Spanish Prime Minister Pedro Sanchez stated on Thursday that he had no knowledge whatsoever regarding the corruption case that led to the resignation of a high-ranking official in his Socialist Party, while also dismissing demands for his own resignation over the matter.

The case further intensifies the growing legal and political challenges facing Sanchez, who ranks among Europe's longest-serving socialist leaders, as his inner circle grapples with multiple ongoing investigations.

Santos Cerdan, who serves as the party's organization secretary and holds its third-highest ranking position, faces suspicions of involvement as an accomplice in the alleged irregular allocation of public contracts, as detailed in a recently released judicial report.

Cerdan, who also serves as a member of parliament, announced his resignation from all his political roles in order to protect both the government and the party, while maintaining in an official statement that he had never engaged in any unlawful activities.

Shortly after Cerdan's resignation, Sanchez addressed reporters at a news conference, insisting he had been completely unaware of the corruption allegations against his longtime political ally until reading about them in news reports earlier that Thursday. "We never should have trusted him," PM Sanchez said, adding that he requested that Cerdan step down. 

Evidence damns Cerdan

A judicial report cited by investigators indicated that police findings "contain substantial evidence" pointing to potential collusion between Cerdan, former Transport Minister Jose Luis Abalos, and Abalos's ex-advisor Koldo Garcia Izaguirre, allegedly operating a scheme that involved financial kickbacks in exchange for favorable treatment in public contracts.

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Cerdan found his position increasingly unsustainable after media outlets published leaked audio excerpts on Thursday that allegedly contained compromising discussions between him, Abalos, and Garcia regarding the corruption scheme. The leaked recordings reportedly contain conversations where the three men can be heard negotiating undisclosed kickback arrangements with companies seeking government contracts.

Authorities have summoned Cerdan to appear voluntarily before the Supreme Court on June 25 to provide testimony regarding the allegations.

Opposition calls on Sanchez to resign

PP leader Alberto Nunez Feijoo addressed reporters, stating, "If anyone had doubts that there was a mafia-like network behind the ruling party and the government, I suppose those doubts have now been dispelled," while simultaneously demanding Sanchez's resignation over the scandal.

"This is unacceptable in a European Union country. A European prime minister wouldn't last 10 minutes after the revelations we've seen in recent weeks," the opposition leader added.

Sanchez ruled out calling for early elections, claiming that the corruption case affects his party, but not the Spanish government.

Tens of thousands gathered in Madrid on Sunday for a protest organized by the PP, demonstrating against Sanchez's administration.

Abalos, who held the position of transport minister between 2018 and 2021 and was considered a central figure in Sanchez's government, stands accused of accepting illicit payments tied to business agreements while facing allegations including corruption, influence peddling, and misappropriation of public funds.

After being removed from Sanchez's cabinet in 2021 and subsequently expelled from the Socialist Party earlier this year, Abalos continues to serve in parliament as an independent lawmaker despite the ongoing corruption allegations against him.

Sanchez's wife and brother face graft probes, while his appointed prosecutor risks trial over allegedly leaking files about a Madrid conservative leader's partner.

The Spanish prime minister has characterized the investigations targeting his close associates as nothing more than a politically motivated "smear campaign" orchestrated by right-wing opponents seeking to destabilize his administration.