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Another corruption scandal rocks Spain's ruling party

spanishpmSpain’s ruling Popular Party has hit the headlines again for all the wrong reasons.

The leader of its Madrid sector has resigned after police raided the PP’s office last Thursday as part of yet another corruption investigation concerning alleged illegal financing, bribery and money laundering.

A Spanish judge had also ordered the police to raid the office of construction firm OHL in relation to the same case.

The raids are the latest in a series and are believed to concern the alleged payment of illegal commissions for the award of public works contracts worth a reported €250 million.

Esperanza Aguirre said she was not linked personally to the case but that she had assumed responsibility.

"Corruption is completely killing the party," Aguirre told a news conference at the headquarters. "The gravity of these reports, even though they are not yet validated, leads me to present my resignation."

The fresh scandal comes at a devilish time for Prime Minister Rajoy (pictured). Spain has been without an effective government for the last two months as no coalition agreement has been reached among the four leading parties.

The conservative PP failed to find a partner which would provide a parliamentary majority.

The task was then given to the runner-up, the socialist party, which also has not managed a breakthrough.

If no government is formed, new elections may be called.

Corruption is second only to unemployment as the main concerns for Spaniards, according to opinion polls.

Last month, police arrested 24 people, many connected to the PP, in the Valencia region over allegations of illegal commissions in exchange for public work contracts.

In October 2014, a high court judge ordered the detention of 51 people, including mayors and businessmen, on suspicion of bid rigging.

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