Ex-CEO of Plus Ultra Says Firm Hired 'Zapatero Group' to Push for Bailout
The former chief executive of Spanish airline Plus Ultra has testified before a judge, claiming that the company hired a group of people connected to former Prime Minister José Luis RodrÃguez Zapatero in order to pressure SEPI, the state holding company, into approving a rescue package for the struggling airline.
According to statements reported by laSexta, the ex-CEO said the so-called 'Zapatero group' was contracted specifically to influence SEPI's decision-making process regarding the bailout.
Plus Ultra, a small airline with links to Venezuela, received a substantial loan from SEPI's Solvency Support Fund during the Covid-19 pandemic, a decision that has drawn significant political and media scrutiny in Spain ever since.
The ex-CEO reportedly told the judge that the company had agreed to pay 1% of the total rescue amount to the Zapatero group as compensation for their assistance in securing the approval.
Perhaps more strikingly, the former executive also stated that the group had informed Plus Ultra a week in advance that the bailout would be approved, raising questions about whether they had privileged knowledge of SEPI's internal deliberations before any public announcement was made.
SEPI, which manages state holdings and is responsible for distributing public funds to companies affected by the pandemic, has previously denied any irregularities in the process that led to Plus Ultra's bailout.
The testimony forms part of a broader judicial investigation into how the rescue package was granted, examining whether improper influence or lobbying played a role in the SEPI board's final decision.
Zapatero, who served as Spain's Prime Minister between 2004 and 2011, has not been formally implicated by name in the case, though the reference to a 'Zapatero group' has fuelled political speculation about his associates' involvement in the affair.
The case has reignited debate in Spain over transparency in the allocation of public rescue funds during the pandemic, particularly concerning smaller companies that received support despite facing pre-existing financial difficulties.
The judge overseeing the case is expected to continue gathering testimony from other individuals connected to the bailout process as the investigation proceeds.
No formal charges have yet been announced in relation to the allegations made by the former CEO.
Vocabulary7 words
- pressure
- to strongly push someone toward a decision
- contracted
- hired officially for a job
- bailout
- money given to save a company in trouble
- testimony
- what someone says in court
- lobbying
- trying to influence a decision by government
- scrutiny
- close and careful checking
- irregularities
- actions that are not normal or not correct
Quiz
Answer key
1. That a group linked to Zapatero was hired to pressure SEPI over the bailout 2. 1% 3. True
Discussion questions
- Why might a company hire outside groups to influence a government funding decision?
- What risks does this kind of alleged lobbying pose to public trust in government institutions?
- Should there be stricter rules on how public bailout funds are approved and monitored?
- What further evidence do you think the judge should seek in this investigation?