The raid

Officers from Spain's Civil Guard entered the federal headquarters of the ruling Spanish Socialist Workers' Party (PSOE) in Madrid on Wednesday morning. The court-ordered operation, confirmed by the Civil Guard, aimed to seize material related to corruption allegations against a former party member involved in a state-run company. The search is part of a National Court investigation into suspected bribery, illegal influence peddling, and an alleged scheme to award public contracts in exchange for kickbacks.

A PSOE spokeswoman, Montse Minguez, told Catalunya Radio that the party was calm and cooperating fully with authorities, emphasizing that all requested information would be handed over to investigators.

Wider investigation

The operation, authorized by National Court Judge Santiago Pedraz, extended beyond the party headquarters. Agents also searched the Madrid homes of former senior Socialist figures, including former PSOE organizational secretary Santos Cerdán and former party leader Gaspar Sarrias, as well as businessman Javier Pérez Dolset. Cerdán had already resigned from his party post in June of the previous year after the scandal erupted.

The probe, referred to as the "Sepi case" by Spanish media, centers on payments made to former PSOE member and public official Leire Díez. It also encompasses an investigation into Vicente Fernández, the former chairman of the state industrial holding company SEPI, and Servinabar owner Antxón Alonso, considered an associate of Santos Cerdán, over allegations of accepting bribes during the allocation of public contracts.

Zapatero investigation

Adding to the pressure, a separate court revealed last week that it is investigating former Prime Minister José Luis Rodríguez Zapatero, a close ally of Sánchez. The case examines whether Zapatero used his influence to secure a €53 million (roughly $61.5 million) state bailout for the airline Plus Ultra in 2021, during the COVID-19 pandemic, and whether his family benefited from it.

The investigating judge alleges Zapatero may have been part of a network of shell companies and behind-the-scenes lobbyists aiming to push favorable decisions through the Socialist government's channels. Zapatero, who served as prime minister from 2004 to 2011, denies any wrongdoing or having received payments from Plus Ultra.

Political fallout

Sánchez, who was in the Vatican for a meeting with Pope Leo XIV on Wednesday, told reporters at a Rome news conference that he saw no reason to withdraw his support for Zapatero. "I think there is no sufficient reason, there is no reason to change that position," he said.

The opposition has seized on the scandals. Alberto Núñez Feijóo, head of the conservative People's Party (PP), said Sánchez's government "stinks" of corruption and renewed his call for early elections. Over the weekend, tens of thousands of protesters gathered in Madrid demanding Sánchez's resignation. State broadcaster RTVE described the police operation as a "political earthquake."

Mounting pressure

The raid on the PSOE headquarters marks a dramatic escalation in a series of graft allegations buffeting Sánchez's inner circle, including investigations involving his wife and brother. The scandals have placed the minority coalition government under severe strain, with opposition parties intensifying their demands for Sánchez to step down or call snap elections.