GUATEMALA: HIGH-PROFILE CORRUPTION CASES ROCK NATION
Introduction
A year of turmoil in Guatemala has been marked by a series of high-profile corruption cases that have implicated some of the country’s most powerful figures, including former President Otto Pérez Molina and his Vice President Roxana Baldetti. In this special report, we break down the key details of four major corruption cases that have shaken the nation.
Case 1: LA LÍNEA - THE CUSTOMS SCANDAL
Overview
The first major corruption case to emerge was “La Línea,” a customs scandal that led directly to Pérez Molina’s resignation and the jailing of both he and Baldetti. The scam involved lowering taxes on importers in exchange for financial kickbacks, earning an estimated $328,000 per week between May 2014 and February 2015.
Key Figures
- Salvador Estuardo González Álvarez (alias “Eco”): Alleged top member of La Línea who testified that Pérez Molina and Baldetti earned the most in the kickback scheme.
- Otto Pérez Molina: Former President of Guatemala who was involved in the customs scandal and eventually resigned.
- Roxana Baldetti: Vice President of Guatemala who was also implicated in the scandal and eventually jailed.
Impact
The La Línea scandal led to the resignation of Pérez Molina and the jailing of both him and Baldetti. It is estimated that upwards of 60 people may have been involved in the network, although investigators believe it was actually composed of two subgroups with interaction limited to several intermediaries.
Case 2: QUETZAL PORT - THE CASE OF CORRUPT CONTRACTORS
Overview
On June 2, officials from the Attorney General’s Office and CICIG announced accusations related to an illegal campaign finance and government-contracting network allegedly run by Pérez Molina and Baldetti. Formal money laundering and corruption charges followed on June 16.
Key Figures
- Otto Pérez Molina: Former President of Guatemala who was involved in the corrupt contracting scheme.
- Roxana Baldetti: Vice President of Guatemala who was also implicated in the scheme.
- Salvador Estuardo González Álvarez (alias “Eco”): Alleged top member of La Línea who testified that Pérez Molina and Baldetti earned the most in the kickback scheme.
Impact
The Quetzal Port case uncovered a criminal network organized and led by Pérez Molina and Baldetti that received illicit funds from a group of state contractors to help finance their 2011 presidential election campaign. Contractors provided these funds on the promise they would be given preferential treatment in winning state contracts should Pérez Molina be elected president.
Case 3: COOPERACHA - THE CASE OF CORRUPT OFFICIALS
Overview
The most recent corruption case to surface is that of “La Cooperacha” (Kick-In), which was presented by Guatemalan Attorney General Thelma Aldana during a June 11 press conference. The case involves at least five ministers, including the former heads of Guatemala’s Defense, Communications, Energy, and Interior Ministries, and the head of Guatemala’s Social Security Institute (IGSS) during Pérez Molina’s government.
Key Figures
- Mauricio López Bonilla: Former Interior Minister who was arrested in connection with the case.
- Otto Pérez Molina: Former President of Guatemala who was involved in the corrupt contracting scheme.
- Roxana Baldetti: Vice President of Guatemala who was also implicated in the scheme.
Impact
Those arrested included former Interior Minister Mauricio López Bonilla. These officials are accused of spending over $4.7 million during a three-year period to buy Pérez Molina luxurious birthday gifts, including a powerboat in 2012, a luxury beach house in 2013, and a $3.5 million helicopter in 2014.
Conclusion
Taken as a whole, the cases illustrate an administration organized around corruption: allegedly using a corrupt campaign finance scheme to cheat its way into office, and using its influence and offices to steal money from an already impoverished nation, while collecting bribes from foreign and domestic government contractors and other businesses. The cases have left Guatemalans reeling, with many questioning the very foundations of their government and institutions.
As the country struggles to come to terms with the scale of corruption, Insight Crime will continue to monitor developments and provide updates on these and other cases that threaten to undermine the stability of Guatemala’s fragile democracy.