Financial Crime World

Corruption and Organized Crime in Guatemala: A Story of Power and Repression

Introduction

During President Jimmy Morales’ administration (2016-2020), corruption and organized crime continued to plague Guatemala. This article examines the situation, highlighting the role of powerful businesspeople and politicians who formed an alliance to undermine efforts to combat corruption.

The Cooptation of the State Case

The Cooptation of the State case, which involved eight government offices and a total of $75 million in bribes, demonstrated that corrupt schemes were widespread within the Guatemalan state. Businesspeople behind these cases reacted strongly to investigations, with some even threatening to stop them if they continued.

The Role of CICIG

The International Commission Against Impunity in Guatemala (CICIG) was established in 2007 to investigate corruption and organized crime in the country. Its head, Iván Velásquez, had a strong commitment to combating impunity. However, the Morales administration eventually turned against CICIG, deploying the army to intimidate its officials and undermine its work.

Polarization of Guatemalan Society

The repression led to a polarization of Guatemalan society, with some people supporting the government’s actions and others defending CICIG. This division has contributed to a breakdown in trust between citizens and institutions.

Rise of Drug Trafficking

In areas where the state has no control, such as Huehuetenango and Izabal, drug trafficking has risen linked to Mexico’s Sinaloa Cartel. This highlights the need for effective governance and security measures to combat organized crime.

Key Points:

  • The Cooptation of the State case involved $75 million in bribes paid by businesspeople to government officials.
  • Powerful businesspeople and politicians formed an alliance to undermine efforts to combat corruption.
  • CICIG was established in 2007 to investigate corruption and organized crime in Guatemala, but its work was eventually undermined by the Morales administration.
  • The repression of CICIG led to a polarization of Guatemalan society.
  • Drug trafficking has risen in areas where the state has no control, such as Huehuetenango and Izabal.