Spanish Prime Minister Rajoy beats back money scandal

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Spanish Prime Minister Mariano Rajoy joined with ruling People's Party officials to deny a payment scheme alleged to have yielded the prime minister $34,200 a year.

According to Reuters, a Spanish newspaper unearthed the transfer of payments from business donors to accounts for the prime minister and other People's Party leaders that were not properly disclosed or recorded. The handwritten accounts — characterized as unofficial bookkeeping records in Reuters — listed donations mostly from builders. The report is a substantial hit to Mr. Rajoy’s credibility at a time of growing fiscal crisis and high jobless rates, Reuters says.

Party leaders deny any wrongdoing.

“We have absolutely nothing to hide,” said one People's Party official at a news conference covered by Reuters.

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