Ex-IMF Chief Rato Faces New Prison Sentence For Corruption

Former International Monetary Fund (IMF) Chief Rodrigo Rato has been sentenced to nearly five years in a prison by a Madrid-court for corruption related offences. The 75 year old, who previously served as IMF Chairman from 2004 to 2007 and as deputy prime minister in Spain’s People Party (PP Government), has denied any wrongdoing and plans to appeal the decision.

Key Highlights Of The Case

Sentencing

• Rato was sentenced to four years, nine months, and one day in prison.
• Convicted on three counts, including tax offences, corruption outside the public sector, and money laundering.
• Ordered to pay fines exceeding €2 million and additional penalties of €568,413 to tax authorities.

Appeal and Current Status

• Rato maintains the ruling is “unfair” and will appeal the decision.
• Pending the Supreme Court’s final ruling, Rato will not serve time immediately.

Previous Convictions

• Previously served two years in prison (2017-2019) for embezzlement, related to the misuse of Bankia credit cards.
• Acquitted in 2012 of fraud charges related to Bankia’s stock market listing.

Current Case Background

• Investigated for nine years before the trial concluded.
• Prosecution initially sought a 63-year sentence for 11 charges.
• Evidence included details from a 2015 raid on his home, though Rato’s lawyer argued the raid violated his rights.

Context

• Rato chaired Spanish lender Bankia from 2010 to 2012, a period marked by financial mismanagement.
• His earlier tenure as deputy prime minister saw him rise in Spain’s conservative political landscape.

Impact Of the Decision

• The ruling reflects Spain’s stance on tackling corruption and maintaining accountability in high-profile cases.