Overview of a Major Urban Project Scrutiny in Las Palmas
In Las Palmas de Gran Canaria, the Investigating Court No. 2 is examining an alleged organized network accused by the Public Prosecutor of favoring certain businessmen whose financial interests hinge largely on decisions by municipal bodies controlled or influenced by current and former officials of the Las Palmas Urban Management Company, Geursa. Prosecutors believe the accused acted with urban and administrative decisions that went against the general public interest. At present, five individuals are under investigation, including the former Geursa chief, Jose Maria Setien.
Prosecutors from the Environment and Urbanism and Organized Crime divisions of the Las Palmas Public Prosecutor’s Office flagged signs of a fraudulent awarding of work orders, contract allocations, and large-scale project implementations within the city, such as the MetroGuagua initiative.
Judicial authorities have charged the suspects with potential crimes including administrative and urban prevarication, influence peddling, negotiations and activities prohibited for public officials, embezzlement of public funds, falsification of public documents, breach of confidentiality, and the use of privileged information.
The Guardia Civil Conducts Searches at Geursa and at the Parks and Gardens Department
As part of the Valka operation, the Guardia Civil executed multiple searches in Gran Canaria and Lanzarote. The search efforts targeted the Geursa offices and the Parks and Gardens Department of the Las Palmas City Council, in relation to various offenses linked to public corruption and urban planning.
The operation is being carried out by a joint Guardia Civil task force comprising the Special Rapid Action Team, the Central Environmental Unit, the Technological Crimes Group, and the EDITE unit of the Las Palmas Judicial Police. The operation is led by the presiding magistrate, Rafael Passaro Cabrera.
The investigation remains under a protective seal and is ongoing. The Canary Islands Higher Court released a statement confirming there have been no arrests to date.
Geursa Functions and Activities
Geursa operates with a multidisciplinary team including architects, surveyors, engineers, and IT specialists who carry out the assignments requested by the City Hall of Las Palmas de Gran Canaria. Since 2001, the organization has separated from the municipal car parking governance and registered as a private company to execute local projects.
Among the major initiatives promoted by Geursa, whose capital is fully held by the public administration, is the MetroGuagua project. This ambitious plan aims to transform the city’s public transport system. Construction began with the laying of the first stone seven years ago during the tenure of Augusto Hidalgo. Since then, progress has faced multiple setbacks, including a health crisis that slowed timelines.
Ongoing Secrecy and Updates on the Investigation
Delays occurred on several fronts as certain works faced interruptions. In Blas Cabrera Felipe, for instance, one contractor halted work after reaching 30 percent completion. In Mesa y López, projects faced delays due to management issues, resulting in a contract termination in January 2020. The awarded contractor for one major project led to a one-and-a-half-year pause on the Vega de San José works. Geursa is not the only public company under judicial scrutiny, as preprocedural inquiries were opened by Anticorruption Prosecutors in June following a report from the Popular Party concerning the Society for the Promotion’s governance.
The ongoing investigation remains under a protective order, with authorities continuing to gather evidence and assess potential irregularities in urban management and public contracting. No further details about pending actions have been disclosed publicly at this time.