MADRID – A Spanish court docket will examine whether or not enormous commissions charged by an aristrocratic entrepreneur and his associate on the sale of important well being provides to Madrid metropolis corridor on the peak of the COVID-19 pandemic constituted unlawful profiteering.
Effectively-known socialite Luis Medina and his associate Alberto Luceno offered $12 million value of surgical gloves, face masks and fast testing kits to Madrid, pocketing commissions of between 60% and 70% that they spent on luxurious automobiles, lavish lodge stays and a yacht, the anti-corruption prosecutor’s workplace stated on Wednesday.
The prosecutor stated the pair obtained “an exaggerated and unjustified financial profit” and accused Medina and Luceno of aggravated fraud, forgery and cash laundering.
The prosecutor additionally alleged Luceno falsely claimed he was the provider’s unique agent.
Medina, who first contacted Madrid metropolis corridor and proposed Luceno as a provider, informed Spanish information web site El Confidencial that his 1 million euro ($1.09 million) fee was authorized.
“I perceive that lots of people could not prefer it. However it's 8% of the contract. It's a regular brokerage payment, which is charged many occasions,” he was quoted as saying.
Luceno acquired a complete of 5.1 million euros in fee and hid a part of it from his associate, the prosecutor stated. He didn't reply a request for remark.
Each males have been commissioned to buy 1 million KN95 masks, 2.5 million gloves and 250,000 fast exams. Neither the gloves nor the exams met procurement standards, the prosecutor stated.
With the cash Medina purchased a yacht named “Feria” after his household’s duchy whereas Luceno purchased three Rolex watches, twelve luxurious automobiles – together with a number of Aston Martins, a Ferrari and a Lamborghini – and an upmarket Madrid flat, the prosecutor added.
Madrid mayor Jose Luis Martinez Almeida, who's going through calls to resign over the case, recognised that the contract was a mistake however defended town’s actions at a time when authorities in every single place have been scrambling for scarce provides.
“With the knowledge we had and the state of affairs we have been in, I totally help the choice that the council’s technicians took,” he stated. “We by no means knew that cash was going to finish up the place it did.”
The court docket stated on Thursday it can name each businessmen and a few witness to testify and has requested Madrid if town needs to be a part of the judicial proceedings.
Reuters was not capable of contact Medina.
($1 = 0.9166 euros)
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