An investigation for alleged fraud and money laundering against Rodrigo Rato, a former Spanish minister and former International Monetary Fund director is hurting the ruling Popular Party, said Saturday the Prime Minister at a time when the political organization prepared to stand for general elections later this year.
Speaking at a hastily convened press conference in Murcia, Mariano Rajoy acknowledged that the investigation into Rato “particularly affects the Popular Party” because the former minister was one of their most important assets.
Rato, who was briefly arrested Thursday while police searched his home and offices, was finance minister and deputy prime minister under the head of government conservative José María Aznar between 1996 and 2004. Rato was seen as a possible successor to Aznar.
Meanwhile, in Washington, the Spanish Economy Minister Luis de Guindos, admitted Saturday that the situation is difficult for him because he collaborated with Rato for eight years in that office, but said that “the law must be applied regardless of any personal consideration.”
During a press conference during the biannual meeting of the International Monetary Fund and the World Bank, the minister said there was no mention of Rato during talks with the managing director Christine Lagarde and other officials.
The official denied that the case Rato affect Spain’s image abroad.
“What is valued ultimately is a country where institutions work and the law applies. Of course this government is going to bring to the letter, “he said.
Rato led the IMF from 2004 to 2007 before returning to Spain, where he was appointed chief executive of Spanish bank Bankia.
In May 2012, Bankia replaced Rato in office and acknowledged that it would need 19,000 million (then about 23,800 billion) in state aid to shore up their finances because of their bad loans, a massive rescue and unexpected that shook the government of Rajoy as Spain reached the height of its financial crisis.
The National Court investigates Rato on suspicion of mismanagement in Bankia, and the alleged use of credit cards for irregular expenditure not declared.
On Friday night, as protesters gathered outside the headquarters of the PP in Madrid, Spain prosecutor ordered the freezing of bank accounts Rato, both individuals and their companies.
A series of scandals among them the former treasurer of the party being investigated for allegedly engaging in illegal financing of the PP have outraged the Spanish and have beaten the game Rajoy as he prepares for the municipal and regional elections next month and the general elections later this year.
Rato was suspended from the PP.
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