The European Public Prosecutor’s Office (EPPO) has launched an investigation into potential fraud involving European Union funds used for the maintenance and modernization of the Madrid-Sevilla high-speed rail line. This inquiry follows the fatal train collision in Urda, Toledo, on October 28, 2026, which resulted in 69 deaths.
Investigation into security and signaling contracts
The EPPO is scrutinizing contracts related to the safety, signaling, and communication systems of the Madrid-Sevilla line, which is among the most heavily funded rail projects in the European Union. According to an estimate by the Court of Auditors, Adif has been allocated 261.6 million euros in Next Generation EU funds for renovation projects on this route in recent years. This figure includes several contracts awarded by the Spanish railway manager, which is the principal recipient of these funds in Spain charged to the Recovery and Resilience Facility.
A 94-million-euro contract for this upgrade—specifically awarded for 93.83 million euros with VAT to Thales, now Hitachi Rail, in October 2021 for the renewal of signaling installations, ERTMS, DCOs, and fixed telecommunications—is under review. The French firm was one of the main beneficiaries in Spain of Next Generation funds with 119.7 million euros, according to a list published by the Ministry of Finance in 2023. The contract was originally tendered and awarded by Adif in 2021.
Did You Know? The contract for upgrading the safety system was awarded to Thales with a price point that initially drew questioning regarding a possible “reckless bid,” though Thales successfully secured the order.
Civil Guard searches offices for contract documents
The investigation coincides with parallel inquiries into the causes of the Urda accident and a previous fatal accident in Adamuz, Córdoba, on January 18, 2026, which killed 46 people. Agents from the Central Operative Unit (UCO) of the Civil Guard have searched the offices of Adif, the State Agency for Railway Safety (AESF), and the Court of Auditors to secure documentation regarding these contracts. Armed forces agents appeared at these offices to deliver various requirements related to different public procurement files, focusing on actions for the renewal of signaling and communication systems, requests that Adif addressed by providing total collaboration. State security force sources revealed that the request for information by the European Prosecutor’s Office is based on the suspicion of irregularities in the companies awarded the maintenance contract for the Madrid-Sevilla line.
The scope of the review includes the radiotelephony and telecommunications systems, specifically the Global System for Mobile Communications Railways (GSM-R). Officials are examining whether funds were properly utilized for the maintenance of these systems during the transition period between the old and new technologies. The first phase of the contract was awarded for 21 million euros to a temporary business union (UTE) formed by Ferrovial Construction, Grupo Azvi, Convensa, and Agrupación Guinovart. Meanwhile, Grupo Azvi is not formally investigated regarding the alleged public works irregularities and rigging probed by judge Ismael Moreno.
Minister downplays safety system rollout delays
Former Transport Minister Óscar Puente downplayed the delay in the ERTMS rollout, even though, according to the European rules for this type of funding, execution should have been completed this year, and maintained that the LZB system, which has failed more than 170 times this year, is as safe as the new one. For the inquiries into the Adamuz case, the National Court designated judge José Luis Calama to act as the guarantee magistrate.
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European agency investigates potential rail fraud
Why is the European Public Prosecutor’s Office investigating a Spanish rail line?
The EPPO is responsible for investigating crimes that affect the financial interests of the European Union. The agency launched this investigation to determine if there was fraud in the use of EU-funded projects intended to improve safety and signaling on the Madrid-Sevilla line.
What specific systems are being reviewed by investigators?
The investigation centers on the maintenance of the existing LZB safety system and the ongoing, delayed implementation of the ERTMS system. The EPPO is reviewing contracts related to the radiotelephony and telecommunications systems.
What is the status of the contracts mentioned in the investigation?
The primary contract for the ERTMS upgrade, valued at approximately 94 million euros, was awarded to Thales in 2021 and later transferred to Hitachi Rail in July 2024. While it was expected to be completed by February 2026, the project is currently running 12 months behind schedule.
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