Authorities in Spain are probing the manipulation and conflict of interest between the former Finance Minister Cristóbal Montoro and his alleged close relationship with Codere SA.
According to reports, Mossos d’Esquarda, the Autonomous Police Agency of Catalunya, has published the initial findings of its investigation into ‘Equipo Económico’ – the former consultancy practice of Montoro.
Montoro has twice served as Finance Minister of Spain under the former Partido Popular (PP) conservative governments of PM José María Aznar (2000-2004) and PM Mariano Rajoy (2011-2018).
The probe relates to Monotoro’s former business contacts, dealings and lobbying before retaking the position of Finance Minister under PM Rajoy. Montoro is reported to have had a close business relationship with Codere board member Rafael Catalá, who was later appointed Minister of Justice under PM Rajoy.
Historical allegations
At the centre of the investigation is Montoro’s alleged actions following the establishment of Gambling Law 13/2011 in June 2011, which was passed by the Democratic Socialist Workers’ Party (PSOE) and was authorised to regulate Spain’s rapidly growing online gambling industry, introducing licensing, tax obligations, and compliance protocols.
Once the Partido Popular entered power in December 2011, Montoro’s Ministry of Finance allegedly manipulated regulations in favour of domestic firms – including Codere.
Emails seen by the Catalan Police show that Montoro’s team, in coordination with the National Fraud Investigation Office (ONIF) and Equipo Económico, developed a licensing structure that demanded companies to settle retroactive tax debts before being granted a licence.
Although no foreign companies have been mentioned, investigators cite that this created a competitive disadvantage for international operators, and, at the time, Montoro warned that Spain’s iGaming market would be suspended unless foreign operators agreed to pay between €150m and €200m in retroactive taxes.
Heritage firms benefit
The beneficiary of Montoro’s alleged actions appears to be Codere, a Spanish heritage gambling group.
The firm reportedly paid €679,000 to Equipo Económico between 2008 and 2012, and at the time, Rafael Catalá served as Secretary to Codere’s Board, highlighting the close association between regulatory decisions and private sector interests.
In 2011, Codere was undergoing a major corporate restructuring and actively seeking financial refinancing with its bondholders due to significant debt levels, which threatened its existence.
The case continues to develop, as investigators try to unveil the extent of the coordination between Montoro, Codere, and Equipo Económico.
In previous remarks, Montoro dismissed the allegations, claiming they were politically motivated attempts to undermine his time in office and asserting that the reporting was inaccurate.
As of now, Codere has not made any official public statement directly addressing the allegations related to the Mossos d’Esquadra investigation, Equipo Económico, or its relationship with Montoro. Rafael Catalá no longer holds an executive or board-level position at Codere SA.
