Guatemala News Update: August 17-24

Guatemala President Balks at Calls for Resignation

With just weeks until Guatemala’s general elections, public prosecutors and the CICIG revealed that they have uncovered enough evidence to place President Pérez Molina and former Vice President Roxana Baldetti at the top of a tax fraud scandal that has rocked the country since mid-April. Baldetti was arrested on August 21.

The announcement prompted another wave of resignations from government ministers; however, President Pérez Molina again rejected calls for his resignation in a public statement on Sunday.

Guatemalans Say Reforms Needed Before Any Future Election

In this opinion piece, GHRC Executive Director Kelsey Alford-Jones discusses Guatemala’s current political context, ponders what might happen next in the country, and explains the risks of moving forward with elections without much-needed reforms.

A related article also highlights the dismal conditions for holding Guatemala’s presidential election.

Doctors say Guatemala ex-dictator Rios Montt has dementia

On August 18, a team of medical evaluators ruled that Ríos Montt suffers from “incurable” dementia, a development which could prevent Montt from ever again facing trial. This was the final decision in a series of psychiatric evaluations of Montt that has delayed the trial for weeks. In a hearing is set for August 25, judges will decide whether or not the retrial will move forward. Continue reading

Guatemala News Update: June 22-26

Discovery of Suspected Congressional Corruption Network

Guatemala- AFP

Photo – AFP

Authorities opened an investigation on Thursday of a suspected network of ghost employees in Congress. Congressman Pedro Muadi has been linked to the alleged creation of 15 contracts of “ghost employees,” which are individuals recorded on a payroll system but who don’t actually work for that company or organization. It is believed that Congressman Muadi created these faulty contracts for security staff for a private company he owns. The CICIG requested the Supreme Court to carry out a pretrial investigation to remove Muadi’s immunity.

New York Times Op-Ed: “America’s Second Chance in Guatemala”

An Op-Ed by Anita Isaacs was featured in this week’s New York Times, in which Isaacs argues for more direct involvement by the US in Guatemala’s anti-corruption movement. Isaacs claims that the US has “turned its back” on hundreds of thousands of Guatemalans who have come together to demand the resignation of President Pérez Molina. She also argues that US officials, including Ambassador Todd Robinson, are manipulating the weakened political situation in Guatemala to pursue their own agenda. Isaacs expresses deep skepticism of Pérez Molina’s willingness to follow through on his commitments to carry out anti-corruption efforts. Continue reading

Guatemala News Update: May 25-29

One Year After Violent Eviction, La Puya Under Threat Again

On May 26, almost exactly one year after police violently broke up the peaceful anti-mining blockade at La Puya, approximately 300 police officials arrived again at the site. Police officials claimed that they were responding to an allegation that members of La Puya had illegally detained several mine works — an accusation that community members say is “totally false,” and that a justice of the peace could find no evidence to substantiate.

Police threatened to evict protesters, but lacked the required eviction order to forcefully remove them. While community members have let workers in to the mine and no longer block the road, a contingent of police remain, and a new police camp has been set up on company land right across from La Puya. Read more about recent events at La Puya on our blog.

Vice President Baldetti’s Properties Raided

On May 28, Guatemalan authorities and CICIG officials raided 14 properties associated with former Vice President Roxana Baldetti, whose press secretary has been linked to the tax fraud scandal that resulted in the resignation of several top Guatemalan officials earlier this month. Baldetti resigned on May 8 due to increasing public pressure, although she denies any involvement in the scandal. Continue reading

Guatemala Faces Political Crisis in Wake of Tax Fraud Scandal

*This post will be updated regularly (updates at the bottom) as the crisis unfolds in Guatemala

Today, May 14, Alejandro Maldonado was named as Guatemala’s new vice president after Roxana Baldetti resigned on May 8 amid the revelation of a tax fraud scandal. Meanwhile, despite the vice president’s resignation, citizens have continued to call for the resignation of President Otto Pérez Molina and will move forward with a wave of national protests set for Saturday, May 16.

What’s going on in Guatemala?

The uncovering of a corruption scandal has set off massive protests in Guatemala. Photo by Prensa Comunitaria.

The uncovering of a corruption scandal has set off massive protests in Guatemala. Photo by Prensa Comunitaria.

The uncovering of a massive tax fraud ring in Guatemala has prompted widespread public outrage, steeping the country in what many are calling a “political crisis” as September’s general elections draw near.

On April 16, authorities arrested 22 people – including the current and former heads of Guatemala’s tax collection agency – in the culmination of an 8-month long investigation into a criminal network used to defraud the state.

The crime ring was dismantled by a joint investigation by Guatemala’s Public Prosecutor’s Office and the CICIG, and implicates officials in the highest levels of government. Although Vice President Roxana Baldetti was not directly linked to the fraud ring in the initial investigation, she was plunged into controversy when her private secretary, Juan Carlos Monzón Rojas, was identified as its leader. In the face of increasing public pressure, Baldetti submitted her resignation on May 8.

The criminal network has been called “La Linea,” (The Line), in reference to a certain cell phone number that businesses used to illegally negotiate the amount they were required to pay in customs taxes. Thanks to the network, businesses received a 25% “discount” on the fees when their property cleared customs; approximately 50% was paid to the state and the rest to the defrauders. Prosecutors estimate that Guatemala lost around Q940 million (US$120 million) in tax revenue to the scam, and the ongoing investigation has begun to reveal corruption that extends to the judicial branch. Continue reading

Statement by the Human Rights Convergence on the Resignation of Vice President Baldetti

On May 10, 2015, the Human Rights Convergence released a statement on the resignation of Vice President Roxana Baldetti. (Full text in Spanish available below).

On April 16, the criminal ring “La Linea,” allegedly headed by Juan Carlos Monzon — private secretary of the then vice-president Roxana Baldetti — was uncovered. The magnitude of the fraud and the organization of the ring, which profited off the state’s tax system, presumes previous knowledge and personal gain on the part of the vice-president. This knowledge prompted Guatemalan society to demand Baldetti’s resignation.

In light of these events, the Convergence wishes to express its support to those who are mobilizing to demand an end to state corruption, as well as for the ongoing work of the CICIG. The Convergence also wishes to stress the need for investigations into the integrity of the justice system, as well as the candidates for the vice-presidency.


ANTE LA RENUNCIA DE ROXANA BALDETTI ELIAS A LA VICEPRESIDENCIA DE LA REPÚBLICA, LA CONVERGENCIA POR LOS DERECHOS HUMANOS, EXPONE

Por la Convergencia por los Derechos Humanos

1) El 16 de abril fue el inicio del desmantelamiento de una estructura criminal que utilizó el sistema aduanero y de recaudación tributaria para esquilmar recursos del erario y enriquecerse ilícitamente. Además del jefe de la Superintendencia de Administración Tributaria (SAT), así como su antecesor, la investigación identificó al militar retirado Juan Carlos Monzón, secretario privado de la vicepresidencia, como el cabecilla de la banda.

2) La magnitud de lo defraudado y el esquema funcional de la banda denominada “La Línea”, permiten inferir que la entonces vicemandataria no era ajena ni a la estructura ni a los beneficios de la misma. De allí que, desde el inicio la sociedad guatemalteca demandara la separación del cargo de la señora Baldetti Elías, a fin de facilitar la investigación y la acción judicial independiente.

3) La forma y el mecanismo en que la jueza contralora liberó mediante medida sustitutiva a los únicos cabecillas detenidos, puso de relieve que el pacto por la impunidad, suscrito entre el entorno económico-oligárquico-militar y los partidos Patriota y Libertad Democrática Renovada (Líder), daba sus frutos.

4) Desde un inicio el clamor social en diversos aspectos planteó la demanda de la renuncia, misma que fue presentada por la señora Baldetti, tres semanas después de los sucesos y luego de haber facilitado incluso, la fuga de su secretario.

5) Si no hubiese habido presión social, ningún otro sector se habría sentido obligado a requerir la renuncia hoy producida que deja al Congreso la responsabilidad de aceptarla y designar a un sustituto o sustituta de la ex vicemandataria. Así como deja en manos del sistema de justicia la oportunidad de reivindicarse y concretar el proceso de persecución penal con independencia.

6) Este proceso no habría sido posible sin dos factores fundamentales. En primer lugar, la inobjenetable investigación conducida por la Comisión Internacional Contra la Impunidad en Guatemala (CICIG), desde hace más de año y medio. En segundo lugar, la persistente, digna y masiva movilización ciudadana en todo el país, en particular en la ciudad capital.

Por todo lo anterior, la Convergencia por los Derechos Humanos:

1) Saluda la demanda ciudadana por limpiar de corrupción y corruptos al aparato de Estado en todos los niveles, así como a las muestras de resistencia.

2) Felicita la investigación y acciones de la CICIG, a la vez que manifiesta su respaldo a las diligencias que aún habrá de emprender.

3) Dadas la condiciones en las que se ha desarrollado el caso judicial contra la Red “la línea” se hace necesario que la CICIG, el Ministerio Público y el Organismo Judicial den paso a una amplia investigación de operadores de justicia implicados en casos de corrupción y procuración de impunidad y con ello la persecución penal correspondiente.

4) Demanda del Congreso de la República resolver a la brevedad la sustitución de la vicepresidenta y evaluar con detenimiento y sin arreglos bajo la mesa, las cualidades de quienes aspiren a sucederla.

5) Respalda las convocatorias sociales y ciudadanas para continuar en el reclamo de depuración del sistema político y de justicia y llama a todos los sectores a acuerpar la demanda social de renovación plena del Estado, que modifique las condiciones institucionales y legales que permiten el modelo clientelar, corrupto e impune sobre el que se basa el funcionamiento de la Red hoy puesta al descubierto.

Guatemala, 10 de mayo de 2015
II Aniversario de la condena por genocidio