The "dramatic" accounting of Casa Árabe under the leadership of Irene Lozano that has led Almeida to close the headquarters of Alcalá, 61: "It is a chiringuito of the biographer of Sánchez"

The historic Neomudéjar building known as the Escuelas Aguirre, located on Calle Alcalá in Madrid, has been home to Casa Árabe since March 2008. This architectural landmark was originally granted to the institution with the aim of strengthening cultural ties between Spain and the Arab world and positioning Madrid as an international meeting point. However, after nearly 18 years of occupancy, the Madrid City Council has decided to reclaim the property. The deadline for Casa Árabe to vacate the premises is set for September 1, following the decision made by the city government. This move comes after the Community of Madrid announced its withdrawal from the consortium managing Casa Árabe earlier this year, citing concerns over financial mismanagement and structural neglect.

The decision by the Madrid City Council to take back the Escuelas Aguirre stems from a critical evaluation of Casa Árabe's financial situation and its failure to maintain the building properly. According to reports, the organization had been operating under significant deficits, with expenses consistently exceeding income. In 2023 alone, Casa Árabe spent 3.15 million euros while generating only 2.09 million in revenue. The Court of Audits highlighted that these expenditures were 51% higher than the income generated, forcing the institution to rely heavily on accumulated reserves from previous years to sustain operations. The financial projections for 2025 indicated further deficits, with spending surpassing income by 1.4 million euros and the cash reserve expected to be depleted by 2026.

During the tenure of Irene Lozano, who led Casa Árabe from 2022 to 2024, there was a notable increase in personnel costs. These expenses rose from 1.08 million euros in 2021 to 2.03 million euros budgeted for 2025, representing an almost 87% increase. The average annual salary per employee reached approximately 69,957 euros, while Lozano herself received more than 97,000 euros annually. Despite these figures, the organization faced challenges in securing funding, leading to the approval of budgets for 2023 and 2024 with projected deficits. The Ministry of Foreign Affairs was the sole administration to support the 2025 budget, while others, including the Madrid City Council, the Community of Madrid, the Andalusian Government, and the City Council of Córdoba, demanded a viability plan and an external audit before agreeing to fund the organization.

In addition to financial issues, Casa Árabe also faced scrutiny over procurement practices. The Court of Audits found legal violations in 63% of reviewed contracts. Among smaller contracts, 74% lacked the required contracting body report, 70% did not justify why they could not be split into multiple contracts, and 61% failed to request three bids or explain why they were not needed. Furthermore, the contracts signed during Lozano’s first full year in office, 2022, were not published on the Public Procurement Platform. The subsequent management attributed this absence to the manager sending the list to the Court of Audits but failing to upload it to the platform.

The Court of Audits also noted that Casa Árabe lacked a formal internal control system and did not adequately identify its risks. These deficiencies made it difficult to track certain expenses, travel, and contracts. Documents from Lozano’s tenure warned about the deterioration of the Escuelas Aguirre building, noting risks such as ceiling detachment and leaks. Repairs for water damage were estimated at 300,000 euros, while replacing parts of the roof was calculated at around 150,000 euros. These issues contributed to the decision by the Madrid City Council to reclaim the building for restoration and potential municipal use.

The Madrid City Council emphasized that the decision to reclaim the Escuelas Aguirre was based on both the financial instability of Casa Árabe and the poor condition of the building itself. The council stated that the structure required urgent restoration work that had not been carried out during Lozano’s leadership. The mayor, José Luis Martínez-Almeida, criticized the management of Casa Árabe under Lozano, describing it as a “chiringuito” (a small, informal business) and a waste of resources. He pointed out that the organization had left the building in disrepair, which posed serious structural risks. The council plans to carry out necessary restoration and conservation work on the building and intends to return it to public use once completed.

The Madrid City Council has given Casa Árabe two months to vacate the Escuelas Aguirre and has expressed willingness to assist the organization in finding alternative accommodations. The decision marks a significant shift in the relationship between the city government and Casa Árabe, reflecting growing concerns over the institution's financial health and its ability to manage the historic building effectively. With the deadline approaching, the future of Casa Árabe remains uncertain, as it faces the challenge of relocating and addressing its ongoing financial difficulties.