Building corruption has begun to defile the image of Spain. TRANSPARENCIA INTERNACIONAL, the pioneering NGO and the most important one that is working against corruption throughout the world, pin points the actions taken by town halls as the principal problem in Spain from the point of view of corruption.

The 2006 Report, recently published, starts from the premise that “the area where corruption is highest is at the level of local government”, above all “on the coast (…) or around large towns”. The cause of this phenomenon, according to TRANSPARENCIA INTERNACIONAL, has to be looked for in “the evaluation of urban land”, which has made Spain the country in the OECD “where the price of housing has risen most in recent years”.

TRANSPARENCIA INTERNACIONAL calls to mind a report from the Spanish Ombudsman in which he indicates that planning agreements allow the owner of land to agree to cede land, independently of what the law demands, or even pay money, in exchange for the municipality in question reclassifying the land or increasing the building density on it once the corresponding agreement is signed. This practice, according to the NGO, has made it possible at the present time for “a great many examples of corruption to arise”.

Finally, they cite nine methods of operating:

1. Practically all mayors are in favour of planning agreements as a way of obtaining funds.

2. Modification of plans is frequent. In the last four years, in Mallorca alone, various municipalities have modified their town plans on 227 occasions.

3. Control of illegal building or the alteration of agreed plans is very low.

4. Sanctions usually consist of fines and hardly ever result in demolition.

5. There is an enormous amount of black money in Spain, which naturally finds a haven in construction. On average one third of the price of a house is paid with dubious money, causing very large losses to the Inland Revenue.

6. The monopolisation of land in private hands has been allowed, which creates an apparent scarcity and the consequent rise in prices.

7. Individuals have had their land expropriated to grant it to businesses with social objectives. Once the land is in their ownership, they have sold it later at astronomic prices.

8. There is a spreading practice of builders creating fictitious political parties that present themselves at local elections so that they can get the town planning post and from there take decisions that favour them; alternatively they infiltrate the traditional parties with the same purpose.

9. Building corruption is growing and does not respect any institution, so that, where such corruption is rife, the courts have suffered the consequences, the case of Marbella being the best known.

Financing of political parties

The report reminds us that in Spain, as in other European countries, adequate regulation of the financing of political parties is still to pending. And therefore, until this question is resolved, “it will be normal for scandals to arise regarding bribes and extortion in public works”. The report recalls the scandal that arose in Cataluña after the President Maragall revealed the existence of commissions of 3% paid to the CiU government.

The conclusion that TRANSPARENCIA INTERNACIONAL comes to leaves no room for doubt: “The basic problem is not due to the corrupt actions of individuals, but the institutionalised corruption linked to the illegal obtaining of funds for political parties. This is the principal cancer and against which the new Government must show its moral strength of character”.

For the full Report [in Spanish], see http://www.transparencia.org.es/INFORME%20GLOBAL%202006/Informe%20TI-España%202006.pdf

National Chapter in Formation - Spain

Transparency International España

Address:
Fundación José Ortega y Gasset
Calle Fortuny, 53, 28010 Madrid
Spain

Email: transparency.spain@transparencia.org.es

Website: Transparency International España - http://www.transparency.org/contact_us/organisations/transparency_international_espana

Contact Person: Mr Jesús Lizcano Chairman
Phone: +34-91-700 41 05
Fax: +34-91-365 51 69

For more details about the world-wide work of TRANSPARENCIA INTERNACIONAL, see their website at http://www.transparency.org/