The Spanish former economy minister and IMF boss briefly arrested last Thursday is now under investigation on suspicion of concealing his wealth and for tax evasion.
Rodrigo Rato is believed to have been concealing a personal fortune of at least €27 million through the use of dozen of front companies in relatives’ names, according to information leaked to the Spanish media by court sources.
The judge overseeing the investigation, Enrique de la Hoz, has ordered the freezing of up to 78 bank accounts in Mr Rato’s name.
El Mundo newspaper writes that investigators have tax agency reports which point to unpaid taxes of more than €5 million resulting from the activities of 27 companies in Mr Rato’s name, or registered as being owned by members of his family.
Another 13 companies are said to be registered under the names of his lawyer, financial adviser and personal secretary.
It is believed Mr Rato created the scheme to avoid paying tax and having his money embargoed because he is implicated in several criminal cases related to the two years he was director of the lender Bankia until it had to be nationalised.
The current investigation as well as the existing criminal charges comes at a bad time for PM Rajoy and his ruling Popular Party. Rajoy has called Mr Rato “one of the party’s greatest assets”.
The PP is facing general and regional elections in November. The scandal could prove to be grist to the mill for both the burgeoning Podemos and the Ciudadanos parties hoping to increase their appeal to austerity-weary and often unemployed Spaniards.
Mr Rato was economy minister in Popular Party governments between 1996 and 2004 before a three-year stint as IMF chief.
Comments
Other commentators often point out that there is a substantial distinction between the thinking of north european (scandinavian / Anglo-Saxon etc) countries and Latino countries.
Although predating the Latins - but heavily influencing them - a fascinating insight,to a northerner, into a different way of thinking within the EU family of nations is reading up on the Greeks via
http://www.ekathimerini.com/
amongst many gems is one commentator recently writing ' What is the problem the EU has with talk? Why is it not equivalent to action?'
And we now learn that the EU northern negotiators will stop issuing deadlines when negotiating with Greece. Deadlines being well understood by the north but total lunacy to a southerner who now has a target to 'play games with'.
Screamingly funny and presumably some half-breed gave us northerners the heads-up ... except this thinking could still crash Portugal and in time the euro itself.
And then they have the nerve to tell us how to live our lives.
In taking of backward countries, does Dilys include the French with their Strauss Kahn? His misdemeanours were only sex and infidelity so far as I know, but I and I suspect a great many others rejoiced in his downfall. If he cannot be trusted in this way, could you trust him in any other way? How are the mighty fallen.
These linkages between an owner of a bank account or business and his children, best friends, pet animals, lawyer, financial adviser and personal secretary are as old as time.
Yet the slightest attempt by anyone at the tax office to set their computers up to make these cross referenced searches ends up being discussed as an outrage in Parliament. And investigators also still not being able to then check say Portuguese bank accounts due to the banks (often part owned by the Portuguese people) still insisting on 'client confidentiality'.
Because the elite VIP's have not yet (and never will?) draft the legislation allowing these investigations?
And the stronger EU countries then having to bail them out ?