The 1 billion euros from Matas that still mortgage the Balearic Islands

PalmJaume Matas's time in regional politics will be remembered for decades, not only for the corruption cases that landed him in jail, but also for the financial burden he placed on the citizens of the Balearic Islands, who are still footing the multimillion-euro bill for his follies. The regional government will pay the final 2.7 million euros for the Palma Arena project in July: this infrastructure will have cost a total of 89.2 million euros, almost three times the initial estimate, and more than double the original tender amount.

In contrast, the highways in Ibiza will continue to weigh heavily on the Balearic Islands' public budgets until the early 2030s. Of the initially projected €170 million, the final cost will exceed €600 million, one of the highest increases in a public works project in Spain. If the Convention Centre and other projects, such as the metro, which were partially financed with debt, are included, the islanders are still paying over €1 billion from that period.

Exorbitant cost overruns have resurfaced thanks to MÉS per Mallorca, which has secured a commitment from the Balearic Government to allocate at least a portion of the €2.7 million it was paying annually to cover the velodrome's debt "to the Balearic Sports Foundation, to strengthen grassroots sports and facilities," explained the deputy. In this way, MÉS has ensured the Government will commit to using at least some of the resources that, until now, were paying for "the legacy of mismanagement," in Ramon's words, to transform the substantial sum "into an opportunity for social return."

The story of a misstep

The Palma velodrome was conceived as a sports infrastructure linked to the 2007 Track Cycling World Championships and was bid on for around 40 million euros. The irregularities in the management process that led to Jaume Matas's conviction—which the Supreme Court reduced to nine months in prison for influence peddling—were numerous. In statements made years ago on the program Chronicles Miquel Àngel Verger, the project engineer from TV Mallorca, when questioned by journalists about the causes of the exorbitant cost overrun, openly admitted that the project's contractor, Ralph Schürmann, "had made up the prices" because he had no experience in stadiums, only in tracks.

With this situation, and with a series of contract extensions and spending without any administrative oversight, the bill grew exorbitantly, as documented in the criminal proceedings of the case. The Illesport Foundation was the entity used to circumvent some of the controls. The investigation even uncovered fabricated acts in which important decisions were made that committed public resources to ensure the project's completion.

With this increase, a total of 90 million euros has had to be paid, which will be settled this year after almost two decades. The Palma Arena case is not limited to the building itself. Around it, episodes occurred that have become symbolic of an era. One of the most surreal aspects of this public works project, built to host the 2007 Track Cycling World Championships, occurred when it was discovered that, despite having hired a specialist in the field, the facility ultimately did not meet the regulations to be certified for these competitions.

Not only would it end up costing three times the original bid, leading to one of Jaume Matas's criminal convictions, but it also failed to meet regulatory standards. Specific homologation was required for the World Cup, highlighting the complete disarray. On opening day, Matas said in his speech, "We deserve the Palma Arena."

Among Jaume Matas's megalomaniacal projects was also the Calatrava opera house, a building that was never constructed, but for which approximately €1.2 million was paid just for the preliminary design and model. These decisions exemplify, according to most court rulings, a management style characterized by grand announcements and public spending that, in some cases, did not translate into real infrastructure or a direct return for citizens.

The most overpriced highways

Another particularly relevant case is that of the Ibiza highways, where the cost overrun lies not so much in the initial construction as in its financing system. The roads, which turn 20 this year, cost around €170 million, but the shadow toll model has raised the total cost that the government will ultimately bear to nearly €600 million. This entails the payment of an annual fee to the concessionaire, a fee that remains in effect over time and makes this infrastructure one of the main current financial burdens on the regional budget. Unlike other projects, the cost was not finalized upon inauguration: the regional government will continue to pay for these highways until approximately 2035, extending the impact of a decision made twenty years ago for decades.

Recent episodes of heavy rainfall in Ibiza have highlighted the structural deficiencies of the island's highways, built during Jaume Matas's time in office. Besides causing "irreversible" territorial destruction, in the words of GEN-GOB, and significant social disruption for the small landowners whose properties were paved, the recent rain has called into question the technical quality of the design and construction. The airport highway had to be closed for days due to drainage problems, a situation that left-wing parties described as "unacceptable and disgraceful," according to the Secretary General of the PSOE in Ibiza, Vicent Rosselló. "They were built without foresight and without respecting any kind of technical specifications," he lamented.

The public bailout of the Congress Palace

The Palma Convention Centre also falls into this pattern of budget overruns and delays. It too was conceived during Jaume Matas's tenure as a major catalyst for boosting the economy and business tourism. The problem arose when, after construction, it became clear that most of the hotel owners who had been demanding this facility for years had already installed similar amenities in their establishments. Consequently, the difficulty in finding private operators interested in managing the facility, coupled with the extended construction time and cost overruns, became a serious issue. In 2009, at the height of the economic crisis, the Barceló Group abandoned the project, citing legal uncertainty and viability concerns, leaving the infrastructure without a clear operator.

The Administration and the Palma City Council had to assume responsibility for completing the works and the cost overruns resulting from "poor planning, a disaster in the management of the public interest," in the words of former mayor José Hila, who had to cancel one of the contracts. All of this forced the institutions to seek solutions through public tenders, some of which were declared void and others challenged due to alleged irregularities. It wasn't until 2016 that Melià Hotels International won the bid to operate the complex for 15 years, with an annual fee exceeding 2 million euros. According to industry sources, without the beachfront hotel, "the Conference Center would be operating at a loss."