Corruption has once again been front-page news in Spain this summer. The scandals involving senior figures such as Koldo García, José Luis Ábalos and Santos Cerdán have sparked fierce debate about the state of public procurement, the role of political appointees, and whether Spain needs a new Public Integrity Agency.
Will the reforms stick? How will these scandals shape the environment in which Spain operates? And what lessons can businesses and compliance teams take from the turmoil?
Procurement is Spain’s recurring weak spot
The Koldo case remains the most prominent example of how public procurement has become a recurring flashpoint for corruption in Spain, with allegations of undue influence in pandemic-era mask contracts. The more recent Cerdán scandal has only heightened demands for accountability, pushing Prime Minister Pedro Sánchez to announce a new package of anti-corruption reforms in July 2025, including plans for a Public Integrity Agency.
Public procurement is central to the debate because of its scale. According to the OECD, it represents around 14% of Spain’s GDP—over €150 billion annually. Even isolated cases can therefore cause reputational damage, deter investment, and undermine trust in institutions.
What reforms are on the table?
In July, Sánchez unveiled a 15-point State Anti-Corruption Plan that promises to reshape oversight and enforcement. Key measures include:
- Creation of a Public Integrity Agency: an independent body tasked with preventive monitoring, equipped with technology, and insulated (in theory) from political appointees.
- AI-driven monitoring of procurement contracts, using big data to flag irregularities on Spain’s procurement platform.
- Tougher penalties: higher fines for companies convicted of corruption, longer statutes of limitation, and exclusion from public tenders.
- Mandatory compliance systems for companies bidding on public contracts, including internal controls and reporting frameworks.
- Political finance reforms, including stricter external audits of parties and foundations, and tighter donation disclosure rules.
- Whistleblower protections, with stronger confidentiality and legal support.
How deep do the reforms actually go?
While headline-grabbing, several of these reforms build on systems already in place. AI and irregularity detection are already being piloted, and Spain’s criminal courts have successfully prosecuted major corruption cases in recent years. Critics argue that the real gap lies not in tools, but in political will and independence.
The Council of Europe’s GRECO body warned in August 2025 that Spain has only partially implemented many of its recommendations, with several still outstanding, especially around central government accountability and political influence in appointments. Without bipartisan support and professionalised procurement staff insulated from political interference, a new integrity agency could risk becoming another bureaucratic layer rather than a genuine prevention tool.
Who will be affected by the reforms?
For companies operating in Spain, the new reform package has immediate and long-term implications:
- Procurement compliance will tighten: bidders may need certified compliance frameworks, internal reporting systems, and clear audit trails.
- Higher penalties and exclusion risk: companies implicated in corruption face not just fines but blacklisting from lucrative public contracts.
- Greater transparency: political funding reforms, procurement data monitoring, and AI oversight mean irregularities will be easier to detect.
- Whistleblower exposure: enhanced protections raise expectations for anonymous, accessible reporting channels within companies.
- Perception risk: Transparency International ranked Spain 46th globally in its 2024 Corruption Perceptions Index. Even without systemic corruption, reputational concerns alone can erode trust, deter investors, and trigger due diligence obligations.
What should businesses in Spain do now to prepare?
Spain’s corruption scandals may not prove that corruption is systemic, but they have exposed structural weaknesses in procurement and political oversight. The July reform package shows that change is coming, though whether it will be fully implemented, and whether it will genuinely prevent rather than merely punish, remains to be seen.
Either way, though, the message for businesses is clear: don’t wait for the new Public Integrity Agency to arrive. Strengthen procurement compliance, whistleblowing systems, and supplier due diligence now. In a market where perception itself carries risk, proactive integrity measures are the best defence.
