The agreement materialized at the time of the 2020 mansion, brought by COVID-19, with which the Government of Navarra intended to ensure that the companies of the territory had anti-infectivity material, especially masks.

At that time it was not easy to obtain this material and it was mainly brought from China, as it was not produced in Western companies. Governments channelled all kinds of operations to bring economy and life to “new normality” as soon as possible.

In this complex context, Sodena advanced two million euros to CEN, through which Albyn Medical intermediated to bring material from China with a 3.6% commission, which allowed him to obtain 70,000 euros. The scheme was as follows: Sodena advances money, Albyn brings material and CEN redirects it to companies, according to their requests.

What happened along the way? The initial high prices were decreasing and companies were supplied on the market at prices lower than those offered by CEN. In order to deal with speculation, the Spanish Government also placed limits on mask prices. The main conclusion is that Sodena, which grants development loans to companies, has lost EUR 1.24 million in this operation and that 1.7 million masks paid with public money are unsold in two shells (EUR 2.2 million were purchased).

Breach of the law

According to the report signed on 27 July, the Directorate of Intervention of the Foral Government monitors public management through private companies, which found irregularities in the operation. On the one hand, the loan of money granted to CEN breaches the Foral Public Finance Act, since it was made at a 0% interest, which does not respect the interest rules. The inspection also indicates that the operation was carried out without guarantees.

Furthermore, it determines that at that time the Government of Navarra did not fulfil the conditions imposed for this type of operation, among which, due to its exceptionality, it needed express authorization from the Government of Navarra.

The House of Auditors of Navarra also supervised the operations carried out by the government at that time, without making any mention of it, and has now announced that it will carry out a special audit in this case.

Significant shadows

Javier Ramírez, spokesman for the Government of Navarra, has confined himself to saying that the issue demonstrates the effectiveness of government interventions. However, it is obvious that I would have to say something else, because the operation has shadows from the point of view of government action.

On the one hand, the financial controller’s report points out that the operation did not comply with the rules established at that time by the government itself for this type of work, including governmental non-authorization. At that time, however, he had at least the authorization of Manu Ayerdi, Minister for Industry and Economic Development, who explained in the Parliament of Navarra on 7 May the characteristics of the agreement with CEN. The agreement was also approved by Elma Saiz, who runs the Public Enterprises Corporation of Navarra.

The interventors claim that the loan had no guarantee, but, according to Pilar Irigoien, now dismissed, the rules laid down by the Foral Government for these operations did not oblige to do so, and also ensured an operation guaranteed by the solvency granted to the association of entrepreneurs. In any case, and above the measures of then government, the control study also says that the requirements established for this purpose by the Foral Law were not met.

Pending the inspections to be carried out, the EUR 1.2 million hole left by the operation makes it quite clear that Sodena granted the loan to CEN without any specific guarantees, and that the business partnership is not as solvent or reliable as it was believed, or that the agreement was not properly linked. The shadows are plentiful and Sodena, CEN and the government will have to better explain what happened.