Spain's PM orders investigation into ex-treasurer´s Swiss bank account

Spain's prime minister on Monday ordered an investigation into the financial activities of a former treasurer whom a court said had amassed an unexplained €22 million in Swiss bank accounts in a corruption case that has outraged crisis-weary Spaniards and threatens to stir a deeper party crisis.

After days of intense public and media pressure, which saw party leaders try to distance themselves from any alleged corruption, Mariano Rajoy told party leaders during a meeting of his ruling Popular Party (PP) that he had ordered a "thorough internal investigation that will be submitted to an external audit", according to Spanish media.

An ongoing judicial investigation of former PP treasurer Luis Barcenas last week showed he had a Swiss bank account which at one point held as much as 22 million euros, according to a court document and statements by court officials.

Barcenas stepped down as party treasurer in 2009 when judges began to investigate his possible involvement in alleged illegal payments and kickbacks to party officials from builders and other businesses that won government contracts.

Earlier, PP general secretary Dolores de Cospedal denied knowing anything about the money or newspaper reports that Barcenas had distributed "black cash bonuses" from the construction industry to some of its top leaders.

Rajoy, battling Spain´s second recession in three years and with the unemployment rate at 25 percent, the highest in the European Union, has said his hand "would not tremble" if revelations of alleged corruption in his party proved to be true.

"There are matters before the courts, and those courts are acting," he said during the weekend.

Sensitive subject

Political and corporate corruption is a sensitive subject in Spain at a time when the government has slashed education and health spending to rein in the budget deficit in the country where a quarter of the workforce is unemployed.

Spain is going through a harsh recession and financial crisis after a prolonged housing and construction bubble burst in 2008, leaving banks with hundreds of billions of euros in bad loans to builders.

Since then, courts have looked into many accusations of ties between politicians and builders that won development deals.

The Spanish press has been scathing about the party's apparent inaction, and the normally supportive newspaper El Mundo said on its front page Saturday that the impression the Popular Party is giving is that it is "debating whether to cover up the secret payments or investigate them."

While still in opposition, before taking office in November, Rajoy often showed public support for Barcenas.

The court revelations led to impromptu street protests in Madrid and Barcelona on Friday and Saturday.