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Scheme Uncovered in Madrid Involving Fake Splitting of College Renovation Contracts

New Details Emerge in Scandal Over Multi-Million Contracts in Madrid’s Education System – Who Knew and Stayed Silent

Madrid authorities are at the center of an investigation over suspicious contracts for college renovations. An official raised concerns about violations but was dismissed. The probe revealed multi-million euro payments and potential corruption.

In October 2021, a conflict broke out within the Madrid administration: one of the heads of the education sector raised concerns about the legality of contracting work in vocational training institutions. He pointed out to his colleagues that several agreements were structured as small contracts to avoid mandatory open tenders. This allowed orders to be awarded directly, bypassing transparent procedures.

To support his claims, the official sent an email insisting on the need to comply with public procurement laws. He stressed that without a competitive tender, it would be impossible to carry out the work, and he strongly disagreed with the proposed scheme. The email was addressed to his immediate supervisors, but there was no response. The administration chose to ignore these warning signs.

Financial scandal and initial consequences

Almost two years later, the situation spiraled out of control. In September 2023, two vocational colleges received official demands for payment of debts totaling more than 1.4 million euros. These letters marked the start of a wide-ranging investigation, as the infrastructure department’s management claimed it was unaware of the relevant work and payments.

Soon after, regional authorities launched an audit that uncovered suspicious payments totaling nearly 4 million euros to just one company. As a result, formal complaints were filed against former heads of educational institutions and relevant officials mentioned in the debt documentation.

Investigation and new suspects in the case

The prosecution began investigating several Madrid government employees, suspecting them of artificially splitting contracts worth over 3 million euros. This scheme allowed contracts to be awarded without competitive bidding, violating established procedures. High-ranking politicians who held key positions in the region’s education sector have also come under scrutiny.

Among the suspects are representatives of the contracting company, as well as former leaders of educational institutions. Some have denied any privileges or wrongdoing, insisting they acted within their official powers. However, investigators are trying to determine whether they made decisions independently or were following orders from above.

Legal aspects and official response

The investigation revealed numerous violations: verbal agreements without official documentation, lack of transparency in tender conditions, and the artificial splitting of large contracts into smaller ones to bypass competitive procedures. The official who first raised the alarm stated that the process was as closed and opaque as possible, and his warnings were ignored.

The prosecutor’s office classified the actions of several employees as an administrative offense with signs of a criminal act. Judicial authorities had already indicated at the end of last year that there could be liability for abuse of office.

Case prospects and possible consequences

Audits submitted to the court confirmed the responsibility of the relevant ministry for awarding contracts in violation of limits and for the artificial division of orders. The investigation is ongoing, and the case could reach higher levels of the regional administration.

The scandal over contracts for college renovations in Madrid continues to grow. Regional authorities are being forced to respond to new facts, and the legal proceedings may lead to serious staffing and political consequences for the education system of the autonomous community.

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