The Spanish former economy minister and IMF boss briefly arrested last Thursday is now under investigation on suspicion of concealing his wealth and for tax evasion.
Rodrigo Rato is believed to have been concealing a personal fortune of at least €27 million through the use of dozen of front companies in relatives’ names, according to information leaked to the Spanish media by court sources.
The judge overseeing the investigation, Enrique de la Hoz, has ordered the freezing of up to 78 bank accounts in Mr Rato’s name.
El Mundo newspaper writes that investigators have tax agency reports which point to unpaid taxes of more than €5 million resulting from the activities of 27 companies in Mr Rato’s name, or registered as being owned by members of his family.
Another 13 companies are said to be registered under the names of his lawyer, financial adviser and personal secretary.
It is believed Mr Rato created the scheme to avoid paying tax and having his money embargoed because he is implicated in several criminal cases related to the two years he was director of the lender Bankia until it had to be nationalised.
The current investigation as well as the existing criminal charges comes at a bad time for PM Rajoy and his ruling Popular Party. Rajoy has called Mr Rato “one of the party’s greatest assets”.
The PP is facing general and regional elections in November. The scandal could prove to be grist to the mill for both the burgeoning Podemos and the Ciudadanos parties hoping to increase their appeal to austerity-weary and often unemployed Spaniards.
Mr Rato was economy minister in Popular Party governments between 1996 and 2004 before a three-year stint as IMF chief.
