Spain acts on scandal-hit council

Marbella mayor Marisol Yague denies any wrongdoing

The Spanish government has begun moves to dissolve the town council in the resort of Marbella amid a multi-million euro property fraud investigation.

Twenty-three people, including the mayor, officials and businessmen have been arrested and property worth millions of euros has been seized.

The plan to dissolve the council has been described as unprecedented in recent Spanish history.

The cabinet will make a final decision on the dissolution on Friday.

Serious issue

The Partido Popular opposition party has called for fresh local elections.

But the government says Marbella will be run by a specially appointed interim council until the next nationwide municipal elections, scheduled for May 2007.

I really think that some [houses] that have not been sold or have people living inside will be demolished Pedro Rodriguez, property developer

On Wednesday, the Senate's autonomous regions commission approved the government's plan.

Commission president Juan Jose Laborda said it was a serious decision, "something which affects local autonomy, one of the key elements of our constitutional and democratic order".

Marbella's mayor Marisol Yague has denied any wrongdoing but she and town planning boss Juan Antonio Roca were remanded into custody at a court hearing last week.

Police raided the town hall and other offices and seized property worth 2.4bn euros (£1.6bn), including farms, cash, art, thoroughbred horses and a helicopter.

Officers say they are investigating a number of crimes, including bribery, influence-peddling and embezzlement.

Housing concerns

Property developer Pedro Rodriguez, a former chairman of the Marbella tourist board who has spoken out against corruption in Marbella for many years, said the investigation had been widely expected.

He said the authorities had reclassified land so that "the difference in value for property from one day to another could be dozens of millions of euros".

He said between 20,000 and 30,000 homes had been built where they should not have been.

He hoped most of the innocent third parties who had invested life savings in homes would not be affected, but warned some houses would have to be demolished.

"I really think that some that have not been sold or have people living inside will be demolished," he said.

He said he thought Marbella's reputation had suffered tremendously over the past few years.