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Corruption scandal in Marbella explodes - 29 March 2007

The Spanish Government has taken the landmark decision to dissolve Marbella's town council after a long investigation into a multi-billion property scandal.

Marbella's Mayor, Deputy Mayor and the head of town planning were arrested after a probe into a long-standing housing boom in and around the renowned town on Spain's Costa del Sol. A total of twenty three people have been arrested to date for crimes including embezzlement of public funds, bribery and price fixing.

The investigation, codenamed Operation Malaya, began in March 2006 with the arrest of the former Mayor, Juan Antonio Roca. Spanish Police claim a series of international groups were laundering cash through property deals in the Costa del Sol.

The suspects face possible charges of laundering money from property developers, who allegedly paid exorbitant amounts for building permits in the Costa del Sol resort area. Police estimate that the scams involve a figure in the region of 2.4 billion euros.

Announcing the Government's decision, Deputy Prime Minister Maria Teresa Fernandez de la Vega revealed that new elections would be held in May 2007.

 

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