Spain’s National Court has imposed complete secrecy on the investigation into cash payments within the PSOE party over the past seven years. Judge Ismael Moreno has launched a separate proceeding after party representatives submitted a flash drive containing financial documents covering 2017 to 2024. All information will be inaccessible to the public for at least a month — the duration of the confidentiality period.
Such strict measures were prompted by the submission to the court of a vast database detailing hundreds of transactions related to payments to party staff, members, and even volunteers. The documents include recipients’ names and payment amounts, which, according to PSOE’s legal team, require special protection of personal data. The party insisted on a closed hearing to prevent leaks and ensure confidentiality.
The Role of the Prosecutor’s Office
The Anti-Corruption Prosecutor’s Office has been formally notified of the new developments. Judge Moreno noted that the nature and scale of the uncovered facts require special attention and assessment from supervisory authorities. The agency must determine whether there are grounds for further action regarding possible financial violations.
The entire story began after the Supreme Court received documents on the case of former Transport Minister José Luis Ábalos and his advisor Koldo García. During the review, it was discovered that some expenses related to the PSOE organization secretariat did not match the official reports. This raised suspicions for Judge Leopoldo Puente, who then forwarded the materials to the National Court for further investigation.
Internal mechanisms
Within the party, there was a system under which expenses for events and trips were paid from a special cash fund located on Ferraz Street. According to PSOE lawyer Alberto Cachinero, this fund was the only source of cash used to cover such expenses. Money was issued to officials, staff, and even party supporters involved in organizing events.
However, it was this very mechanism that raised concerns during the investigation. The prosecution was particularly interested in Koldo García’s role, as staff reported that he often collected envelopes of cash to deliver to Ábalos and other team members. Officially, García did not hold any position in the organization’s secretariat, which raised further suspicions among prosecutors.
Uncertainties and questions
During questioning, former party manager Mariano Moreno and staff member Celia Rodríguez confirmed that it was García who handled the distribution of cash. However, prosecutors insist that these statements need to be verified, as it remains unclear who exactly oversaw the process and how the supporting documents submitted for reporting were checked.
Fiscal authorities note that there is still no clear explanation of how invoices were verified and who made the final decisions on disbursements. The case files span hundreds of pages with year-by-year details, complicating the analysis and requiring significant time for thorough review.
Suspicions of money laundering
Judge Moreno does not rule out that the cash payment system could have been used to legitimize funds obtained through illegal activities. Specifically, it concerns a possible attempt to conceal illicit income linked to Ábalos and his advisor. The prosecution emphasizes that, at this stage, the investigation is not against the party itself but rather focuses on the potential embezzlement of its funds.
For the next month, all materials will remain classified. Investigators will continue reviewing the documents to determine whether violations occurred and who may have been involved. Key questions remain unanswered, and the public awaits further details in this high-profile case.
