Spanish opposition charges government over Endesa

27 Apr, 2007

Spain's opposition party has lodged a legal complaint with the anti-corruption office over the way the Socialist government dealt with a take-over battle for utility Endesa it said on Thursday.
The government made no secret of wanting to keep Endesa Spanish in an 18-month take-over battle for the country's largest utility and was rapped by the European Union for slapping conditions on a bid from Germany's E.ON.
There were more cries of foul play when Italian utility Enel and Spanish construction-to-windpower firm Acciona announced a counterbid plan in the last days of E.ON's offer and days after the prime ministers of Spain and Italy met.
The conservative Popular Party said the government had put pressure on people to "benefit certain companies" and "clearing the way for a counterbidder to come in".
"We believe the facts could constitute a crime of breach of official duty, bribery, crimes of negotiations and activities prohibited for public officials and crimes of influence trafficking," said PP economic spokesman Arias Canete. Socialist party spokesman Julio Vilarrubia denied the charges.
"The complaint they've lodged is absolutely unfounded and unjust. We respect and we will respect the anti-corruption office but this is nothing more than sound and fury from the PP," he said.
The PP pointed the finger particularly at Miguel Sebastian, Prime Minister Jose Luis Rodriguez Zapatero's former economic adviser who is now running for mayor of Madrid, and Sebastian's successor in the government David Taguas.
In March, the PP also lodged a legal complaint about the 11th-hour arrival of Enel in the battle for Endesa, which E.ON eventually lost, agreeing to drop legal action and its bid in exchange for some of Endesa's assets.
Earlier this week, the head of Spain's stock market regulator CNMV resigned over the Endesa case, saying the board should have fined Enel and Acciona for charging into battle so late. Acciona has said it acted legally.

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