Spanish Judges Suspend Finding That Had Made Princess a Suspect

Judges at a regional court in Spain’s Balearic Islands suspended a magistrate’s ruling that had made Princess Cristina, the daughter of King Juan Carlos, an official suspect in an investigation of corruption allegations centered on her husband’s business activities.

By a vote of 2 to 1, the panel of judges at the court in Palma de Mallorca upheld an appeal by public prosecutors to suspend the ruling against the princess and cancel her planned testimony before the court until the investigating magistrate, Jose Castro, provides more evidence, the court said in an e- mailed statement today.

The prosecutors’ April 3 appeal was later joined by the lawyers defending both the princess and her husband.

Cristina’s husband, Inaki Urdangarin, is a suspect in a fraud, embezzlement and money-laundering probe that focuses on the non-profit Noos Institute, which was founded to make Spanish companies more competitive. The institute, where Urdangarin was chairman, won 5.8 million euros ($7.45 million) of contracts from the regional governments of Valencia and the Balearic Islands between 2004 and 2007 without participating in a competitive tender, ABC newspaper reported last year.

To contact the reporters on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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