Pedro Sánchez's right-hand man held in jail on corruption charges
Santos Cerdán, the former No 3 of the ruling Socialist Party, was detained as part of a wider investigation that threatens to topple the government.
On Monday the supreme court judge Leopoldo Puente ruled that Cerdán, 56, should be held without bail on suspicion of bribery, criminal conspiracy and influence peddling. He denies all the charges.
The charges stem from alleged kickbacks on €500 million worth of public works contracts also linked to José Luis Ábalos, 65, Sánchez's previous right-hand man and the former minister of transport.
The judge said there was 'overwhelming evidence' of Cerdán's involvement in the network, which prosecutors say could have siphoned off more than €5 million in illicit gains from improperly awarded state contracts.
He said pre-trial detention was necessary because Cerdán might destroy or tamper with evidence if left at liberty.
The scandal's reach appeared to extend beyond Cerdán. The judge noted that 'more individuals, physical or legal' may have profited from the alleged scheme, naming Ábalos and his former aide Koldo García as possible beneficiaries. All deny wrongdoing.
Cerdán characterised the case as politically motivated, claiming he was being targeted for his role in brokering agreements with Basque and Catalan separatist parties that secured Sánchez's re-election.
Cerdán was the first of the high-profile suspects under investigation in the supreme court to be remanded in custody. His arrest marked a dramatic escalation in a case that had already cast doubt on the survival of the Socialist-led coalition government.
Responding to the ruling, Sánchez said: 'The party has done what it had to do. Now it is time for the justice system to determine responsibility.'
The scandal is likely to increase pressure on Sánchez, 53, to step down and call elections.
• Pedro Sánchez's row with Trump could offer respite from scandal
Miriam González, the wife of the former British deputy prime minister Sir Nick Clegg, has added to the Socialist leader's woes by publicly criticising him for failing to act after corruption allegations were made against his wife, Begoña Gómez.
González, 57, called his lack of action to improve governance standards in the year since the allegations against Gomez surfaced 'a democratic disgrace'. She also said the prime minister's wife was likely to escape scrutiny in a case involving an airline due to weak legislation.
In a sharply worded article published last week by El Mundo, González, who is the head of Better Spain, a civic group promoting transparency in public life, berated Sánchez and Alberto Feijóo, the conservative leader of the opposition, for not tackling loopholes in legislation dealing with conflicts of interest.
With other senior figures under scrutiny, political observers in Madrid are warning that the fallout may yet widen. The investigation continues.
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