Guatemala News Update: May 11-15

Guatemala Gets New VP in Wake of Tax Fraud Scandal

On May 14, Alejandro Maldonado was named as Guatemala’s new vice president following the resignation of Roxana Baldetti amid the revelation of a tax fraud scandal. On May 15, Erick Archila, head of Guatemala’s Ministry of Energy and Mines, also resigned due to what he called “political persecution.” Archila was summoned to appear this morning before a congressional commission investigating allegations of corruption against him, but refused to appear.

Meanwhile, citizens have continued to call for the resignation of President Otto Pérez Molina and will move forward with another wave of national protests set for Saturday, May 16.

In Washington, DC, the Mayan League is also organizing people to gather in front of the White House at 10 am in an expression of solidarity with the thousands in Guatemala demanding an end to corruption and impunity.

Guatemala Ex-police Chief Loses Appeal Against Life Sentence

Ex-police chief Erwin Sperisen’s attempt to appeal a life sentence has been struck down by a Swiss court. Sperisen — who also has Swiss nationality — was found guilyy last year in Switzerland of killing seven prisoners in a jail in his home country of Guatemala.

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 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.

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

Guatemala News Update: May 4-8: Vice President Baldetti Steps Down

Guatemala Vice President Steps Down Amid Customs Corruption Scandal

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 Police Officers Captured for Extrajudicial Execution

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.

US Congress Voices Concerns Over Central America Aid Plan

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.