A judge questioned Spanish King Juan Carlos's son-in-law Inaki Urdangarin on Saturday in a corruption case that has caused a rare embarrassment for Spain's royals.
Scores of noisy anti-monarchy protesters demonstrated in the street nearby as Urdangarin, the Duke of Palma, arrived on foot at the high court in Palma, on the island of Majorca, accompanied by his lawyer.
The tall and lanky 44-year-old, a former Olympic handball player, is suspected of embezzling public money paid to a charity that was under his control. He has denied any wrongdoing.
"I am appearing today to demonstrate my innocence," the duke, dressed in a black jacket and grey tie, told the waiting media outside the court.
"I have carried out my responsibilities and taken decisions correctly and with total transparency," he added.
In the closed-door hearing that followed, investigating judge Jose Castro questioned the duke over the workings of companies involved in the case, said a court official who asked not to be named.
"My intention today is to clarify the truth of what happened. I am convinced that my declaration today will help to do so," Inaki said as he headed into court.
The case implicating Urdangarin, who is married to the king's youngest daughter Cristina, is the first major scandal to touch Juan Carlos's family.
The allegations of royal corruption have raised indignation at a time when Spaniards are suffering the effects of an economic downturn, tough spending cuts and an unemployment rate of nearly 23 percent.
About 200 protesters, some wearing cardboard crowns, whistled and jeered as the duke arrived just before 9:00 am (0800 GMT). They were kept back by metal barriers and dozens of riot police in blue.
"Mind your wallet, Urdangarin's coming," some yelled, while others waved banners reading "Inaki, you owe us money" and "So much nobility and the people live in poverty".
One woman turned up in a black and white striped prison uniform with a sign that read: "Inaki, see you in your new mansion".
"We want justice to be the same for all Spaniards. He should be convicted," said Claudio Borilla, 58, who held up a sign depicting the king as the main character in the mafia movie "The Godfather."
The hearing was part of a preliminary investigation into the case, in which Urdangarin is a suspect along with former associates.
He is suspected of siphoning off money paid by regional governments to the Noos Institute, a charitable organisation he chaired from 2004 to 2006, for staging sporting events and conferences.
King Juan Carlos has sought to distance himself from the affair and in December the royal family suspended Urdangarin from official engagements.
The court official said the investigating judge will decide whether to order a trial and charge the suspects, or drop the case. The investigation could go on for months more before such a decision is made, the official said.
Late last year the palace confirmed reports that the king in 2006 ordered Urdangarin to step down from his job at the Noos Institute, leading some to question the monarch's handling of the case.
The duke has insisted the palace had nothing to do with his private activities.
"The king should be here as well if he knew what was going on," said Aurora, a protester in her 40s who declined to give her last name.
Since 2009 the duke, his wife and their four children, have lived in Washington, DC, where he works for the Spanish telecommunications company Telefonica.
Urdangarin won two bronze medals with the Spanish handball team at the 1996 and 2000 Olympic Games.
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