Ex-IMF head Rato detained in tax investigation

Spain’s state prosecutor requested the search of Rato’s Madrid home

Rodrigo Rato (left), former People’s Party minister and former managing director of the International Monetary Fund, is lead by police as they leave his residence after an inspection in Madrid. Photograph: Sergio Perez/Reuters

Former International Monetary Fund chief and Spanish politican Rodrigo Rato has been detained on fraud and money laundering charges, Spanish media have reported.

Judges ordered a search of his Madrid home of Mr Rato as part of an investigation into tax paid on his personal wealth, a court statement said on Thursday.

Spain’s state prosecutor had requested the search of Rato’s home as part of an investigation involving the former IMF managing director and “other people”, according to the brief court statement in which further details were not provided.

Two official sources separately confirmed that a search at his home had focused on details of Rato’s personal wealth.

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Rato’s lawyers, Oliva-Ayala, confirmed they represent him but could not immediately comment, while several calls and an email sent seeking comment to someone who has acted on his behalf in the past were not returned.

Rato is a former Spanish economy minister who was long a leading light of Prime Minister Mariano Rajoy’s centre-right Popular Party (PP) but is now implicated in two separate judicial cases.

Magistrates are investigating the alleged widespread misuse of company credit cards for personal expenses during Rato’s tenure as chairman of bailed-out Bankia.

Rato is also one of several former managers under investigation for fraud as courts separately decide whether Bankia’s 2011 stock market flotation was flawed. He denies wrongdoing.

Thursday’s news comes ahead of regional and local elections next month and a general election towards year-end in which the PP is expected to suffer heavy losses because of the implication of big party names in graft probes in recent years.

Opinion polls consistently show Spanish voters are concerned about corruption, and discontent with the political class has fostered the rise of two new parties, Podemos and Ciudadanos, which are predicted to win significant voter support this year.

Reuters and agencies