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Spain shelves probe into €7-billion Saudi rail project contract

Spanish prosecutors have dropped a probe into suspicions Spanish firms paid kickbacks to secure a contract to build a high-speed rail link in Saudi Arabia, a ruling made public Thursday showed.

Spain shelves probe into €7-billion Saudi rail project contract
The investigation centred on $100 million Saudi Arabia’s late King Abdullah deposited into a Swiss bank account in 2008, to which Juan Carlos had access. (Photo by PIERRE-PHILIPPE MARCOU / AFP)

In 2011, Saudi Arabia awarded the contract worth €6.8 billion($7.2 billion) to a consortium of 12 Spanish companies and two Saudi firms to build the railway linking Islam’s holiest cities, Mecca and Medina.

Spanish prosecutors opened an investigation into the deal after a former mistress of Spain’s former king Juan Carlos was heard in a telephone conversation discussing commissions which were allegedly paid to secure the contract.

Anti-corruption prosecutors decided to shelve the probe “as it was not possible to determine the possible commission of the criminal offence”, according to the ruling dated May 4th.

The information which was gathered is “clearly insufficient”, and was “in part contradictory”, it added.

Juan Carlos was the target of a separate probe over the high-speed railway contract.

The investigation centred on $100 million Saudi Arabia’s late King Abdullah deposited into a Swiss bank account in 2008, to which Juan Carlos had access.

A unit of the highspeed train built by Spanish manufacturer Talgo is loaded onto a freighter in Barcelona’s port in 2014. (Photo by JOSEP LAGO / AFP)

Prosecutors dropped the probe in March, saying the could not establish “any link” between the receipt of the money and the awarding of the contract.

Swiss prosecutors had also opened a probe into the same issue in 2018 but dropped the case in December for lack of evidence.

Saudi Arabia opened the 444-kilometre (275-mile) railway to the public in October 2018. It has improved transport connections between Mecca and Medina during the annual haj pilgrimage.

Spanish construction and engineering firm OHL, train maker Talgo and state track operator Adif were among the firms which made part of the consortium that built the railway.

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POLITICS

Spain ex-minister slams ‘show trial’ over face mask scandal

An ex-minister and former confidante of Spain's Pedro Sánchez on Monday said he had been subjected to a "show trial" over a face mask procurement scandal at his former ministry.

Spain ex-minister slams 'show trial' over face mask scandal

Addressing a Senate committee looking into an alleged kickbacks scandal linked to mask procurement during the pandemic when he was transport minister, José Luis Ábalos said he knew nothing about the matter.

At the heart of the case is his former close aide Koldo García, who was arrested on February 21st over an alleged scheme that let a small previously unknown firm obtain contracts worth €53 million ($57.5 million) to supply masks to public authorities, which prosecutors say generated €9.5 million in kickbacks.

READ MORE: What is Spain’s ‘Caso Koldo’ corruption scandal all about?

Ábalos, who has not been charged with any offence, has nonetheless been ejected from the Socialist party after refusing to resign as a show of “political responsibility”, expressing his frustration at Monday’s hearing.

“This (whole thing) is a show trial” which does not respect “the principle of a presumption of innocence,” he told senators in the upper house of parliament, which is dominated by the right-wing opposition Popular Party (PP).

Asked what he knew about the matter, he said: “Nothing. And it’s not even clear to me there was such a scheme.”

Ábalos held the transport portfolio from 2018-2021 in Sánchez’s left-wing government and for years was a key member of his Socialist party.

In a court document published in the Spanish media, the investigating judge identified Ábalos as an “intermediary” but he has not been charged with any offence.

Addressing senators, Ábalos said at the height of the pandemic, his undersecretary was the one purchasing masks and not Koldo, saying he was “satisfied” with how things were managed because his was one of the first ministries “to obtain (protective healthcare) supplies”.

Acknowledging his “personal link” with Koldo, who was often photographed at his side, he said it was “a surprise” to learn of his personal enrichment when the matter came to light.

The scandal is particularly sensitive for Sánchez, who took power in 2018 after a huge corruption scandal brought down the former PP government, and has prided himself on the integrity and transparency of his administration.

Ábalos told senators he had not spoken to Sánchez since the scandal erupted, and criticised the Socialist party for expelling him without him being charged.

He was replaced as transport minister during a 2021 government reshuffle, and the PP has claimed his removal showed Sánchez was aware of the scandal and had sought to sideline him.

García appeared before the Senate last month, but invoked his “right not to testify” on grounds a legal inquiry into the matter has begun, while insisting his conscience was “absolutely clear”.

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