SPAIN: Prison for Conde, the Socialist Era Banker

By Tito Drago Reprint | | Print |

Tito Drago

MADRID, Mar 20 1997 (IPS) - Mario Conde, the Spanish lawyer who became a leading banker under the government of Socialist President Felipe Gonzalez (1983-96), was sentenced to six years imprisonment Thursday.

The High Court found Conde guilty of the misappropriation of funds and creating false documents, in the first of a series of trials following intervention by the Spanish Credit Bank (Banesto), decreed on Dec. 28, 1993.

Conde, an obscure lawyer in 1982, proved Carlos Solchaga, Gonzalez’s Economy Minister, was right in the first years of the socialist government, showing Spain was the best place to earn easy money fast.

He bought and sold a series of companies, and taking advantage of his good relations with powerful people, Conde took control of Banesto, one of the five biggest Spanish banks. From this basis, he gained strong positions in communication companies sponsoring cultural events of all types and forging his political image.

In 1992 he even funded meetings in Moscow, presided over by Gonzalez, and was made honorary doctor by the Complutense University of Madrid, in a presentation headed by King Juan Carlos, and attended by leading political, economic, cultural and business figures.

But his star began to lose its shine this same year. The economic recession which followed the Gulf War suffocated Banesto and Conde’s political ambitions made him appear an enemy of the socialist government.

With the argument that its financial situation could endanger the whole banking system, the State intervened in Banesto which was later offered for public sale, going into the hands of Santander, another of the five leading banks.

Meanwhile, Conde began a long journey through the legal maze. He was arrested and imprisoned, released on bail for house arrest, and now back to prison again.

And this is only the first legal process facing Conde. He was also ordered to pay Banesto slightly over four million dollars – a sum equal to a payment he ordered to a fictitious company in a banking paradise.

Various tales are circulating on this money. Two years ago, Conde himself told a newspaper it was used to pay for political influence, and in the trial he claimed it was payment for services rendered.

But the court considered there was “undue appropriation,” that is, that Conde kept the money.

The lawyer Luis Pineda, representative of the Association of Bank Users (AUBA), on hearing the sentence, said justice had started to be done, adding there were still several court cases outstanding against Conde and other Banesto executives.

Deputy Rosa Aguilar, representing the United Left coalition, classified Conde as one of the leading collectors of easy money under the socialist government.

Aguilar said she was satisfied justice had been done this time, “punishing one of those from above.”

Now, while appealing this sentence before the Supreme Court, Conde is also facing accusations of having bought documents from the intelligence services which he later filtered through to the press – although no proof has been offered of this.

It also became known that his lawyer arranged an interview with Gonzalez – when he was still head of government – offering him documents in exchange for dropping the charges against Conde also requesting compensation for the expropriation of Banesto.

The sentence passed Thursday could lead the former banker to release other documents, which could supposedly incriminate high- ranking political leaders, dealing with cases of corruption and the “dirty war” against the Basque separatists.

Conde and his followers made no comment on the sentence, but will be appealing.