Socialists renew calls for Rajoy to resign following slush fund allegations

Following new allegations that the Popular Party (PP) may have controlled secret slush funds in all of Spain’s regions, the main opposition Socialist Party on Friday demanded that Prime Minister Mariano Rajoy step down.

Speaking on behalf of his party, Óscar López, the Socialist secretary for organization, said that ongoing corruption allegations have put the PP in “an unsustainable position.”

López also called for a congressional investigation into the allegations, including looking into the sources of money found in bank accounts held by jailed former PP treasurer Luis Bárcenas.

On Thursday, Bárcenas told the High Court that he assumed control of the party’s secret accounts from former Public Works Minister Francisco Álvarez-Cascos, who handed him the key to a secret safe containing money that did not appear in the party’s official accounting. Álvarez-Cascos was PP secretary general at the time.

“What has to happen next before something is done inside the PP?” asked the Socialist official

He also explained to the investigating judge that the PP set up slush funds in every region.

Bárcenas, who has admitted to penning ledgers that contained information about bonus payments made to top PP officials – including Prime Minister Rajoy – and irregular payments coming in from high-profile businessmen, is facing tax-evasion and money-laundering charges.

Prosecutors say he and his wife may have avoided paying some €11 million in taxes over the years. Investigators also claim Bárcenas held as much as €48 million in Swiss bank accounts, with some of the money funneled from the slush fund.

“What has to happen next before something is done inside the PP?” López asked. “Of course, the most positive step would be for Mr Rajoy to resign. This is something that we are going to continue pressing for, as we have in the past.”