Socialist leaders come out to defend ex-public works minister in inquiry

Socialist leaders on Friday came out in full force to defend former Public Works Minister Magdalena Álvarez, who was officially placed under investigation this week in a judicial inquiry into an alleged public fraud scheme that took place in Andalusia.

Secretary General Alfredo Pérez Rubalcaba said there is not one “legal or valid argument” to name Álvarez as a target of the investigation into the reported embezzlement of a government fund that was set up to help companies pay severance to laid-off workers.

Seville Judge Mercedes Alaya on Tuesday said that Álvarez “laid down the rules” on how money was transferred from the regional budget to the fund while she served as economy and finance chief for Anadalusia from 1994 to 2004. Álvarez is currently the vice-president for Trans-European Networks at the European Investment Bank (EIB).

“I trust that justice will eventually say that there is nothing there, because there is nothing there to investigate. Absolutely nothing,” said Rubalcaba.

According to prosecutors, hundreds of people illegally profited from the fund, including families and friends of politicians and other officials. There are allegations that some of those who benefitted from the trust never even worked at any of the companies that received help. The fund provided up to 721 million euros in severance payouts in one decade, but the judge believes that some 136 million euros may have been embezzled between 2001 and 2010.

I trust that justice will eventually say that there is nothing there"

Besides Álvarez, Ayala also placed 20 former and current officials under investigation.

“Magdalena is one of the most responsible and honorable politicians I have ever known,” said former Socialist Prime Minister Felipe González on Friday, who added that he was “truly shocked” by the allegations.

“In some cases, people are placed under investigation without being charged with any crime,” González said.

The ongoing judicial investigation has reached a critical period for the Socialists in Andalusia, where regional premier José Antonio Griñán last week announced he was leaving politics. The Socialists have governed the region for nearly 30 years.

When asked whether Griñán or other top Socialist officials should be held politically responsible for the alleged irregularities, Rubalcaba said: “No, because no violations have been committed.”

Alaya believes that the system that the regional labor department introduced to make the compensation payouts resulted in a “continued squandering of public funds,” and she announced that her goal is hold responsible the politicians that allowed the “misuse” of public money.

Griñán took over from Álvarez as economy and finance commissioner and served in that post from 2004 to 2009 — the year he replaced Manuel Chaves as regional premier.

Following the elections in 2011, Griñán formed a government with the United Left (IU) coalition after the Socialists failed to obtain enough seats in the regional parliament.

The Popular Party (PP) won more seats than the Socialists — 50 to 47 — but fell short of the 55 needed to form a government.