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Ten Madrid Municipalities Concealed Contracts Worth €21.5 Million

Reporting scandal: Why did regional cities conceal major transaction data?

Madrid’s oversight body has discovered hidden contracts worth millions of euros. Several towns failed to submit procurement documentation. Authorities are demanding explanations and tighter oversight.

Authorities in the Madrid region have encountered an unexpected issue: ten municipalities, governed by representatives of the two main political parties, failed to provide information regarding 27 contracts signed in 2023. The total value of these deals exceeded €21.5 million. The region’s oversight body, led by Joaquín Leguina, insists that sharing procurement data is a fundamental obligation for local administrations.

The review covered more than two hundred major contracts, but some documents were never submitted. As a result, auditors were able to examine only 215 out of 242 planned cases. The rest went uninspected due to a lack of reporting from city authorities.

The list includes both large cities and small towns: Móstoles, Parla, Collado-Mediano, Cubas de la Sagra, El Molar, Puentes Viejas, Arroyomolinos, Sevilla la Nueva, Velilla de San Antonio, and Villanueva del Pardillo. Additionally, Leganés’s municipal housing company and the Alcalá de Henares University Foundation also failed to submit reports. All of them ignored requests from auditors, prompting a strong response from the oversight body.

Major Violations and Official Response

Mostoles drew particular attention, as it failed to provide information on eleven contracts, including lifeguard services at sports complexes and the operation of a nursing home. The total sum for these deals exceeded 12 million euros. Velilla de San Antonio, governed by the Socialists, also withheld documents for seven procedures. Municipal representatives claim they have met all requirements, but the oversight body insists otherwise.

The report notes that such behavior hinders proper oversight of budget spending. Auditors emphasize that without timely submission of documents, it is impossible to assess the efficiency and transparency of local administrations. In addition, numerous formal errors were identified in other cases, further complicating the review.

Possible sanctions and next steps

The oversight body has appealed to the regional parliament, proposing an official demand for explanations from the municipalities and measures to prevent such situations from recurring. Madrid authorities are already considering fines for those who ignore their disclosure obligations. The legal services of parliament and the oversight body are analyzing the situation and preparing proposals to tighten control.

Overall, the scandal over hidden contracts has become a troubling wake-up call for the region’s entire management system. Issues of transparency and accountability are once again in the spotlight, forcing local authorities to look for ways to restore public trust and prevent similar incidents in the future.

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