HomeNewsBriefGuatemala's ‘Dollar Boy’ Says He Paid Politicians Hefty Bribes
BRIEF

Guatemala's ‘Dollar Boy’ Says He Paid Politicians Hefty Bribes

ELITES AND CRIME / 18 MAY 2016 BY MIMI YAGOUB EN

A businessman in Guatemala claims he paid hundreds of thousands of dollars in bribes to buy the silence of top politicians, as a high-reaching money laundering investigation continues to unfold.

During a May 16 hearing on the money laundering case, jailed businessman Francisco Morales Guerra, alias "Chico Dólar," or Dollar Boy, testified against former congressmen Jaime Martínez Lohayza and Manuel Barquín Durán, and the latter's brother, lawyer and former vice-presidential candidate Édgar Barquín Durán, Crónica reported.

Morales told the hearing he gave the three men nearly $400,000 (3 million quetzales) "to not be denounced."

Morales, Martínez and the Barquín brothers are accused of forming a money laundering network that allegedly handled around $122.7 million (937 million quetzales) in drug money, while also funding political campaigns, Prensa Libre reported. Morales allegedly led the network which functioned from 2008 to 2011.

SEE ALSO:  Elites and Organized Crime: Introduction

Morales told the hearing he had been threatened and feared for his life, asking that security measures be put in place for him and his family. He said the Barquín brothers, Martínez and another lawyer should be held responsible if anything happen to him, Publinews reported.

Édgar Barquín -- the former director of Guatemala's state bank -- denied Morales' claims.

"I did not threaten him," Barquín told Publinews. "His testimony … is confusing to me."

Morales told the judge that he had never laundered money, but had legally traded in currency, Publinews reported.

16-05-17-Chico-dolar500px

A graphic from elPeriódico detailing Morales' money laundering network, based on information from investigators

InSight Crime Analysis

This large-scale money laundering network was dismantled in 2015 as part of the "Laundering and Politics" investigation led by the Attorney General's Office and the UN-backed International Commission against Impunity in Guatemala (CICIG).

According to CICIG's report on the case, the network collected large amounts of hard cash -- mainly dollars -- which Morales would introduce into the financial system through approximately 200 fake businesses and frontmen. The money was then wired to foreign bank accounts, disguised as commercial transactions.

Investigators say the illegal network was protected by powerful elites. Bank of Guatemala Director Édgar Barquín allegedly shielded Morales from investigation, while his brother used his own offices and assistants in congress to support Morales' activities.

In return, Morales is said to have funded political activities, including Martínez's 2011 run for congress.

SEE ALSO:  Guatemala News and Profiles

Gross abuse of power to further criminal interests is an all too common feature of Guatemalan politics. The unveiling of this corruption reached the highest levels late last year, when the president and vice president were both imprisoned for allegedly running a criminal ring that embezzled millions in state funds through a system of customs fraud.

High-reaching judicial feats such as these might have been unimaginable before CICIG -- which carries out independent investigations -- began its mission against deep-rooted government corruption.

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

CARIBBEAN / 11 FEB 2022

Latin American countries scored poorly on Transparency International’s latest corruption index, with the worst joining the ranks of war-torn nations…

ELITES AND CRIME / 30 SEP 2022

A number of scandals involving officials within the government have raised concerns about rising corruption in Uruguay.

ELITES AND CRIME / 7 SEP 2021

The visual is an arresting one. A Venezuelan army sergeant, his face swollen and his nose bleeding from a beating,…

About InSight Crime

THE ORGANIZATION

InSight Crime's Chemical Precursor Report Continues

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…