Spanish judge orders PM's ex-ally to be remanded in custody in graft probe

The Cerdan case was the latest and most serious in a series of scandals that have left Sanchez having to apologise and fend off calls from opponents for a snap election. Judge Leopoldo Puente is investigating allegations against Cerdan, former Transport Minister Jose Luis Abalos and the latter's aide Koldo Garcia that they received kickbacks for awarding public works contracts.

Cerdan, who resigned earlier this month from his position as the Socialist Party's third-ranking official and lawmaker, denies the allegations. Both Abalos and Garcia say they are innocent. His resignation followed Puente's statement citing "strong evidence" of Cerdan's possible involvement in the "improper awarding" of contracts.

Sanchez on Monday defended his Socialist Party's handling of the corruption allegations against Cerdan, saying that it had acted decisively by asking him to resign. "Justice must determine the responsibilities that Santos Cerdan may have," Sanchez told reporters during a summit in Seville.

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The latest scandal emerged from a leaked police report, published by media outlets on June 11, which alleged that Cerdán was involved in illegal commission payments tied to public contracts. The report, based on recordings made by Koldo García, a former aide to ex-Transport Minister José Luis Ábalos, estimated payments worth €620,000.

Koldo broke down three concepts: A first instalment of €450,000, linked to three contracts; another of €50,000 , related to two recent contracts, which he referred to as “the last two” and a third of €70,000, corresponding to what was called “the shoe.”

It suggested Cerdán allegedly colluded with Ábalos and García in a scheme to secure kickbacks, further implicating senior PSOE figures. Cerdán, who stepped down from his parliamentary seat and party posts on 12 June, denied the allegations, stating he would testify in the Supreme Court on June 25 in a bid to clear his name.

Koldo allegedly offered Ábalos a commission of €500,000 a month for three years from a Venezuelan oil company. On top of this, the Guardia Civil report cited intercepted messages in which Cerdán allegedly instructed his ally, Koldo García, to insert “two ballots” during the 2014 primary process won by Sánchez — effectively rigging votes.