Spain files new charges in Inassa probe

A Spanish judge has filed a charge against six former councilors of Madrid city government over alleged irregularities in the purchase of Colombian water holding Inassa by the city's main water utility Canal de Isabel II in 2001.

Judge Manuel García Castellón demanded the former councilors face trial in September in what is known as the Lezo probe. They join former mayor Alberto Ruiz Gallardón and other individuals that were part of the city council at the time the Inassa deal was approved, state news outlet RTVE reported citing court documents.

Among the individuals accused of prevarication and embezzlement in the 2001 operation are the former public works councilor Luis Cortez and former economy councilor Luis Blazquez.

In June Gallardón, who also served as Spain's justice minister, declared before judge García that the deal was legal and denied having received any benefits from it.

Prosecutors, however, allege that Canal de Isabel II vastly overpaid for Inassa to the benefit of politicians in Spain and Colombia, and that former executives even mounted a parallel scheme, "filled with irregularities," to the one that was publicly approved.

Aside from the Inassa deal, Operation Lezo is investigating Canal de Isabel II's alleged payments to politicians across Latin America and overpayment of assets. Panama, Colombia, and Spain have set up a joint investigation team to shed a light on the utility's business in the region.