Tuesday, October 12, 2010

€14 million tax fraud uncovered in 2006 Pope's visit to Valencia

The tax office, Hacienda, has denounced multiple tax fraud and corruption in the spending of 14 million euros by the Valencian Public TV corporation (RTVV) in 2006 to cover the Pope's visit to the V World Family Forum, held that year in the city.

The investigation is part of the Gürtel tax fraud, in which a network of companies bribed PP officials across Valencia and Madrid for the illegal awarding of public contracts.

"The actions developed by the management body have been designed to manage and allocate all the supplies and services in a totally random and subjective manner, avoiding compliance with the principles of openness, competition, transparency and objectivity." says the official report, investigated by the Treasury at the request of the judge in the case Gürtel in Madrid, Antonio Pedreira. 

It highlights  multiple illegalities committed by the managers of the Valencian regional television (RTVV) in the awarding of contracts during the Pope's visit to V World Family Meeting that was held in 2006.

According to the report, the Valencian television spent during the visit of Pope 14,713,940.75 euros. 

In the various contracts were signed, there was a "widespread disregard of the principles of advertising and competition" when awarding services or supplies "when due to the amount should have been handled through open recruitment or business and that such contracts were awarded under "splitting the contract, a procedure that" has been used very broadly. "

The Legal Support Unit, responsible for the report, also believes that managers knew in advance of RTVV services to be contracted to cover the Pope's visit. 

However, due to lack of planning "virtually all cases" were handled via the emergency procedure in order to "violate the principles of openness and competition and procurement procedures." in exchange of personal gain and profit.

Regional television, according to the report dealt with 231 bills from 97 different suppliers for an amount of 1,431,452.94 euros. 

In addition, EUR 218,660.85 spent in 183 contracts of employment for work and spent the bulk of their investment, EUR 13,038,809.47, eleven cases of recruitment.

Of these, the largest supplier was Teconsa, implicated in other Gürtel cases, for a value close to 7.5 million. Teconsa is believe to have paid out over a million euros in "commissions" during 2006 alone.

SIC: TH/ES