Spain's high court puts Repsol, Caixabank under formal investigation

Judge Manuel Garcia Castellon considers there is evidence that Caixabank and Repsol intercepted phone calls made by Luis del Rivero and people close to him, the court said in a statement emailed to media on Thursday. Senior officials from both companies have already been put under investigation on suspicion of possible bribery in the same case.

Spain's High Court placed oil company Repsol and Caixabank under formal investigation on Thursday in the latest stage of a decade-old inquiry into alleged industrial espionage.

The court order, released to the media, calls for an investigation into whether the two companies hired ex-police chief Jose Manuel Villarejo to spy on the then chairman of construction company Sacyr, Luis del Rivero, in 2011 and 2012. Judge Manuel Garcia Castellon considers there is evidence that Caixabank and Repsol intercepted phone calls made by Luis del Rivero and people close to him, the court said in a statement emailed to media on Thursday.

Senior officials from both companies have already been put under investigation on suspicion of possible bribery in the same case. Repsol said it had paid 185,000 euros ($219,336) to Villarejo's company, Cenyt, but its board had found no evidence of any legal infraction.

The company said it would demonstrate that it had not broken any law and that it could not have known that anyone from Cenyt was still employed as a public servant at the time in question. "Being investigated by the judicial system will not have any impact on the company, its governance or activity," Repsol said, adding that it reserved the right to take "whatever actions were necessary" to defend its reputation.

A Caixabank spokesperson said the judicial process was ongoing. "As always, we will fully collaborate with the courts," the spokesperson said. Thursday's court decision follows a request by the anti-corruption public prosecutor on Wednesday.

Garcia Castellon will investigate whether the hiring of Villarejo was aimed at derailing a pact between Sacyr and Mexican state oil firm Pemex, which intended to take over Repsol at the time, Thursday's court statement said. Repsol was then partly owned by Caixabank.

Neither Pemex nor Sacyr immediately responded to a request for comment. Under the Spanish judicial system, no formal charges can be brought until the first phase of investigation is over. Being under investigation does not necessarily mean there will be a formal indictment.

($1 = 0.8435 euros)

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