The conservative president of Madrid is facing one of the biggest controversies of her premiership over the purchase of a luxury penthouse.
Isabel Diaz Ayuso, of the Partido Popular, is in hot water after it emerged the regional government’s property company, Planifica Madrid, bought a rooftop apartment in the upmarket Chamberi district of the capital.
The exact price has not been confirmed, but multiple Spanish reports put the figure at around €6.3million.
The deal is now being investigated by the PSOE party and is set to be referred to prosecutors.
After the purchase came to light, the property is now due to be sold.
The Madrid government says the proceeds will be used to help rebuild areas devastated by this summer’s wildfires – in what critics are saying is merely an attempt to save face with the electorate.
Why is it controversial?
The row erupted after reports claimed the luxury apartment had been purchased as a temporary office for Ayuso while renovation work is carried out at the Real Casa de Correos, the headquarters of the Madrid regional government in Puerta del Sol.
Opposition parties insist the real purpose was to provide the regional president with a luxury residence or private workspace using public funds.
Ayuso has repeatedly denied this, saying the property was never intended to be her home and referring all questions about the purchase to her Presidency Department.
Madrid government defends purchase
Miguel Angel Garcia, Madrid’s regional minister for the Presidency, insists the apartment was acquired solely to meet the operational needs of the regional administration.
He argues that Madrid is unusual among Spain’s regions because it does not provide its president with an official residence, unlike many other autonomous communities and even several national government ministers.
Garcia has accused the political left of taking the issue ‘out of context’ to distract attention from other national controversies.
The regional government has since announced it will sell the Chamberi penthouse, together with four other residential properties it owns on Gran Via, raising an estimated €20million for wildfire reconstruction projects.
PSOE to file criminal complaint
The controversy has now escalated after the Madrid Socialist Party (PSOE) announced it will file a criminal complaint with the Prosecutor’s Office for Economic Crimes.
PSOE Madrid leader Oscar Lopez, who also serves as Spain’s Public Administration Minister, said prosecutors should investigate possible offences including malfeasance (prevaricacion) and misuse of public funds (malversacion).
Lopez said his party would ask the courts to obtain the property’s title deeds, purchase contract and all related documentation.
‘We are asking the courts to act. It is impossible to justify a document like this,’ he said.
He also called on Ayuso to resign, accusing her administration of giving contradictory explanations about the apartment.
‘The minister knows he was buying a penthouse for the president,’ Lopez alleged.
‘If she wants an official residence, it should be done transparently. It cannot be done secretly and illegally to buy a luxury penthouse tailored to her wishes.’
Political pressure mounting
The affair has become one of the biggest political challenges Ayuso has faced during her time in office, with both PSOE and Mas Madrid demanding answers.
Mas Madrid has already announced plans to take the case to court, while leader Monica Garcia has accused Ayuso of trying to escape the scandal by quickly selling the property after details of the purchase became public.
Ayuso, meanwhile, continues to insist the apartment was acquired for official government use and says the decision to sell it reflects the regional government’s determination to prioritise rebuilding communities affected by the recent wildfires.
