Former Sanchez right-hand man in fresh corruption probe over missing €95k

SPAIN’s left-wing PSOE, the ruling party in government, faces fresh scrutiny after investigators found that Prime Minister Pedro Sanchez’s former right-hand man racked up €95,000 in unaccounted personal expenses while in office.

Jose Luis Abalos was arrested last November on charges of corruption. He is accused of receiving kickbacks for private companies awarded contracts by the state during the pandemic.

After the indictment the PSOE presented its ledgers before the Supreme Court judge overseeing this case. The books accounted for nearly €20,000 in expenses by Abalos – some of which were reportedly paid to him in cash – but a further €95,000 he spent between 2017 and 2021 could not be traced to any source, Guardia Civil investigators have now found.

READ MORE Spain’s PM Pedro Sanchez slams judges for being ‘political’ over corruption probes ‘driven by far-right groups’

The case against Abalos has become increasingly complex, and the PSOE’s involvement is being questioned.

Guardia Civil investigators stated that the findings were “especially relevant,” as they “pointed towards an undeclared form of income.” They added that this “was not an isolated instance.”

Between 2014 and 2017, Abalos frequently withdrew cash using his credit card – but abruptly dropped the habit in 2018.

This is what I think [his] In a recent report, the Guardia Civil stated that liquidity needs could have been met by sources other than bank account.

Investigators believe Abalos transferred some of the funds among his family members including his ex wife, two children and two former lovers. He also funneled a part of the money to a foundation named Fiadelso and allegedly used it to pay for his mortgage payments.

You can find a lot of information on XAbalos blasted the investigators who shared the report with media before he even knew it had been filed. The Guardia Civil, he added, was operating on “a presumption” of guilt.

He said: “In conclusion, they ended up investigating my personal life.” [and] My lifestyle is all that I have left. “This is not acceptable.”

El informe de la UCO 157/2025 hecho público una vez más a través de la prensa antes de ser notificado a las partes (como obliga la ley), no solo entorpecen mi derecho de defensa, sino que evidencia la intencionalidad tendenciosa y el sesgo con los que habitualmente elaboran sus…

The corruption scandal, dubbed ‘the Koldo case’ after Abalos’ personal advisor Koldo Garcia, broke out in early 2024 when the Guardia Civil officially implicated several PSOE party officials in the kickbacks scheme.

According to investigators, Abalos, Garcia, and PSOE’s former secretary Santos Cerdan allegedly received kickbacks on €500 million worth of public contracts – some awarded without a tender – for the purchase of sanitary equipment during the pandemic.

Garcia, who was a nightclub bouncer in the past, is thought to have served as a mediator between companies and party officials.

READ MORE The Spanish Supreme Court has detained former PSOE party secretary Cerdan over allegations of corruption

Three men were removed from their positions within the PSOE and face a number of charges, including being a member of a criminal organization, influence peddling, bribery and embezzlement.

The audio recordings obtained allegedly show Abalos and Garcia discussing plans to hire prostitutes, and making lewd comments about the appearance of women.

The opposition in government reacted to the controversy by repeatedly calling for Sanchez’s resignation – but the prime minister said he was not responsible for the actions of those involved in the scheme.

Opinion polls suggest that the PSOE voting base is dissatisfied by Sanchez’s handling.

Salvador Illa has been suggested as a potential successor to the leadership of the party at the next elections. He is the head of Catalunya’s regional government, and a close friend of the Prime Minister.

READ MORE EXPLAINER: What are the many corruption scandals engulfing Spain’s Pedro Sanchez – and can he survive?

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