In the wake of increasing calls for Vice President Roxana Baldetti to step down, President Pérez Molina announced on May 8 that the vice president would resign. At a press conference, Pérez Molina called the move a “personal decision” which reflects Baldett’s willingness to comply with any required investigations into a tax fraud scandal allegedly headed by her personal secretary.
Earlier this week, Guatemala’s Supreme Court ruled that Congress could revoke Baldett’s immunity from prosecution and that adequate evidence exists to warrant a pre-trial investigation. A request was presented by congressmember Amílcar Pop for both Baldetti and President Pérez Molina, though the request to investigate Pérez Molina was denied.
Guatemala’s business association, known by its Spanish acronym CACIF, also called publicly for Baldetti’s resignation on Wednesday, threatening to consider a national strike if Baldetti did not step down.
The scandal that prompted calls for Baldett’s resignation has been deemed “La Linea,” or “The Line,” in reference to a cell phone number that businesses could call to negotiate an illegal “discount” on the required customs taxes. According to a joint investigation by the CICIG and Guatemala’s Public Prosecutor’s Office, La Linea has resulted in the loss of 800-900 million quetzales ($106-$116 million).
19 members of the Guatemalan National Civil Police who are implicated in a case of the extrajudicial killing of 3 people have been detained. In early August of last year, 1,600 police were mobilized in response to protests in Alta Verapaz over an agreement signed between the mining company Hidro Santa Rita and President Otto Pérez Molina. The conflict resulted in dozens of arrests and injuries, as well as the deaths of the three people cited in the case.
Members of Congress, who are expected to vote this summer on Obama’s proposed $1 billion aid package to Central America, voiced concerns about the plan at a hearing last Thursday.
The main issues raised were “whether the leaders of the three countries have demonstrated enough commitment to curb corruption and address unemployment; whether the plan hits the right balance of addressing security, prosperity and governance; and whether it sufficiently addresses concerns raised about past development programs for the region.”
GHRC and other civil society organizations have also expressed urgent concerns about the proposed development plan for Central America.