Illegal subsidy scam uncovered in Galicia

Illegal subsidy scam uncovered in Galicia
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By m.p. - May 26, 2011 - 5:53 PM
The director and deputy of a public agency are amongst the 15 accused

Jorge Derribo on Tuesday - EFE

Estela San José, head of Instruction Court No. 3 in Lugo, was continuing questioning on Thursday of some of the 15 suspects she ordered arrested in a new corruption case which broke on Tuesday into a network which allegedly obtained fraudulent subsidies from the regional government.

Two of the people taken into custody are the director and deputy director of the public body IGAPE, the Galician Institute for Economic Promotion - Galicia’s regional development agency -which awarded the subsidies.

Another suspect is the businessman Jorge Dorribo, whose companies are reported to have received 4 million € worth of subsidies from Igape over the past six months. He owns the Nupel pharmaceutical laboratories and the Agencia Tributaria Tax Authority believes the IGAPE bosses advised Nupel managers on the alleged scam to obtain the subsidies.

The Xunta de Galicia has announced an internal investigation of IGAPE and is understood from El Mundo to have applied to the judge on Wednesday to place its own private accusation in the case.

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