It isn’t the trial of the century but it is a case that has helped blow open the dubious dealings of the king’s son-in-law. Jaume Matas was a very rich politician who, according to prosecutors, made his money by handing out favours to his cohorts and cronies when he served as regional premier of the Balearic Islands.
Matas was an ambitious man, who wanted to turn Majorca into the next Monte Carlo. He spent a great deal of his second term transforming the Mediterranean islands into a first-class resort, complete with an opera house overlooking the sea, a subway system that would put Rome’s limited tube network to shame, and a sports centre built with Siberian pine imported from Ukraine. There was a lot of money going around during the early part of the decade, much of it passed out in €500 notes.
Then came an anonymous call to the authorities. Matas’ wife and brother-in-law were spending cash on jewellery and dress clothes as if it were going out of style. The Popular Party (PP) politician was also buying Italian furniture, fine paintings and vintage wine. They say his palatial home in Majorca cost €4 million. The elegantly dressed Matas also made it a point to groom his image. Spending hundreds of thousands of euros, the island chief wanted the people to like him. His flashy, friendly smile was posted in more than 30,000 photos taken by his PR people and seen all over the islands. It was precisely that public relations campaign that has Matas in the dock – his first trial out of many. Investigators say that he handed out public contracts to El Mundo journalist Antonio Alemany to write his speeches and publish articles in Spain’s second leading daily glamorising his administration and the work he was doing to make the islands into a playground for the rich and famous. The problem was that many of the articles never got published, and Alemany, according to prosecutors, took the money and ran.
After that now-famous phone tip about the wife’s shopping sprees, Madrid investigators began to discover a host of irregularities taking in place in the Matas fiefdom. That glorious Palma Arena sports complex – the one that would be inaugurated with a special tennis tourney by Roger Federer and Majorca golden boy Rafa Nadal – cost nearly three times more than the €44 million that was budgeted for it. Where did the rest of the money go? Prosecutors want to know. The criminal probe turned into massive investigation with 26 separate cases that could end up in 26 different trials. Matas was handing out contracts left and right, and King Juan Carlos’ son-in-law, Iñaki Urdangarin, also allegedly profited. The former Spanish Olympic handball player and husband to the Infanta Cristina reportedly received some €3 million in contracts from Matas’ government to organise sports and tourism conventions. The money was given to a non-profit institute set up by Urdangarin and his partner, Diego Torres, and, according to investigators, later funnelled to the royal son-in-law’s private businesses, including several firms in which the king’s daughter was also a partner. Urdangarin has been indicted and subpoenaed to appear in court next month; the Infanta Cristina has not been charged.
Matas was apparently a true operator. Two years ago, during the Christmas holidays, the regional premier received some uninvited guests at his home. They were armed with a search warrant and were looking specifically for one thing. There had been rumours of a secret safe in the Matas home that the Balearic chief and his wife used as their petty cash box. It was well hidden behind a closet and it took time for authorities to find it.
Despite the money they spent on their luxurious haven, the Matas didn’t have much time to enjoy their palatial abode. Following his arrest in 2010, the former regional chief had to put up his home as collateral for bail. Now he stands to lose it later this month when it goes on the auction block after he failed to pay interest on the Banco de Valencia loan he took out for the bond to keep him out of jail. This entire Balearic corruption ring broke wide open just because one woman was passing around too many €500 notes.
By Martin Delfin, Martin writes for the English language version of El Pais
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