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News > Latin America

Guatemala: Former Government Heavyweights Arrested in Fraud Scandal

  • A woman carries a candle during a march to protest government corruption in Guatemala City on July 4, 2015.

    A woman carries a candle during a march to protest government corruption in Guatemala City on July 4, 2015. | Photo: EFE

Published 10 July 2015
Opinion

The arrests and new details of government corruption emerge as President Perez Molina reiterates he has no intention to resign.

In another blow to the Guatemalan government, amid the ongoing corruption scandal embroiling President Otto Perez Molina, authorities have detained a former top presidential aide and several others for fraud as investigations reveal new details of corruption.

The U.N. anti-impunity body in Guatemala known as CICIG has accused former Secretary General Gustavo Martinez and several other current and former government officials, from institutions including the ministry of energy and the tax authority, of participating in influence peddling networks and benefiting economically from bribes.

“Ex-minister of energy and mines and former private secretary of the president captured.”

According to CICIG's investigation, Martinez exploited his close relationship with the president for economic benefit, such as scheduling urgent meetings in exchange for bribes.

Martinez and the head of the fraud network he has been linked to acquired at least US$120,000 though such bribes from various companies, such as Jaguar Energy, which is currently developing in Guatemala one of the largest energy projects in Latin America.

“Gustavo Marinez, former secretary general of the president, scheduled appointments on the presidential agenda to help Jaguar Energy.”

Martinez stepped down in June in response to allegations of corruption, after the media probed his wealth and a huge property acquisition. Martinez, who is the fiancee of President Perez Molina's daughter, described his resignation as a move to shield the president, who now also faces heightened anti-impunity scrutiny after being stripped of immunity from trial.

The new arrests and details of corruption follow a wave of government fraud scandals being unearthed, including massive corruption and embezzlement schemes in the country's tax authority and social security institute.

“We are currently on a crusade to combat corruption, so it is a favorable opportunity for the community as a whole to present allegations of criminal acts. It is the opportunity for the country to decisively face the fight against corruption.” – CICIG Commissioner Ivan Velasquez

As corruption swirls around the government, President Perez Molina has reiterated that he will not resign, despite two months of protests calling for him to step down and a recent recommendation to strip him of presidential immunity to allow him to face trial for corruption. The vote on the recommendation in Congress remains pending.

RELATED: Marches in Guatemala Mark Historical Moment

“I'm not going to resign. I am going to continue in this struggle,” said Perez Molina during a meeting about U.S. security for Central America on Wednesday with U.S. officials, including Department of State Councilor Thomas Shannon. “Although my immunity is withdrawn, I will comply with what the law says. I have nothing to hide.”

Guatemala's political turmoil comes just months before general elections are set to take place this September. Perez Molina, whose presidential term expires in January 2016, is legally barred from running for a second term.

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