MADRID — A defendant in a high-profile corruption trial that has shaken Spain's minority government told a court on Wednesday that Prime Minister Pedro Sánchez was the leader of a criminal organisation that manipulated public contracts and illegally financed his Socialist party.
Víctor de Aldama, a businessman who has cooperated with prosecutors after his release from custody, testified that Sánchez was "at level one" in a hierarchy that included former transport minister José Luis Ábalos and ex-adviser Koldo García. Aldama claimed that some profits from the scheme, which involved the irregular awarding of contracts for face masks during the COVID-19 pandemic, were used to fund the Socialists.
"If there is a hierarchy in this case, Sánchez was at level one," Aldama told the court, according to Spanish media reports. He also quoted Sánchez as telling him during an encounter: "Thank you very much for everything, I know exactly what you are doing and I just wanted to thank you."
Aldama expressed surprise at the "closeness" between Sánchez and García, adding that García once told him Sánchez "owes me a lot and he knows why." The businessman finished testifying after more than six hours on the stand. The trial is scheduled to resume on Thursday.
Political Fallout and Coalition Strains
The allegations have deepened the turmoil surrounding Sánchez's fragile coalition government, which relies on support from the far-left Sumar party and a patchwork of regional and separatist parties to pass legislation. The Socialists' internal crisis has strained relations with these allies, as the party faces multiple investigations into alleged corruption involving Sánchez's family and former associates.
Senior Socialist official Rebeca Torro dismissed Aldama's testimony as "slander" on X, writing that he "has turned lies into his defence strategy. It's been two years now of accusing without evidence." Sánchez has consistently denied any illegal financing of his party.
The trial of Ábalos, once a key figure in Sánchez's rise to power in 2018, is one of several probes that have dogged the prime minister. Prosecutors are seeking 24 years in prison for Ábalos on charges including bribery, embezzlement, influence peddling, and membership of a criminal organisation. He is accused of receiving cash and favours that funded a lavish lifestyle, including family holidays and a luxury apartment in Madrid for his former partner.
Since the trial began on 7 April, dozens of witnesses have testified about alleged wrongdoing, including the movement of cash in envelopes and the appointment of Ábalos's ex-lover to fake jobs in public companies. Proceedings are expected to conclude on Thursday, but a verdict may take months.
The corruption cases have damaged Sánchez's reputation as a reformer who came to power promising to clean up Spanish politics after the conservative Popular Party (PP) was convicted in its own graft affair. After removing Ábalos from his powerful post as Socialist organisation secretary, Sánchez appointed Santos Cerdán, who is now also under investigation for alleged corruption in public contracts.
Beyond the Ábalos trial, Sánchez's wife, Begoña Gómez, could face trial for allegedly exploiting her position for private gain, an investigation that has dominated headlines for two years. His brother, David Sánchez, is set to stand trial in May on suspicion of being irregularly appointed to a local government post.
The PP and the far-right Vox party have seized on the scandals, calling for Sánchez's resignation and early elections. They argue that the accumulation of cases reveals systemic corruption within the Socialist party that reaches the prime minister himself. Sánchez has rejected these demands and intends to serve out his term until the next scheduled general election in 2027.
Spain's political instability comes amid broader European challenges, including rising energy costs that have driven inflation higher in Germany and Spain ahead of the European Central Bank's next rate decision. The country is also racing to expand renewable energy capacity alongside France and Portugal as part of the continent's energy transition.
