The mayor of Orihuela, Pepe Vegara, is set to face trial for alleged tax fraud, with hearings scheduled for January 22 and 24 at 9:30 a.m. in Criminal Court number 1. Witnesses have also been summoned to appear at the Plaza Santa Lucía courthouse.
However, there is a possibility of postponement, as Vegara’s defence lawyer is unable to attend due to health reasons. This was confirmed by one of the accused, who stated that they intended to request a delay.
The trial follows Vegara’s refusal to reach an agreement with the Public Prosecutor’s Office in March 2022. He has consistently maintained his innocence and declared he would only accept a full acquittal.
Alongside the mayor, four executives from Estación ITV and Orikoffee SL also face accusations of falsifying commercial documents and committing two crimes against the Public Treasury—one related to VAT and another to corporate tax for the 2005 fiscal year.
According to the prosecution, members of Estación ITV’s Board of Directors, including Vegara, allegedly reduced the company’s profits to minimize their VAT and corporate tax liabilities.
Investigations suggest that invoices issued by Orikoffee SL, which were used to create the appearance of reduced profits, were fraudulent. Estación ITV reportedly paid these invoices with promissory notes, some of which were endorsed to Autos Ramón SA, a company connected to ITV partners through family ties.
The Tax Agency estimates that 760,539.12 euros in corporate tax and 157,396.80 euros in VAT were allegedly evaded.
The fraudulent scheme is believed to have involved a sales contract between Estación ITV and Orikoffee SL, under which 100,000 advertising phone diaries were purchased. These diaries, manufactured at a cost of 1.31 euros per unit, were invoiced at 17 euros each, an inflated price that allegedly reflected fraudulent intent.
The Public Prosecutor’s Office considers Vegara a key figure in the alleged crimes. He is accused of being a “necessary collaborator” in document falsification and a “material co-author” in the tax-related offenses.
The prosecution is seeking a total of seven years in prison for the defendants and fines amounting to 5,192,821 euros. Additionally, the defendants face disqualification from holding public office and accessing tax or Social Security benefits.
This legal battle began during Vegara’s candidacy for mayor in April 2023. On the day of his official campaign launch, Vegara denied any trial had been opened against him, claiming the case was long closed. However, he later retracted this statement when evidence confirmed the case’s ongoing status.
The legal proceedings stem from a complaint filed in 2011. They were originally archived in 2015 but reopened shortly before the statute of limitations expired.
During the campaign, opposition parties, including PSOE, Cs, and Cambiemos, used the case to draw connections between the Orihuela branch of the Popular Party (PP) and corruption. Vegara countered by emphasising that the accusations pertain to his company rather than his public administration. He also attributed the situation to an employee’s malpractice, which the company chose not to report.
Despite the controversy, the PP leadership, including Carlos Mazón, president of the Generalitat, supported Vegara. Mazón downplayed the accusations, labelling them an “administrative matter.” This stance did not hinder the PP’s electoral performance. Vegara, in partnership with Vox, secured one additional councillor compared to the previous term, although the PP fell short of regaining its 2011 absolute majority.
If the court acquits Vegara and his co-defendants, his political standing could be bolstered. However, a conviction would likely force a re-evaluation of his political future. Precedent exists for PP officials stepping down in similar circumstances, as in the case of Torrevieja councillor Carmen Gómez, who resigned in 2022 after her oral trial began.
For now, Vegara’s fate hinges on the upcoming trial. By rejecting a plea deal, he avoided immediate conviction but left his political and personal future in the hands of the court.
A verdict of guilt could trigger significant changes within Orihuela’s political landscape, while an acquittal would reinforce Vegara’s position as mayor.
