The PSOE paid the representation expenses at its discretion, as LA RAZÓN has learned from sources familiar with the system with which the socialist leadership paid for the settlements corresponding to these items for years. The Secretary General and President of the Government, Pedro Sánchez, admitted yesterday that he had “on some occasions” collected cash. “It was not something common, but I’m sure that on some occasions I have had that type of expense settlement,” he said in an interview on Cadena Ser, the second he has given to a national media outlet in just over two months.
According to the sources consulted, these expenses were borne by all those who had an “entity” on Ferraz Street. That is to say, it was the party management, through the Organization Secretariat, that decided whose expenses were covered and what concepts were defrayable. And the party’s own ethical code makes it clear that “austerity implies making effective and efficient use of resources, particularly by people with responsibility for economic management.”
And it explains: “Superfluous or unnecessary expenses will be avoided and those expenses of representation or attendance at meetings or events will be duly justified, including food and accommodation, under the principles of adequacy, proportionality and necessity.” But the investigation by the Civil Guard into former minister José Luis Ábalos has unleashed a storm because it has detected that, for years, representation expenses were apparently not in accordance with the ethical code of the socialists.
Always according to the story of these sources, any person who had an “entity” within the party was anyone who was in the leadership or complied with a directive made by someone at the top. And, of course, the general secretary was part of that discretionary spending coverage. For this reason, Sánchez had to admit that on occasion he would collect money under this system.
The President of the Government is aware that at any time his name may appear in a report as a tutor of this type of income. Sánchez followed the line of defense of the party and the Government itself: the socialists have been explaining for several days that all their income is perfectly justified and that this money does not represent any means of irregular financing. However, from those investigated in the “Koldo case” plot, they urge the PSOE to explain to all Spaniards how the fund used to cover representation expenses was funded; something that the Civil Guard report does not analyze.
The socialists reiterate that this money comes from the accounts themselves from which the cash was withdrawn and then covered by those who incurred these representation expenses. The minister spokesperson, Pilar Alegría, insisted on this yesterday, while saying she did not remember whether or not she collected cash from the party and that, if she had ever done so, it was all legal. What is striking is that it was Sánchez who admitted it, because some of his ministers, such as Alegría herself or the head of Digital Transformation and Public Service, Óscar López, go back and forth on the matter without specifying whether “yes” or “no.”
The PSOE, officially, has not detailed the origin of that money or the reason why it made those cash payments. The sources consulted point to the criteria of former manager Mariano Moreno, current president of the public company Enusa, where, by the way, the former socialist militant Leire Díez worked as a press officer. During most of José Luis Ábalos’ mandate as head of the Organization Secretariat – from 2017 to July 2021 – and with Mariano Moreno at the head of management, payment in cash was the usual practice within the PSOE.
It was not until the first half of 2021 when the PSOE began to introduce changes, progressively replacing cash with bank transfers for certain expenses. That year also marked a turning point in the internal structure of the party, with a profound renewal of positions in its “apparatus.” After the dismissal of Ábalos, Pedro Sánchez promoted Santos Cerdán as the new Secretary of Organization and, a few months later, in October, he relieved Moreno of management to appoint Ana María Fuentes, current head of the area, in his place. With his arrival, the control mechanisms for representation expenses were modified.
By then, comments were already spreading within the party about the high level of spending that Ábalos assumed in the performance of his duties as head of Ferraz’s organic life. Sánchez did not clarify whether this system was going to be stopped and defended that the fundamental thing is that it be done in accordance with the law: “The important thing is that it is legal, it is not so much whether it is cash.” The president once again stressed that there is “no indication” that points to irregular financing of the PSOE and limited everything to a case of alleged corruption that Justice will have to resolve. He said that, therefore, it will be Ábalos and Santos Cerdán who will have to give explanations in court.