SPAIN: Inaki Urdangarin, thea son-in-law of Spain's King Juan Carlos, was Saturday questioned by a judge and prosecutors about corruption allegations which have threatened to tarnish the royal family. Urdangarin, speaking to reporters on the steps of the court, said: “I have come to clarify the truth and restore my honour.” Some 500 anti-monarchist protesters were outside the court for Urdangarin's appearance. The 44-year old former Olympic handball player is the husband of Princess Cristina, the middle one of Juan Carlos' and Queen Sofia's three children. On marrying the princess in 1997, he was given the title of Duke of Palma de Majorca. The couple have four children. The roots of the scandal lie in the non-profit Noos Institute, which the duke headed from 2004 to 2006. Urdangarin and his business partner Diego Torres are suspected of using the institute to organize events related to sports and tourism in the Balearic Islands and eastern Valencia, diverting public and private funds to a network of companies they created. Some of the funds were placed in tax havens. The Noos Institute received 5.8 million euros (7.5 million dollars) in public funds between 2004 and 2007. Ising the name of the Duke of Palma drew money for the institute, according to witnesses who have been questioned by investigating prosecutors. The king forced Urdangarin to leave the Noos Institute in 2006, but he allegedly remained involved with illicit financial activities, according to investigators quoted by press reports. Urdangarin moved with his family to the United States in 2009, reportedly on advice from the royal palace. Urdangarin and Torres have now been made official suspects in the case. Cristina was involved with the Noos Institute and with one of Urdangarin's companies, but investigators have found no evidence of her having been aware of anything illegal. A small far-right group, however, has lodged a petition with the judiciary to make her a suspect as well. The inquiry is linked to a string of inquiries dealing with alleged corruption in the Balearic Islands under 2003-2007 regional premier Jaume Matas, a former Spanish environment minister, who has gone on trial for corruption-related offences. The scandal made the royal family to quickly distance itself from Urdangarin. A palace spokesman said his behaviour was “not exemplary” and his waxwork image was removed from the royal family group at the Madrid wax museum. The Zarzuela royal palace also took the unprecedented step of making its budget details public, in a show of financial transparency. King Juan Carlos did not meet Urdangarin when he returned from the United States on Tuesday for the court hearing, the daily ABC reported. Princess Cristina has also returned to Spain. Urdangarin has maintained his innocence. His lawyer and the king's sister accused the media of condemning the former athlete before he had a chance to defend himself. Revelations about the duke's allegedly fraudulent earnings – which allowed him to buy his family a luxury villa in Barcelona – have not gone down well in Spain, where more than five million people are unemployed and the government has announced drastic spending cuts. Despite growing anti-monarchist sentiment among separatists in north-eastern Catalonia in recent years, the Spanish royal family still enjoys a widespread popularity largely based on the king's contribution to helping the country consolidate its democracy after the death of dictator Francisco Franco in 1975. Authors: Hubert Kahl, Sinikka Tarvainen