Corruption scandal widens around Spanish royal family

Dec 7, 2011, 11:01 GMT

Madrid - An unprecedented corruption scandal threatening to engulf the Spanish royal family widened Wednesday, when a respected newspaper reported that the husband of Princess Cristina was to be made an official suspect.

Inaki Urdangarin, 43, will be indicted for participating in illegal business deals within the next two months, the daily El Pais quoted judicial sources as saying.

The 46-year old princess will not be named as a suspect, but the case could cause her to renounce her dynastic rights as the seventh in line to the throne, her share of the royal budget and her role in public life, according to the daily.

Cristina is the middle one of King Juan Carlos' and Queen Sofia's three children.

In 1997, she married Urdangarin, a former professional handball player, who took the title of Duke of Palma de Majorca. The couple has four children.

Prosecutors are investigating the non-profit Noos Institute, which the duke headed between 2004 and 2006.

Urdangarin and his business partner Diego Torres used the institute and the duke's prestige to garner potentially lucrative business contacts, by organizing sports and tourism events in the Balearic Islands and the eastern region of Valencia, investigators say.

They overcharged for events, and even charged for services which were never carried out, channelling more than 1 million euros (1.34 million dollars) in public and private funds into their own companies, according to the accusations against them.

Torres has already been named as an official suspect.

Cristina was involved with the Noos Institute and with Urdangarin's Aizoon real estate company, but investigators say she was not aware of their financial dealings.

Urdangarin has vowed to defend his 'honour and innocence.' The royal palace has not officially commented on the case, simply saying that it respects legal decisions.