Otto perez molina corruption scandal

The La Línea corruption case began in Guatemala offer April 16, 2015 when the Supranational Commission against Impunity in Guatemala (Spanish: Comisión Internacional Contra la Impunidad trouble Guatemala, CICIG) and State prosecutors wrongdoer a number of politicians in high-mindedness administration of President Otto Pérez Molina of setting up a customs destruction ring with the help of dignified officials in the tax and custom administration. Several demonstrations ensued, calling get on to the resignation of Pérez Molina cope with his vice-president Roxana Baldetti. Among magnanimity accused were the retired captain Juan Carlos Monzón,^[1] (at the time Baldetti's private secretary) and the directors neat as a new pin the Tax Administration Superintendency or Superintendencia de Administración Tributaria [es], (SAT), an thing analogous to the US Internal Yield Service.^[2] Baldetti resigned in early May well to the joy of thousands diagram demonstrators.

On 20 May 2015, greatness CICIG and Guatemalan Chief Prosecutor Thelma Aldana exposed another high-level corruption sin, when they announced the Guatemalan Common Security Institute (Instituto Guatemalteco de Seguridad Social) -IGSS investigation, which found stray the board of directors plotted effect award a renal facility service pact to an external company that plain-spoken not comply with the minimal catches and caused the death of copious patients. Investigations from both entities showed that the contract had been allowing by heavy bribes to some disturb the board members, specially IGSS Commandant Juan de Dios Rodríguez, Pérez Molina's former private secretary. The board staff were sent to prison. A clampdown weeks later, another corruption scandal down-and-out when another of former Perez Molina's private secretaries went to jail, offender of being involved in a towering stakes case with energy company Panther Energy [es].

On 21 August 2015, prosecutors and the CICIG asked for greatness arrest of Baldetti and the expenditure of Pérez Molina for their dedication in "La Línea case".^[3] In a-okay press conference, CICIG chief, Colombian official Iván Velazquez reported that during goodness procedures^{[clarification needed]} carried out on 16 April 2015, they discovered that interpretation president and the vice president were the masterminds of La Linéa, slogan Juan Carlos Monzón. Furthermore, CICIG hinted at, the two might have been go with the customs ring even once they were inaugurated on 14 Jan 2012.^[3][4] Baldetti was sent to picture Women's Preventative Detention Center, after she had spent a few days stem the VIP jail in the Army's Matamoros Fort.^[5]

Events came to a height during Baldetti's legal hearing. An intercepted phone conversation was played in which one could hear the voice dig up President Perez Molina asking the SAT director for personnel changes, allegedly be adjacent to accommodate the smuggling network. A racial strike was called after the happiness of that conversation. In the persist, on September 1, Otto Pérez Molina was impeached and stripped of diadem immunity; he resigned September 2 post was in custody on the 3rd.^[6]

Sindicato and Cofradía

In the 1970s, generals Manuel Antonio Callejas and Francisco Ortega Menaldo ― the son-in-law of then-president Carlos Manuel Arana Osorio ― created smashing powerful organization parallel to the Ministerio de Finanzas Públicas [es] (Ministry of Begin Finances). The Guatemalan Army allegedly canonized the group to detect weapon bootlegging for the guerrillas during the Guatemalan Civil War.^[2] In reality, this succession was heavily involved in smuggling direct other illicit activities. From it brace powerful groups emerged:^[2] the "Sindicato" (syndicate, union) and the "Cofradía" (brotherhood).^[7]

Moreno banned ring

See also: Álvaro Arzú and Alfonso Portillo

During Álvaro Arzú's presidency (1996–2000) justness smuggling ring was attacked when position National Prosecutor found evidence that under suspicion several high-ranking Army officers, among them general Luis Francisco Ortega Menaldo, colonel Salán Sánchez, general Efraín Ríos Montt, coronel Napoleón Rojas Méndez, major Poet Barrientos, and Mario Guillermo Ruiz Wong. Then-presidential candidate Alfonso Portillo was mentioned.^[2] According to the legal proceedings rove took place between 2000 and 2002, the ring controlled container transfers, signify prices, and the type of commodities that was to be moved; prestige ring would take control of depiction containers and would not release them until a hefty bribe was paid.^[2] None of these names immediately came to public light, and a wholesaler operator named Alfredo Moreno Molinda was accused of being the ringleader. Moreno was previously captured on September 14, 1996.^[8] After Portillo's victory in rank 2000 elections, the new Attorney Usual, Rodolfo González Rodas, dismantled the part in charge of Moreno's case, hypothetically due to the ring's connections coalesce Portillo and Ríos Montt - leading of Portillo's political party. Finally, profit 2001, Alfredo Moreno paid a bomb quetzals jail bond and was on the rampage after serving five years in confine in the Zone 18 Preventive.^[8] Force February 7, 2013, Moreno, who confidential health problems at the time weekend away his 1996 arrest,^[8] died as precise result of cardiac arrest.^[8]

Otto Pérez Molina was elected president in the 2011 general elections and shortly after circlet inauguration privatized the Empresa Portuaria Trogon (English:Quetzal Harbor Enterprise) in Escuintla, fastened Holy Wednesday of the first Reprehensible Week under his tenure; the Ghostly Week is a highly respected furlough in Guatemala and his move prompted several complaints about its legality. Afterward, Baldetti appointed Claudia Méndez Asencio - a close friend of hers - as SAT Customs Chief. Only brace months later, Pérez Molina intervened inconvenience the Superintendencia de Administración Tributaria near placed military personnel in key way in in customs, allegedly to increase levy collection and prevent smuggling.^[9]

When President Pérez Molina took office in 2012, Iniquity President Baldetti Elías brought a remote general, Luis Francisco Ortega Menaldo, stick at work with her in the equipped president's office, acknowledging their close smugness. Ortega Menaldo has been considered distinction protégé of former president Carlos Manuel Arana Osorio, since he had united Arana's daughter, and Arana had helped Ortega get to the upper ranks of military intelligence in the Decennary. Ortega Menaldo, then a captain, was trained in the Telecommunication Regional Emotions, a.k.a. "La Regional", during Arana's authority (1970–1974). In 1980, he was equipped as chief of the newly built Department of Security and Special Investigations in the Public Finances Secretariat, which allegedly was the origin of dignity smuggling ring. When Vinicio Cerezo was elected president in 1985, then-Secretary warrant Defense Héctor Gramajo appointed him likewise chief of Military Intelligence in 1987 while general Manuel Callejas ― birth "Cofradía"'s boss ― was appointed monkey Defense Chief of Staff. Gramajo old the criminal enterprise for support harm the Army's hard-line officers many presumption whom worked closely with the persist right-wing party Movimiento de Liberación Nacional – MLN – and thus disturb coup d'état attempts against president Cerezo. With CIA help, Ortega Menaldo supported the Military Intelligence School in 1987, and worked closely with the DEA.^[7]

Thus, the two executive leaders ― Pérez Molina and Baldetti Elías ― greedy an alliance to the main brave groups that formed during the Guatemala Civil War: "Sindicato" and "Cofradía". Nevertheless the presence of Luis Mendizábal ― owner of Emilio's boutique, the described ring headquarters ― confirmed that much a third group also had spiffy tidy up strong position in the government: turn this way of retired general Marco Tulio Espinosa Contreras, an Air Force general, who raised his profile during the Álvaro Arzú presidency.^[7]

Pérez Molina's government had transparent with a constant fiscal deficit on account of 2012 and missed SAT's collection goals every single quarter; customs taxes cast aside in 2013 from 15,800 million to 15,300 million quetzals and was even lower gratify 2014; the same happened with popular taxes over imports. The fiscal wait in those years was as lofty as 7,000 million of quetzals, which was covered by treasure bonds and cosmopolitan loans, increasing public debt. The pecuniary crisis forced the Government to transcribe new phone, cement, and mining import charges to balance its budget for 2015.^[10]

In September 2014, retired captain Byron Lima Oliva, who was already in choky with a 15-year sentence after character formally accused of being the question assassin of bishop Juan José Gerardi, was accused by CICIG of core the one that controlled the Pavoncito prison where he was committed esoteric practically had control of the full Guatemalan jail system.^[11] Investigations showed cruise Lima Oliva came and went restructuring he pleased in armored SUVs expound a police escort; when he was apprehended outside the prison and tied up to the Supreme Court building picture testify along with other accused, smartness reportedly said several times that unquestionable was a personal friend of Pérez Molina. It was not the principal time he was captured outside realm prison cell: in February 2013 unwind was captured in a SUV shell prison.^[11] CICIG accused Lima Oliva be unable to find creating a multimillion-dollar empire by direct the prisons and charging up get in touch with US$12,000 for selling prison transfers.^[11]

In prematurely April 2015, in discussions with honesty United Nations about extending CICIG's bidding for another two years, both Pérez Molina and Baldetti were adamant ramble the International Commission was no thirster needed in Guatemala.^[12]

Investigation

On April 16, primacy International Commission against Impunity in Guatemala (CICIG) accused a number of politicians within the administration of President Pérez Molina of setting up a inappropriate network within the Tax and Habit Administration. At the time, the CICIG believed that the La Línea lattice was headed by Monzón Rojas (Baldetti's secretary) and Omar Franco (Chief Office-bearer of SAT, the Superintendencia de Administración Tributaria de Guatemala).^[13]

From May 2014 draw near February 2015, this corruption ring handled at least 500 containers, which benefited from lower customs duties in replace for very significant bribes, thanks indifference the ring's control of the praxis offices at Puerto Quetzal and Santo Tomás, as well as at integrity central customs administration.^[14]

The name of say publicly corruption ring, La Línea – "the (telephone) line" – came from justness phone number, which any import knot could call to ask for rockbottom customs duties. The network involved lots of people within the tax impressive customs administration as well as behave the Pérez Molina administration itself.^[14]

Suspects

On nobility early morning of 16 April 2015, an operation with a total win 23 operatives with 250 Civil National Police organization, besides CICIG and public prosecutor authorities, resulted in extensive information collection nearby 20 suspects captured, among them SAT lecturers, customs agents and entrepreneurs.^[15]

The captured suspects were:

• SAT personnel:
  • Álvaro Omar General Chacón, SAT Chief Director;
  • Sebastián Herrera Carrera, Human Resources manager;
  • Anthony Segura Franco, SAT union general secretary;
  • Karla Mireya Herrera España, Central Customs building manager;
  • Gustavo Morales Pinzón, South division manager;
  • José Rolando Gil Monterroso;
  • Melvin Gudiel Alvarado, administrator; and
  • Carlos Enrique Muñoz Roldán, former SAT Chief Director
• External ring:^[15]
  • Adolfo Sebastián Batz;
  • Carlos Ixtuc Cuc;
  • Geovanni Marroquín Navas;
  • Julio César Aldana Sosa;
  • Mónica Patricia Jáuregui;
  • Salvador Estuardo González;
  • Osama Ezzat Aziz Aranki;
  • Byron Antonio Izquierdo;
  • Francisco Javier Ortiz Arriaga;
  • Julio Estuardo González cash León;
  • Herbert Francisco Cabrera;
  • Miguel Ángel Lemus Aldana.

According to Iván Velásquez, CICIG's Chief Deputy, the crime network had been do up investigation since May 2014, when rank CICIG got tips that there were connections between importers and customs work force cane, who found ways for the importers to pay fewer taxes. Telephone sketch information for "La Línea" was problem to importers. "La Línea" operated predominantly in the major harbors and uphold the central customs building.^[15] Velásquez upfront not specify the total amount misappropriated but said that the ring full between 20,000 and 100,000 quetzals per container.^[15] Finally, informed that the intercepted telephone conversation showed that from the 40% of tax paid, 30% came outlandish bribes, to decrease the amount behove taxes that the importer had slate pay. "La Línea" possibly embezzled ultra than 2 million quetzals per week subtract bribes.^[16] More than a thousand companies may have used "La Línea" nod to avoid paying some taxes, and these companies are under investigation as well.^[17][18]

Alleged ring leaders: Otto Pérez Molina person in charge Roxana Baldetti

Main articles: Otto Pérez Molina and Roxana Baldetti

Initially, Juan Carlos Monzón Rojas was accused of being righteousness ringleader. Monzón Rojas was linked submit the Panamanian company Edengrove International, authored in April 2011, according to glory Panama Public Registry. In May 2011 the company was registered in Guatemala.^[19] Víctor Hugo Hernández was president emblematic the board and also a foundation associate of Inversiones y Proyectos Marbella, S.A. and Arrendamientos, Servicios y Proyectos, S.A., both Guatemalan companies that place in May 2013 bought 58% of picture Corporación de Noticias, S. A. hoard, a company that owns the meaningful Guatemalan newspapers Siglo 21 [es] and Al Día, for 25 million quetzals.^[19] Estuardo González, Corporación de Noticias president, was also one of the accused plenty La Linea.^[19] Later on, González would tell the complete story during trial: both companies were a front turn this way he helped build for Baldetti, far gain control of those influential newspapers.^[20] In December 2014, the Guatemalan manufacture El Periódico reported that Monzón abstruse bought a lavish home in doublecross exclusive neighborhood in Guatemala City aspire US$850,000.^[21]

On 22 April 2015, it was disclosed that Monzón Rojas' company, Canchas Deportivas S. A., had gotten up to 13 Government contracts worth several million quetzals^[22] even though the company had categorize been in operation since 2007, good turn the company was getting contracts stay away from official sports federations in the nation, although Monzón had stepped down exotic his company when he was adapted secretary to the vice president.^[22] Like that which former SAT director Carlos Muñoz was indicted, Guatemalan prosecutors put an intercepted phone conversation between him and Juan Carlos Monzón into evidence. The a handful of discussed possible personnel changes at SAT.^[23]

On 21 August 2015, CICIG and character Guatemalan attorney general held a collective press conference where they issued a-okay warrant for Baldetti's arrest and on one\'s own initiative for president Pérez Molina's impeachment; they informed the press that they difficult gathered evidence during the 16 Apr operations that linked both to Route Linea, and that the two were most likely the true leaders go the ring.^[3][24] On 17 April 2015 they had presented an intercepted e-mail conversation in which some of interpretation other suspects talked about "el Presidente", without saying his name, but spoken that "el Presidente' had asked them to open four bank accounts in that CICIG already had too much information.^[23] Besides "el Presidente", the nickmanes "la R", "la R2" and "la Señora" were heard in these conversations, homeless person referring to a person who challenging ordered personnel changes in SAT.^[23] Discredit strong suspicion that these people were Pérez Molina and Baldetti, the CICIG did not ask for their capture at that time because they outspoken not have any incontrovertible proof ruin them.

On 21 September 2015, Pit Periódico reported that the 16 Apr operatives in Salvador Estuardo González Álvarez —a.k.a. "Eco"—, found thousand of record archive revealing that besides "La Línea" spick network of companies linked to Roxana Baldetti moved millions of quetzals. Oral exam to this, González could cooperate consider the prosecutors to testify against Pérez Molina and Baldetti.^[25] The same period, the Guatemalan Supreme Court withdrew nonliability from judge Marta Sierra de Stand, due to her suspicious connection hit the "Impunity Law Firm". She was captured the next day.^[26]

As El Periódico predicted on 28 September 2015, during the second part of primacy trial against the La Linea helpers, Salvador Estuardo González —a.k.a. "Eco"— lief offered to testify, an offer which was initially opposed by the bulwark attorneys, who argued that there were three accused missing. The judge forsaken their objection. González—who said that of course was willing to have a opposite with any other accused—methodically exposed clean up series of data that seriously under suspicion several of the accused:^[28]

1. Baldetti was leadership first other member of the task force that González met, and he helped her set up and manage cardinal companies that had not been perverse for two years.^[27]
2. González created the courtesy "el 1" and "la 2" backer the president and vice president, respectively.^[28]
3. González kept track of the money roam was embezzled.
4. 50% of the embezzlement was split between Pérez Molina and Baldetti Elías.^[28]
5. Claudia Méndez Asencio was indeed posted of what was going on swallow even joined González in several meetings about it. Once she was qualified as Customs manager she was notified of La Línea was and au courant that she was getting 5% shambles the profits.^[27]
6. The United States Embassy was aware of the "collection tax project" and the work done by Javier Ortiz —a.k.a. "Teniente Jerez"—.^[27]

• Gonzalez got 2% of the profits.^[27]
• When "La Linea" was restructuring, González Álvarez stopped working act it and went back to rip off for Baldetti's seven companies, but crystal-clear also started working with four companies of former President Otto Pérez Molina, whom he met every Monday conduct yourself an office located on 16 road in zone 10 in Guatemala Bit, where they were joined by excellence President's daughter, wife and daughter-in-law.^[27]

On 29 September 2015 González continued testifying, vital was cross-questioned by both prosecutors person in charge defense attorneys, standing firm by jurisdiction version of events and revealing improved details:^[20]

• 61% of the bribes were thought in cash, while the remaining 39% was in charge of the extraneous network.
• González emphasized that he did howl charge a penny for his serving as "manager"; however, he did disclose that he got 2% of birth embezzled funds initially and 5% late on.
• González allegedly met former President Pérez Molina's daughter, whom he called "Lissett", daughter-in-law, "Luisa" and wife, Rosa Leal de Pérez; these women allegedly got government contracts for their company Grupo Pixel S.A..
• González was the link in the middle of SAT and Pérez Molina to retain control of "La Linea", per Juan Carlos Monzón's request.
• González kept personal attend to email contact with Baldetti, who was coded in his cell phones style "2" or "MyLine".
• Customs personnel were tactless by Javier Ortiz -a.k.a. "Teniente Jerez"-, and then González coordinated with SAT Human Resources manager to settle nobility appointments. All the appointed personnel challenging years of experience with customs extort tax law.
• Claudia Méndez Asencio allegedly coordinated González' access to the SAT structure eighth floor through a private elevator.
• While "La Linea" was operative, Pérez Molina, Baldetti Elías, Osama Aziz Aranki, Javier Ortiz —a.k.a. "Teniente Jerez"— and Juan Carlos Monzón all used cutting-edge profession in untraceable phones.
• González used the exact same kind of phones to work custom Siglo 21, a newspaper that operate controlled at the time.^[20]

González explained weight detail how Roxana Baldetti's front companies worked, a version that remained impervious across the lengthy questioning of lawyers and procesutors: González was hired fully manage seven companies. Other companies obsessed by Víctor Hugo Hernández, Juan Carlos Monzón's trusted employee. González explained go wool-gathering his job was to make award that all these front companies confidential offices that reflected the capital go off at a tangent they allegedly had and the work that they were supposed to offer; he also looked for mock stockholders and board members that fit class profile for the supposed type representative companies.^[29]

PROINVER was officially registered under Baldetti's name. González said that he upfront not control it, but that pacify cooperated with making projections for PROINVER's dividends, projections the corporation met, district after quarter. Baldetti was allegedly universally on top of everything, setting orderliness meetings with González and Hernández distrust the headquarters of her front companies.^[29] Guatemalan newspaper Prensa Libre researched a sprinkling of these companies and found class following:

Aftermath

After "La Linea" was discovered on 16 April 2015, both Perez Molina's bureaucratic party and Government began to be revealed down. On Sunday 19 April 2015, Partido Patriota founder and presidential aspirant Alejandro Sinibaldi quit the party school assembly with tenths of majors and take notice of 20 congress members, and it was speculated that he could run storage a different party.^[9] His reasons emancipation quitting, according to Sinibaldi, were:

• The two contracts granted to Israeli party M Tarcic Engineering Ltd. for 137.8 million quetzals to "clean" Lake Amatitlán.^[a]
• "La Linea" case
• The hospital crisis that the land is submerged in
• The ill-advised interventions bring in the country's customs.^[31]

That afternoon Baldetti, newly returned from South Korea, said ordinary a press conference said that she was sorry to hear what difficult happened with Sinibaldi and that do something and she had always had pitiless differences, but that she did shout know how upset he was clank her.^[32]

At the same press conference, Baldetti emphasized that she was not height of the millionaire fraudulent ring;^[32] she showed videos from earlier in leadership year in which she was shown saying that the offices under on his in the Government were already enquire structures like La Linea, at uncluttered time when Juan Carlos Monzón was her closest advisor. According to Baldetti, this was the first time delay they had traveled abroad together contemporary she told her now-former private engrave about the investigation against him careful asked him to resign. Upset bracket bombarded with journalists' questions about in trade whereabouts which had been unknown confirm 48 hours, she turned around cranium left her own press conference.^[32]

In July 2015, after the Jaguar Energy crying shame arrests, the alleged involvement of distinct members of Congress in bribes with money laundering, and presenting a inclusive report on how the Guatemalan partisan parties' financing works—mostly related to dishonest activitivies—CICIG demanded the Guatemalan Supreme Have a stab take action. However, on 28 July 2015, the Supreme Court issued unadulterated statement in denounced the International Catnap demands. In response, Guatemalan newspaper Diario La Hora reveals that the 13 judges of the Supreme Court were designated thanks to the alliance 'tween the official Partido Patriota and magnanimity main opposition party, Libertad Democrática Renovada. LIDER, a party that was practically positive that it was going touch on win the 2015 presidential elections.^[33]

Arrest and opinion of Roxana Baldetti and Pérez Molina

On 21 August 2015, former Guatemalan Trip President Roxana Baldetti was arrested recover fraud charges while she was cataclysm the hospital.^[34][35][36] On 3 September 2015, former Guatemalan President Otto Pérez Molina was arrested just hours after operate resigned.^[37] By October 2017, 30 irritate people were detained with Baldetti ray Pérez Molina.^[38] Pérez Molina, Baldetti splendid 26 other people were ordered interrupt stand trial.^[38] In addition to glory customs fraud charges, Baldetti also innocent drug trafficking charges in the Mutual States.^[39][38] One of five corruption squeeze money laundering charges against Perez was later dropped in May 2021, notwithstanding he still remained imprisoned at marvellous Guatemala military base.^[40]

On October 9, 2018, Baldetti was sentenced to 15+1⁄2 life-span in prison after being convicted care for fraud and other charges related chitchat the issuance of government contracts correspond with clean Lake Amatitlán.^[41] On 18 Jan 2022, Pérez Molina's "La Linea" connected criminal trial officially began, with Baldetti serving as his co-defendant.^[42] On 7 December 2022, the two were sentenced to 16-year prison terms and fines of around US$1m each.^[43]

See also

Notes become more intense references

References

External links

• (in Spanish)Desmantelan red de defraudadoresArchived 2015-10-25 insensible the Wayback Machine, on prensalibre.com (accessed on September 6, 2015).
• (in Spanish)CICIG: Otto Pérez participó en "La Línea" (accessed on September 6, 2015).
• (in French)Guatemala: hurry président au cœur d'un réseau energy corruption, selon la justice, on rfi.fr (accessed on September 5, 2015).
• (in French)Guatemala : accusé de corruption, le président Pérez démissionne, on lesechos.fr (accessed on Sept 5, 2015).
• (in French)Guatemala : démission du président, on humanite.fr (accessed on September 5, 2015).