HomeNewsBriefEx-President of Guatemala Facing More Corruption Charges
BRIEF

Ex-President of Guatemala Facing More Corruption Charges

ELITES AND CRIME / 3 JUN 2016 BY MIKE LASUSA EN

Authorities in Guatemala have accused jailed former President Otto Pérez Molina and his vice president in yet another illegal scheme, pointing to the depth and breadth of political corruption in the country's previous presidential administration.

The United Nations-backed International Commission against Impunity in Guatemala (Comisión Internacional Contra la Impunidad en Guatemala - CICIG) and the Guatemalan Attorney General's Office announced charges related to a massive illegal campaign finance network in a June 2 press release. More than two dozen suspects have been arrested, and several international arrest warrants have been issued in connection with the case.

According to an internationally supported investigation, Pérez Molina began the illicit campaign finance scheme after his losing presidential bid of 2007. From 2008 until the 2011 election, Pérez Molina and his soon-to-be vice president, Roxana Baldetti, allegedly created a network of companies headed by front men which laundered illicit campaign payments from businesses and individuals.

After Pérez Molina and Baldetti won the 2011 election, the investigation found, those who provided the illicit campaign funds were rewarded with favors from governmental entities. The investigation linked at least 450 state contracts to the criminal structure, and found that the illicit campaign financing amounted to at least 500 million quetzals, or about US$65.5 million.

Guatemalan authorities have previously tied Pérez Molina and Baldetti to two other major corruption schemes. One of these plots, known as "La Linea," involved companies paying bribes to customs officials in exchange for help avoiding import taxes. The other scandal involved allegations that Pérez Molina accepted bribes from a Spanish company in exchange for steering a major port development contract toward that firm.

InSight Crime Analysis

In addition to Pérez Molina and Baldetti, the illegal campaign finance network included several individuals whose names have also surfaced in connection with the other corruption investigations mentioned above. The new allegations against the former president and former vice-president suggest that they were not only personally involved in corrupt acts, but also that, in CICIG's words, they led a "criminal mafia structure that had co-opted power through the ballot box in Guatemala."   

SEE ALSO: Coverage of Elites and Organized Crime

The anti-corruption actions undertaken by CICIG and the Attorney General's Office have landed Pérez Molina and Baldetti in jail, and it appears that their criminal networks have been largely dismantled. But while the ongoing investigation and prosecution of suspects linked to political corruption during the previous presidential administration serve as signs of progress, Guatemala will undoubtedly face many challenges -- including financial constraints and judicial corruption -- as the country continues its fight against graft in the future. 

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

COLECTIVOS / 25 APR 2023

“They keep an eye on the transportation and the water. When something is damaged, they work with officials and fix…

COCAINE / 23 MAR 2022

The United States government has ramped up its pursuit of one of Guatemala’s most enduring drug clans – the so-called…

BOLIVIA / 4 FEB 2022

The US indictment of Bolivia's former anti-narcotics chief on drug and weapons charges means he could possibly be extradited to…

About InSight Crime

THE ORGANIZATION

InSight Crime's Chemical Precursor Report continues to be a reference in the region

19 MAY 2023

For the second week in a row, our investigation into the flow of precursor chemicals for the manufacture of synthetic drugs in Mexico has been cited by multiple regional media…

THE ORGANIZATION

InSight Crime’s Chemical Precursor Report Widely Cited

THE ORGANIZATION / 12 MAY 2023

We are proud to see that our recently published investigation into the supply chain of chemical precursors feeding Mexico’s synthetic drug production has been warmly received.

THE ORGANIZATION

InSight Crime’s Paraguay Election Coverage Draws Attention 

5 MAY 2023

InSight Crime looked at the various anti-organized crime policies proposed by the candidates in Paraguay’s presidential election, which was won on April 30 by Santiago Peña. Our pre-election coverage was cited…

THE ORGANIZATION

InSight Crime Cited in OAS, CARICOM Reports

28 APR 2023

This week, InSight Crime’s work was cited nine times in a new report by the Organization of American States (OAS) titled “The Impact of Organized Crime on Women,…

THE ORGANIZATION

InSight Crime Staff Cited as Experts by International Media

21 APR 2023

This week, InSight Crime deputy editor, Juan Diego Posada, was interviewed by the Associated Press about connections between the ex-FARC mafia and Brazilian criminal groups, and…