Penthouse purchase sparks political firestorm

Isabel Díaz Ayuso’s Madrid regional government is facing a widening political and legal fight over a luxury penthouse bought through the public company Planifica Madrid. The property, in Chamberí, was purchased on April 14 for €6.3 million and was initially presented as a temporary office solution during works at the Real Casa de Correos, according to multiple Spanish media reports. Opposition parties have since challenged both the stated purpose of the purchase and the way it was financed. On September 1, the pressure increased again when Más Madrid and the PSOE moved to deepen their role in the case. ### Why is a Chamberí penthouse at the center of the dispute? Planifica Madrid bought a 485-square-meter penthouse in Chamberí for €6.3 million, according to El País and other Spanish outlets. The regional government had said the property was meant to serve as a temporary workspace linked to the renovation of the Real Casa de Correos, the headquarters of the Madrid regional government. (elpais.com) El País reported that the building where the property is located only allows residential use for the homes inside it, a detail that fueled questions about whether it could legally serve as office space. After the purchase became public, the Ayuso government moved to sell the property for about €6.7 million. (elpais.com) ### What are opposition parties alleging? Más Madrid said on September 1 that it wanted to appear in the criminal case as a popular accusation, arguing that the operation could involve prevarication, embezzlement, fraud against the administration and disloyal administration of public assets. The PSOE had already taken steps earlier in August by filing a complaint over the purchase with prosecutors. (elpais.com) The PSOE said there were “gaps and procedural irregularities” in the transaction, according to Demócrata’s account of the filing. Más Madrid also took the matter to the Court of Auditors, seeking a review of whether the acquisition caused a loss to public funds and whether the final cost, including taxes and related expenses, should be examined. (democrata.es) ### What questions are being asked about the money? RTVE reported on August 31 that journalists including David Fernández had questioned where the €6.3 million came from, saying budget lines of €29.2 million and €21.7 million in Planifica Madrid’s accounts did not appear to match the operation. The same RTVE report said the regional government was preparing a legal defense aimed at limiting responsibility to the company’s chief executive and avoiding direct implications for Ayuso. (democrata.es) El País reported that the purchase price was accompanied by roughly €378,000 in property transfer tax and other costs. That figure has become part of the opposition’s argument that the full public outlay, not only the headline price, should be scrutinized. ### What has the Madrid government said? (stories.rtve.es) RTVE reported on September 2 that the Community of Madrid acknowledged Ayuso visited the penthouse after the purchase had already been completed. The regional government said that when an administration buys a property it is “obvious” that it is visited, and said the visit took place after the transaction was formalized and before any final decision on temporary use had been made. (elpais.com) The Madrid government has also sought to contain the fallout by putting the penthouse up for sale. El País reported that the sale price was set at about €6.7 million, nearly €400,000 above the purchase price. ### Where does the court case stand now? Madrid Instruction Court No. 8 is investigating the purchase after receiving complaints tied to the transaction, including one that had already opened proceedings and others later forwarded by prosecutors, according to El País and Demócrata. (rtve.es) Several reports say the case centers on the acquisition by Planifica Madrid and the intended use of the property during works at the Real Casa de Correos. (elpais.com) On September 1, Spain in English reported that opposition parties were stepping up demands for full disclosure of the purchase file and for further judicial review as the political season resumed. The next concrete steps are the court’s decisions on requests by Más Madrid and the PSOE to participate directly in the proceedings, and the Court of Auditors’ review sought by Más Madrid. (spainenglish.com) (elpais.com)