Palma.—A corruption scandal which has plagued the Partido Popular for months has intensified this week after revelations by the former party treasurer.

Luis Barcenas claims that the party has been financed illegally for the last 20 years, taking payments from property firms and other companies. Now there are documents to show the scandal goes as high as the Prime Minister, Mariano Rajoy.

The documents published in the media show the name of the current Prime Minister Mariano Rajoy and two payments of 12'600 euros. The ledger was reportedly operated by former party treasurer Luis Barcenas, who is in custody facing trial for corruption and tax fraud. He has denied the allegations but did admit the handwriting was his.

The revelations prompted street demonstrations, calling for Rajoy to resign. One woman said: “The PP is synonymous with corruption in all Spanish institutions. For this reason we want an immediate resignation and we call for new general elections as soon as possible”.

In Madrid's corridors of power, ministers in the People's Party were defending the PM against calls for resignation. The Spanish agriculture minister, Miguel Arias Cañete, told reporters he absolutely supported Rajoy and the Mayor of Palma, Meteo Isern said yesterday that be believes in the prime “but if it arises that the party is responsible, then explanations will be required,” he added. “Up until now all we have is Rajoy denying the accusations which there is no real hard evidence to support, so why are people burying the truth and determined to destroy the PP,” Isern said. “Why can't people believe in the Partido Popular?” he added.

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