Financial Crime World

Palace of Catalan Music Foundation: Former CDC Party and Executives Ordered to Repay €6.6m in Financial Fraud Case

The Barcelona Provincial Court delivered a damning verdict against the former Democratic Convergence of Catalonia (CDC) party and several of its executives, ordering them to return €6.6m (£5.9m) after finding them involved in an illegal kickbacks-for-contracts scheme.

Prison Sentences Handed Down

On Monday, the court handed down prison sentences to 12 individuals, including:

  1. The former CDC treasurer Daniel Osàcar
  2. The former president of the Palace of Catalan Music auditorium foundation, Fèlix Millet
  3. Millet’s longtime associate Jordi Montull, who headed the foundation
  • Millet was sentenced to nine years and eight months in prison for embezzlement.
  • Montull received a term of seven years and six months.
  • Osàcar was sentenced to four years and five months in prison for influence peddling and money laundering.

Two former Ferrovial chiefs were acquitted.

The Palau Case: A Corruption Scheme

The long-running Palau case investigated the Spanish construction company Ferrovial’s dealings with the CDC from 1999 to 2009, uncovering a corruption scheme where Ferrovial paid commissions to the CDC in exchange for public works contracts. Money was funneled through the music venue, the Palace of Catalan Music, to conceal the transactions.

According to the court, Millet and Montull offered the CDC and Ferrovial the “entire economic structure of the Palace of Music” to keep the illegal payments and commissions hidden. These funds were used to benefit Millet, Montull, and their families.

A Legacy of Corruption

This scandal becomes emblematic of the corruption cases that have plagued the administrations of the former Catalan presidents Jordi Pujol and Artur Mas.

At the time of this scandal, Mas had stepped down as regional president two years ago due to corruption allegations and economic cuts made by his government. The far-left Popular Unity Candidacy refused to form a coalition because of these issues.

Last week, Mas relinquished his role as the leader of the Catalan European Democratic Party, the successor to the CDC, stating that Catalan politics needed new leadership. He denied that his decision was in any way related to the Palau case.