens as well for money laundering and tax evasion.

One week after Nueva Rumasa CEO José María Ruiz-Mateos announced that he was seeking protection from his creditors, EL PAÍS has learned that judicial authorities have launched a massive inquiry, which also includes investigation into whether the company has defrauded the Social Security system.

"It is true that we have affiliates in tax havens," said Ruiz-Mateos. "You mustn't forget that the government expropriated this group 28 years ago. We have taken measures to prevent this from happening again, but you can be assured that we have paid our taxes in Spain. We don't want to offer any more information than what they are asking for here."

But prosecutors will have a tough job untangling Nueva Rumasa's complex finances. The conglomerate is the parent of some 160 smaller companies, which have lent millions of euros to each other.

Compounding the inquiry for authorities is the fact that many of the companies that operate from Spain, such as Clesa, Dhul and Garvey, are registered in tax havens or in the Netherlands.

Investigators are reportedly also looking into whether Ruiz-Mateos defrauded investors, who were given promissory notes starting from 50,000 euros in exchange for their investments. They were told that their money was going to the purchase of other companies, but instead was used to pay off Nueva Rumasa's colossal debt.

One affiliate, Carcesa, offered promissory notes for more than triple its worth. According to filings at the Company Registry, nine affiliates, including the soccer team Rayo Vallecano, are 524 million euros in debt - three times more than their actual worth.