Antifraud Flagged Risks in €255 Million Contracts in Valencia. A provisional Antifraud report has uncovered violations in major municipal contracts in Valencia. The spotlight is on councillor José María Olano's actions and a potential conflict of interest. Final conclusions will follow after objections are reviewed.
A scandal is unfolding in Valencia over municipal contracts totaling 255 million euros, including 21 million from the Next Generation European funds. An interim report from the Anti-Fraud Agency has uncovered serious violations in the awarding process. At the center of attention is José Marí Olano (PP), advisor for major projects and member of the contracts commission, whose actions, according to the agency, may jeopardize the legality of the deals and the city's funding.
According to the report, the issues involve possible conflicts of interest, failures in recusal procedures, and violations within the contracts commission's operations. The Anti-Fraud Agency notes that in several cases, Olano failed to identify specific companies or individuals he is connected with, rendering his recusals legally questionable. The agency emphasizes that to recognize a conflict of interest, it is crucial to clearly indicate who is involved and why this constitutes grounds for recusal.
Response of the authorities and opposition
The municipal opposition has been demanding for several months that Olano disclose the list of companies he works with, since he was granted authority over contracts in 2023. After receiving no response, the Socialists appealed to the Valencian Community Ombudsman (Síndic de Greuges), who in his resolution also called on the advisor to reveal this information. Olano works for the municipality on a part-time basis (75%), which allows him to maintain private practice.
According to Compromís representatives, if Antifraud's conclusions are confirmed, Valencia may face the risk of returning European funds and the failure of key urban projects. These include the renovation of Pérez Galdós and Giorgeta streets, maintenance of the sewage system, development of urban gardens in Orriols, and the modernization of municipal facilities. The opposition calls the situation the result of systemic management errors and demands Olano’s resignation.
City hall’s stance and the dispute over the report
Valencia city hall emphasizes that the Antifraud report is preliminary and that final conclusions will only be drawn after all objections are considered. Juan Carlos Caballero, a representative of the ruling party, stated that he is not familiar with the details of the objections filed and believes it is premature to draw conclusions before the final document is published. He also called Compromís’s publication of the report a “biased leak” and rejected claims of risks to contracts as false.
Context and significance for the city
The contract situation in Valencia unfolds amid other heated disputes in the region. Recently, the authorities of Valencia and Murcia advocated for the preservation of the Tajo-Segura aqueduct, while Castilla-La Mancha insists on moving toward water desalination. More on the conflict over water resource distribution can be found in the article on the escalation of the dispute between the regions.
The final Antifraud report is expected to be published in the coming weeks. Its findings will determine not only the fate of major city projects, but also the possibility of returning European funds, which could significantly impact Valencia's budget and the implementation of infrastructure initiatives.
