Jesús Daniel Romero and William Acosta for Poder & Dinero and FinGurú
By,
William Acosta, NYPD, (Ret)
Jesús Daniel Romero, USN, (Ret)
Introduction
In March 2021, the Spanish airline Plus Ultra received a bailout of 53 million euros approved by the Spanish Government's Council of Ministers, as part of an effort to mitigate the effects of the health crisis caused by the COVID-19 pandemic. However, this bailout has been the subject of controversy and investigations by the Spanish Anti-Corruption Prosecutor's Office, which has raised serious suspicions about the use of these funds. It has been speculated that they may have been used to launder money associated with illicit activities, particularly related to the sale of gold in Venezuela. This report focuses on detailing the findings of the investigation and the context in which these operations take place.
Background of the Bailout
The bailout of Plus Ultra was conceived as part of a package of measures implemented by the Spanish Government to support businesses facing difficulties due to the crisis caused by the pandemic. Despite this intention, doubts arose about the necessity and legality of the bailout, as the airline allegedly did not meet the established criteria to be a beneficiary of such funds. This lack of compliance has led to questions about the transparency and proper management of public money.
Suspicions of Money Laundering
Investigations by the Anti-Corruption Prosecutor revealed that Plus Ultra made transfers to accounts abroad linked to a money laundering network with connections in Venezuela, France, and Switzerland. This criminal network has been identified as being involved in laundering large sums of money that, according to the investigation, come from misappropriated Venezuelan public funds. Initial inquiries suggest that these funds could be related to irregularities in the sale of gold by the Bank of Venezuela and in the state program for food distribution by the Local Supply and Production Committees (CLAP), pointing to a pattern of corruption and embezzlement of state resources.
Irregularities in the Bailout Process
The Spanish Government had received reports indicating that Plus Ultra did not meet the necessary criteria to access the bailout. Nevertheless, the airline was a beneficiary of the funds, leading the Prosecutor's Office to investigate possible fraud against the State. In the reviewed documentation, Plus Ultra appears as a signatory of loan contracts with companies associated with the money laundering network. After receiving public aid, it has been reported that the airline made repayments to these companies through foreign accounts, reinforcing suspicions of possible defraudation of public funds.
Composition of the Criminal Organization
Investigations have revealed that the suspicious network is composed of individuals from various nationalities, including citizens of Peru, Venezuela, and the Netherlands who have obtained Spanish nationality. The involvement of at least one lawyer from Madrid has been mentioned, suggesting an organized structure aimed at facilitating money laundering. This operation includes the acquisition of real estate using illicitly obtained funds, leading authorities to consider the magnitude of the financial operations involved.
Loan Contracts and Suspicious Transactions
The Prosecutor's Office has found loan contracts that were fully repaid, but whose origin is under investigation. One of the contracts involved the sale of gold valued at 30 million euros to a company from the United Arab Emirates, while another entity allegedly received transfers to a bank account in Panama. Additionally, it is suspected that the network has used the sale of luxury watches as an additional method for laundering money, further complicating the financial web surrounding this case.
Judicial Rejection and Appeal of the Case
In November 2023, the Central Court of Instruction number 2 rejected the complaint filed by the Anti-Corruption Prosecutor's Office, arguing that the National Court did not have jurisdiction over these facts, as the crime of money laundering was linked to illicit activities in Venezuela. However, the Public Prosecutor's Office has filed an appeal, insisting that the network has a considerable impact on Spain. The Prosecutor argues that the National Court should take on the case based on current regulations that allow intervention in situations of transnational crime.
Misuse of Public Funds
The prosecutor has emphasized the alleged misuse of Spanish public money, noting that Plus Ultra diverted part of the bailout funds towards foreign companies linked to the sale of gold, under the guise of loan repayments. Additionally, it has been mentioned that some of the "clients" involved are being investigated by Spanish justice, with at least one of them charged in two open cases in the National Court. This raises serious concerns about transparency and the management of public funds in the context of corporate bailouts.
Summary of the Situation regarding Plus Ultra and VOX
The political party VOX (voice in Latin) has requested the Superintendency of the Securities Market of Panama to investigate a loan of 7.5 million dollars granted to Plus Ultra by the firm Panacorp. According to VOX, this loan was essential for Plus Ultra to qualify for the bailout of 53 million euros from the Spanish Government. The complaint also mentions that Panacorp, a brokerage firm linked to individuals associated with the Venezuelan Government, is not regulated as a bank in Panama, raising doubts about the legitimacy of the loan.
Additionally, VOX is preparing a legal challenge against Judge Jaime Serret's ruling that allowed the unblocking of an additional 34 million euros for Plus Ultra. This unblocking is deemed crucial to prevent the insolvency of the airline, according to the judge, who warned about the negative impact on passengers who had already paid for their flights. The case is under analysis by various judicial instances in Spain, with VOX acting in a context of growing concern over the management and transparency in the use of public funds earmarked for corporate bailouts.
Individuals and Entities Involved in the Plus Ultra Case
The case involves various entities and individuals from the Spanish Government, as well as from Nicolás Maduro's regime in Venezuela. The Spanish Council of Ministers approved the bailout for Plus Ultra, and the Anti-Corruption Prosecutor's Office is responsible for investigating the use of the funds. Judge Jaime Serret is the one who allowed the unblocking of the additional funds, a decision that has been contested by VOX.
Within the context of the Venezuelan regime, Nicolás Maduro, as president, is a key figure in the context of the irregularities in gold sales and public funds allocation. The Bank of Venezuela and the CLAP program are state entities also under scrutiny for their relation to resource misappropriation. A money laundering network that connects these actors to illicit operations has been identified, complicating the situation even further.
Gold Movement from Venezuela to Spain
The movement of gold from Venezuela to Spain, in the context of the Plus Ultra case, has involved methods that include export through intermediary companies acting as fronts. These companies facilitate the buying and selling of gold without tracing its origin, allowing it to enter the Spanish market. Fund transfers related to gold purchases have been made through foreign accounts, where money obtained from these sales is laundered.
Although gold smuggling to Spain may not be as common as to other neighboring countries, there may be clandestine routes used to introduce gold into the country without passing through customs controls. It has been reported that some Venezuelan gold could be sold to companies in the United Arab Emirates, which in turn facilitate its movement to Europe, thus avoiding scrutiny. At times, false documentation has been used to justify the origin of the gold, distorting its traceability.
The money laundering networks under investigation are linked to criminal activities that include the sale of gold in Venezuela. It is suspected that the sale of gold is also used as a method to launder money through the purchase of luxury goods in Spain, allowing the integration of illicit funds into the economy.
Summary of the Koldo Case
The Koldo case refers to irregularities in emergency contracts related to COVID-19 and was named after Koldo García, a former official and mediator between the Spanish Government and contracting companies. This case gained notoriety in March 2022, following complaints made by the Popular Party regarding irregularities in the purchase of medical supplies.
The Spanish Government, led by President Pedro Sánchez and the PSOE, has been at the center of this scandal. Koldo García, who was an advisor to former Minister of Transport José Luis Ábalos, and Víctor de Aldama, a businessman and lawyer considered a "fixer" in the negotiations, are among the main actors involved.
Alarmingly inflated prices were reported in the buying and selling of medical supplies, with price increases of up to 600% in the acquisition of masks. The implicated company, Soluciones de Gestión y Apoyo a Empresas S.L., went from not billing to 54 million euros in 2020, obtaining a profit of 17 million euros from contracts during the pandemic.
Koldo García and Víctor de Aldama were arrested on February 20, 2024, accused of influence peddling, bribery, and integration into a criminal organization, although they were released two days later. José Luis Ábalos has also been accused of being a key player in this scheme, with charges being requested by the Anti-Corruption Prosecutor's Office.
In the context of government aid, Air Europa received a bailout of 475 million euros during the pandemic. The link to Venezuela is established through a debt of 200 million dollars with Air Europa since 2013, for which Aldama was hired to manage the collection.
Delcy Rodríguez, the vice president of Venezuela, has been involved in negotiating this debt and in the purchase of 104 gold bars valued at 68.5 million dollars. Payment proposals included cryptocurrencies and oil from Pdvsa but were rejected. This case is also linked to a scandal known as Delcygate, where gold contracts were found on Aldama's laptop, related to gold sales as medical supplies.
Rodríguez's arrival in Madrid in January 2020, despite a ban on entering the EU, has generated further controversy. Other involved actors include Henrique Rodríguez, president of Suelopetrol, implicated in the purchase of a chalet for Ábalos, and Jorge Giménez, president of the Venezuelan Football Federation, who has maintained close financial ties with Rodríguez.
The context of gold extraction in Venezuela is situated in the Strategic Development Zone of the Orinoco Mining Arc, an area designated for mining extraction, marked by human rights violations and labor exploitation. Political reactions have included apologies from Pedro Sánchez, who apologized for the corruption issues, although he distanced himself from any direct responsibility.
Conclusion
The Plus Ultra case, along with the Koldo case, represents a complex web of connections between actors from the Spanish Government and Nicolás Maduro's regime. Both cases are intertwined by concerns about corruption, misuse of public funds, and money laundering. Ongoing investigations by the Anti-Corruption Prosecutor's Office seek to unravel the relationships between those involved and establish the responsibility of each actor.
The situation surrounding the bailout of Plus Ultra and its implication in the movement of gold from Venezuela underscores the need for more rigorous oversight of financial operations and transparency in the use of public funds. The monitoring of these cases will be crucial to setting a precedent in the fight against corruption and money laundering in Spain, as well as protecting the integrity of the country's financial system.
Credits:
El País
ABC
The Vanguardia
The World
The Reason
The Confidential
The Diary
Expansion
Vozpópuli
Diary
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