The Spanish Socialist Workers’ Party (PSOE) is reeling from a cascade of arrests and investigations.
The arrests have exposed alleged networks of bribery, influence peddling and money laundering stretching from the Covid-19 mask procurement scandal to State-owned enterprises.
In a dramatic escalation yesterday, Spain’s Central Operative Unit (UCO) of the Guardia Civil detained three prominent figures linked to the party.
They are Leire Díez, a longtime PSOE advisor known as “the plumber” for her work “in the sewers” of the party; Vicente Fernández, the former president of the State holding company Sociedad Estatal de Participaciones Industriales (SEPI); and Antxon Alonso, a business associate of PSOE organisational secretary Santos Cerdán.
The probe, which has already ensnared former transport minister José Luis Ábalos and his aide Koldo García, now appears to implicate Deputy Prime Minister María Jesús Montero and high-level party operatives, prompting fierce denunciations from opposition parties.
The latest detentions have thrust SEPI into the spotlight, with investigators alleging that the State firm’s former leadership served as a conduit for laundering proceeds from the alleged Koldo García scheme.
The investigation focuses on alleged fraud, embezzlement, influence peddling and prevarication.
Vicente Fernández, who presided over SEPI for just 15 months between 2018 and 2019, was handpicked for the role by Montero upon her appointment as finance minister that year.
Under his tenure, SEPI allegedly funnelled public funds into favoured contracts, including a €53 million bailout for the struggling airline Plus Ultra.
Its offices were also raided by the UCO yesterday as separate judicial probe indirectly connected to Begoña Gómez, the wife of Spanish Prime Minister and PSOE Secretary-General Pedro Sánchez, via an advisory board invitation and PSOE lobbying ties.
Fernández’s personal finances raised red flags. His real estate holdings ballooned to €4 million during his SEPI stint, a windfall investigators link to alleged illicit gains.
After leaving the SEPI in 2019, Fernández, who was the leader of the Andalusian PSOE branch, worked as an adviser to Servinabar. That company, according to the UCO, was co-owned by Cerdán and Antxon Alonso, who is suspected of channelling laundered money through a Seville bar he owns – a venue described by staff as a front for unexplained cash flows tied to the so-called “Koldo plot”.
Alonso, Cerdán’s partner in Servinabar, was picked up in the same sweep, with evidence allegedly suggesting the firm served as a vehicle for distributing kickbacks.
In just seven years, Fernández and his wife have purchased two villas in the exclusive La Juliana estate in Bollullos de la Mitación — where top footballers as Sergio Ramos and Pilar Rubio live. In addition were three apartments, one in Ciudad Puerta de Hierro and two in an upscale residential area in eastern Marbella, next to two garages and two storage rooms, news outlets reported based on investigators’ assessments
The UCO’s 19 searches, including of Plus Ultra’s servers, aim to trace these funds, with early estimates pointing to a €6.7 million “booty” already uncovered.
Montero, now First Deputy Prime Minister and a close ally of Sánchez, has maintained a conspicuous silence amid the uproar.
🔴 ACTUALIZACIÓN CASO PSOE I Detenidos Vicente Fernández (mano derecha de Montero), Leire Díez (fontanera) y Antxón Alonso (socio de Cerdán).
Se producen registros en Sevilla, Madrid y Zaragoza.
¡María Jesús Montero en el centro de todo!
(Habrá actualización…) pic.twitter.com/TTjGPrkFyO
— PP de Andalucía (@ppandaluz) December 11, 2025
Opposition voices have branded her the “personification of Socialist corruption”, accusing her of presiding over two decades of scandals. Both the Vox party and the Partido Popular (PP) are demanding elections.
Miguel Tellado, general secretary of the centre-right PP alleged the latest expansion of the corruption scandal showed that both the government and the Socialist Party are “rotten to the core” and “exploding in mid-air live and in front of the Spanish people”.
Tellado directly implicated Sánchez, asserting that “nothing could have happened without him”. He demanded Montero’s immediate resignation alongside snap elections for what he called the sake of “political hygiene”.
Leire Díez, dubbed the PSOE’s “fontanera” or “plumber” for her role in plugging leaks and managing crises, was arrested alongside Fernández and Alonso on charges of bribery and trafficking in influence.
Already under scrutiny in a separate case alleging an attempt to discredit prosecutors investigating the Koldo affair – described by critics as a “State operation” to neutralise judicial oversight – Díez’s detention seemingly ties the threads of multiple probes together.
Her links to Fernández, forged through SEPI dealings under Montero’s patronage, underscore the alleged fusion of party loyalty and personal enrichment.
The major corruption scandal rocking the progressive Spanish Government, the Koldo Case, has taken a lewd turn, with prostitutes and a porn actress joining the fray. https://t.co/qek0RWipyW
— Brussels Signal (@brusselssignal) June 19, 2025
At the heart of the unfolding crisis lies the Koldo case, a sprawling investigation into allegedly corrupt dealings during the height of the pandemic.
Koldo García, once a trusted confidant of Ábalos, stands accused of orchestrating a scheme to inflate prices on medical supplies, pocketing millions in kickbacks from suppliers.
The scandal first erupted in February 2024, leading to Ábalos’ expulsion from the PSOE and his subsequent imprisonment alongside García in Soto del Real prison.
Spain’s Supreme Court confirmed their processing for corruption offences on December 9, paving the way for a trial that could further tarnish the government’s image.
Santos Cerdán, once the PSOE’s powerful organisational chief, has emerged as a pivotal figure in the web of allegations. Intercepted messages from 2018 reveal Cerdán providing García with contacts of Moroccan ministers, suggesting efforts to expand the allegedly graft-ridden network beyond Spain’s borders.
Audio recordings, which Cerdán has contested as manipulated through a commissioned expert report, apparently capture discussions of “mordidas” or “kickbacks” and political favours, including appointments and contracts.
The PSOE’s Andalusian branch, a traditional stronghold, has been repeatedly cited in connections to Cerdán’s alleged plots, with party insiders reportedly benefiting from the illicit funds.
Cerdán’s wife, known as “Paqui”, has sought to delay her scheduled testimony before the Senate by citing health issues, further fuelling speculation about the family’s entanglement.
As the UCO’s investigation presses on – with 21 months already elapsed since the initial Koldo arrests and no end in sight – the scandal threatens to erode what remains of public trust in Spain’s left-leaning coalition.
In addition to all the corruption investigations, the PSOE is facing further scrutiny over multiple allegations of sexual harassment within its ranks.
Reports indicate that at least six women have come forward accusing senior party figures of inappropriate behaviour, ranging from unwanted advances to explicit messaging and promises of career advancement in exchange for sexual favours.
One of the most high-profile cases involves José Tomé, president of the Provincial Council of Lugo, who has reportedly stepped down or been pressured to do so amid these accusations.
The controversies are compounded by criticism that the party has historically mishandled internal complaints. Former senior adviser Francisco “Paco” Salazar, for example, faced harassment allegations earlier in 2025 but internal mechanisms were slow to respond, prompting public outcry.
Similarly, Antonio Navarro, PSOE leader in Torremolinos, is under investigation for separate allegations, highlighting a broader pattern of misconduct allegations affecting multiple levels of the party.
Internal party members and affiliated feminist groups have publicly condemned these alleged incidents, stressing that they undermine the PSOE’s stated commitments to gender equality and feminist principles.
Francisco Salazar, a close ally of Spanish Prime Minister Pedro Sánchez and a top figure in the Spanish Socialist Workers’ Party, has resigned amid allegations of sexual harassment. https://t.co/KqPECfV9gP
— Brussels Signal (@brusselssignal) July 7, 2025
