The Spanish Government Still Provides Protection For Former King Juan Carlos I

On Monday, Spain’s interior minister, Marlaska, confirmed that the Spanish government was still providing protection for former King Juan Carlos I, who fled the country last week over allegations of corruption and money laundering. He is believed to have settled in a luxury hotel in Abu Dhabi. The cost per night is over €10,000.

Marlaska: “It is reasonable and timely that the Minister of the Interior does not give any information about it [where the King is], but what no one can forget is that we are talking about the person who was the head of State in Spain. His security obviously concerns the Spanish state.”

PM Pedro Sánchez affirmed that he didn’t know the whereabouts of the monarch, but the minister of the interior’s statements suggests his administration is closely monitoring the former king’s steps.

Last week, the state-owned public broadcaster RTVE revealed that the government had been negotiating the self-imposed exile of the monarch with the Royal House over a period of weeks, meaning it had helped the monarch to flee the country.

Investigations

Juan Carlos is under investigation in Spain for his role in a deal in which a Spanish consortium landed a €6.7 billion contract to build a high-speed rail line between the Saudi cities of Medina and Mecca.

Swiss prosecutors are also investigating a $100 million bank account held by the monarch in the country. According to the investigations, Juan Carlos allegedly received a “donation” of $100 million from the king of Saudi Arabia that he put in an offshore account in 2008. A few years later, he allegedly “gifted” 65 of those millions from that account to his ex-lover Corinna Larsen.

It is still too early to know whether Swiss and Spanish justice will convict the former king, Juan Carlos I, of corruption and money laundering. However, this case has already shown that the Spanish government has helped someone under investigation over corruption and money laundering to flee the country and is still providing him protection. There is, then, little doubt the Spanish administration is trying to shore up the 78 regime.

Newspaper El Confidencial Reveals the Existence of a Secret Document that Implicates Spain King’s Emeritus Juan Carlos I with the Management of an Instrumental Company to Hide €64.8 Million from Saudi Arabia

On Tuesday, newspaper El Confidencial announced that it had access to a private document signed by Spain’s King’s emeritus, Juan Carlos I, which implicates him in the management of an “offshore” structure used to “hide” €64.8 million euros from Saudi Arabia. In the three documents, Juan Carlos I appears as the first beneficiary of the funds of the Panamanian society, the Lucum Foundation. His son and current King appears as second beneficiary.

The documents show that the Lucum Foundation was created in Panama on July 31, 2008, by a Swiss financial manager, Arturo Fasana, and the lawyer Dante Canonica. Fasana became the president, and Canonica secretary.

The Lucum Foundation was created to act as a front for an account in Switzerland at the Mirabaud bank that received “a donation of €64.8 million made by the King of Saudi Arabia to the King of Spain.”

On March 10, 2011, the Swiss lawyer and Arturo Fasana established the internal regulations by which it would be governed. The new statutes nullified “any previous regime” of the company and appointed Juan Carlos I, King of Spain (Juan Carlos Alfonso Víctor María de Borbón y Borbón) as true owner of the foundation, born on January 5, 1938 in Rome, Italy, meaning that the €64.8 million donation by Saudi Arabia was now property of the Spanish monarch, according to the secret documents. The monarch enjoyed full rights to “freely dispose of the assets of the foundation during his lifetime without any limitation.”

The documents also reveal that if Juan Carlos I died, the money would be under the control of the “second beneficiary,” the current King Felipe VI, “Prince Felipe of Bourbon and Greece, Prince of Asturias, born on January 30, 1968 in Madrid.”

“Following the death of the first beneficiary, the second beneficiary will have the right to dispose of all the assets of the foundation, without any limitation,” the document states.

The conditions for accessing the money
There were some conditions required for Spain’s King Felipe V to access the money from the foundation. According to the documents, the current head of state had to comply the stipulations in his father’s will that the funds that remained after his death be used to “guarantee the maintenance of all members of the Spanish royal family, in particular, from SM Queen Sofía of Spain, to S.A.R. the Infanta Elena de Borbón y Grecia, Duchess of Lugo, and her children born or to be born, of S.A.R. the Infanta Cristina de Borbón y Grecia, Duchess of Palma of Mallorca, and her children born or to be born.”

In other words, in practice, the entire royal family and even possible new members, such as future children of the infantas, appeared as beneficiaries of the account in Switzerland.

Dissolution in 2012
The foundation was dissolved in September 2012. By then, the King Emeritus had only spent a small part of the €64.8 million ($100 million at the time) that he had received from Saudi Arabia as an alleged donation. The monarch transferred the remaining money to his then lover, Corinna Larsen, and closed the Panamanian structure.