Anticorruption police search offices of royal family member

A police commission headed by the Balearic Islands' anticorruption prosecutor, Pedro Horrach, on Monday carried out a search at the headquarters of the Noos Institute, which was created by Iñaki Urdangarín, the Duke of Palma and husband to Princess Cristina, the youngest daughter of King Juan Carlos and Queen Sofía.

The investigation was initiated by José Castro, the judge who presided the Palma Arena case, for which former Balearic premier Jaume Matas of the Popular Party is in custody awaiting trial over alleged misappropriation of public funds and tax fraud. Matas' former director general of sports, José Luis Ballester, who was also arrested in connection with Palma Arena, is a close friend of former Olympic handball star Urdangarín and was one of the key points of contact between Noos and the Balearic government over the management of two tourism and sports forums in Palma in 2005 and 2006, ordered by Matas' administration. The investigation centers on the alleged misappropriation of 2.3 million euros of public funds and false documentation.

Part of the Palma Arena case open to public scrutiny involves four invoices presented to the Balearic government by Noos for 300,000 euros apiece. They were issued to the regional government's Fundación para el Suport i promoció de l'Esport Balear, under the title of "fees corresponding to the agreement signed."

Police have been studying more than 1,000 documents and tax officials are to release a report on the traffic of funds surrounding events organized by Noos. Weeks ago, Noos' main providers were subpoenaed to explain the nature of the work that was invoiced. Noos attributes the Palma invoices to translation, design and committee meetings in Valencia, where the organization also put on forums with the regional government.