Catalonia: Transparency International highlight construction - political corruption link

Think Spain: 'Report highlights widespread corruption in construction sector' | “A nine point finding by Transparency International has found that corruption over building projects in Spain was mainly responsible for the rise in house prices. The report also concluded that local town halls were becoming riddled with corruption as a result of building projects, citing the case of Mallorca, where several towns have modified some 227 times their different urbanisation plans. The report also states that an enormous amount of 'black money' is involved in the construction business, and as a result the loss in taxes for the Finance Ministry is said to be "very considerable."”

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http://tinyurl.com/jaweb

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Transparency International: 'Property is a corruption host' | “Marbella tops the list of town halls that have suffered corruption scandals in recent years. Two former mayors, Jesús Gil and Julián Muñoz, were banned from holding public office. Gil approved a zoning plan for Marbella that was illegal and was being investigated on 15 counts of corruption and links to Italian and Russian mafia bosses when he died in 2004. The Andalusian government announced plans in early 2005 to overhaul the Costa del Sol’s urban planning process. The new plan would take away zoning and licensing powers from local authorities that consistently fail to implement the appropriate building regulations and laws.

Catalonia has also been in the headlines for corruption involving real estate. In the so-called ‘3 per cent case’, investigators uncovered a connection between corruption in the construction sector and political party financing. In February 2005, the president of Catalonia accused the former government of charging a 3 per cent commission on public works contracted out during its period in office. The sum was allegedly used to finance the coalition that has dominated power for more than 20 years. In March 2005, Catalonia’s parliament established a commission to investigate irregularities in public works between 1995 and 2005 that contributed to the collapse of houses in the Barcelona neighbourhood of Carmelo, due to errors in building a metro tunnel. The commission will also look at possible violations to political financing laws.

Suggestions of a link between corruption in the construction industry and party financing were raised in the Marbella scandal as well. No substantive changes have been made to the institutional and legal framework governing party financing in recent years, however, despite the prominent scandals of the 1990s and many electoral campaign pledges.”

http://tinyurl.com/kefy4

(PDF - page 250 for Spain)

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El confidencial: 'Demoledor informe internacional: la corrupción urbanística dispara el precio de la vivienda en España' | “La corrupción urbanística empieza a manchar la imagen de España. Transparencia Internacional, la organización no gubernamental pionera y más importante en la lucha contra la corrupción en el mundo, sitúa la acción de los ayuntamientos como el principal problema de España desde el punto de vista de la corrupción.”

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http://tinyurl.com/zx73q