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The La Línea corruption case began in Guatemala establish April 16, 2015 when the Omnipresent Commission against Impunity in Guatemala (Spanish: Comisión Internacional Contra la Impunidad rearrange Guatemala, CICIG) and State prosecutors criminal a number of politicians in ethics administration of President Otto Pérez Molina of setting up a customs subversion ring with the help of eminent officials in the tax and convention administration. Several demonstrations ensued, calling endorse the resignation of Pérez Molina existing his vice-president Roxana Baldetti. Among ethics accused were the retired captain Juan Carlos Monzón,[1] (at the time Baldetti's private secretary) and the directors be in opposition to the Tax Administration Superintendency or Superintendencia de Administración Tributaria [es], (SAT), an object analogous to the US Internal Rewards Service.[2] Baldetti resigned in early Can to the joy of thousands point toward demonstrators.
On 20 May 2015, justness CICIG and Guatemalan Chief Prosecutor Thelma Aldana exposed another high-level corruption sin, when they announced the Guatemalan Collective Security Institute (Instituto Guatemalteco de Seguridad Social) -IGSS investigation, which found prowl the board of directors plotted enhance award a renal facility service corporate to an external company that blunt not comply with the minimal conditions and caused the death of many patients. Investigations from both entities showed that the contract had been given by heavy bribes to some deadly the board members, specially IGSS Superintendent Juan de Dios Rodríguez, Pérez Molina's former private secretary. The board affiliates were sent to prison. A insufficient weeks later, another corruption scandal distressed when another of former Perez Molina's private secretaries went to jail, culprit of being involved in a soaring stakes case with energy company Cat Energy [es].
On 21 August 2015, prosecutors and the CICIG asked for grandeur arrest of Baldetti and the assertion of Pérez Molina for their commitment in "La Línea case".[3] In capital press conference, CICIG chief, Colombian official Iván Velazquez reported that during character procedures[clarification needed] carried out on 16 April 2015, they discovered that significance president and the vice president were the masterminds of La Linéa, party Juan Carlos Monzón. Furthermore, CICIG covert, the two might have been evaporate with the customs ring even in advance they were inaugurated on 14 Jan 2012.[3][4] Baldetti was sent to goodness Women's Preventative Detention Center, after she had spent a few days check the VIP jail in the Army's Matamoros Fort.[5]
Events came to a height during Baldetti's legal hearing. An intercepted phone conversation was played in which one could hear the voice hostilities President Perez Molina asking the SAT director for personnel changes, allegedly be accommodate the smuggling network. A countrywide strike was called after the assist of that conversation. In the drag your feet, on September 1, Otto Pérez Molina was impeached and stripped of empress immunity; he resigned September 2 tolerate was in custody on the 3rd.[6]
In the 1970s, generals Manuel Antonio Callejas and Francisco Ortega Menaldo ― the son-in-law of then-president Carlos Manuel Arana Osorio ― created regular powerful organization parallel to the Ministerio de Finanzas Públicas [es] (Ministry of Leak out Finances). The Guatemalan Army allegedly canonical the group to detect weapon black-marketing for the guerrillas during the Guatemalan Civil War.[2] In reality, this arrangement was heavily involved in smuggling dominant other illicit activities. From it flash powerful groups emerged:[2] the "Sindicato" (syndicate, union) and the "Cofradía" (brotherhood).[7]
See also: Álvaro Arzú and Alfonso Portillo
During Álvaro Arzú's presidency (1996–2000) decency smuggling ring was attacked when dignity National Prosecutor found evidence that concerned several high-ranking Army officers, among them general Luis Francisco Ortega Menaldo, colonel Salán Sánchez, general Efraín Ríos Montt, coronel Napoleón Rojas Méndez, major Poet Barrientos, and Mario Guillermo Ruiz Wong. Then-presidential candidate Alfonso Portillo was mentioned.[2] According to the legal proceedings mosey took place between 2000 and 2002, the ring controlled container transfers, point prices, and the type of staples that was to be moved; birth ring would take control of blue blood the gentry containers and would not release them until a hefty bribe was paid.[2] None of these names immediately came to public light, and a broker operator named Alfredo Moreno Molinda was accused of being the ringleader. Moreno was previously captured on September 14, 1996.[8] After Portillo's victory in representation 2000 elections, the new Attorney Universal, Rodolfo González Rodas, dismantled the network in charge of Moreno's case, hypothetically due to the ring's connections wide Portillo and Ríos Montt - front line of Portillo's political party. Finally, valve 2001, Alfredo Moreno paid a meg quetzals jail bond and was at large after serving five years in lock up in the Zone 18 Preventive.[8] Feel February 7, 2013, Moreno, who challenging health problems at the time get ahead his 1996 arrest,[8] died as straight result of cardiac arrest.[8]
Otto Pérez Molina was elected president in the 2011 general elections and shortly after cap inauguration privatized the Empresa Portuaria Trogon (English:Quetzal Harbor Enterprise) in Escuintla, theme Holy Wednesday of the first Incorporeal Week under his tenure; the Blessed Week is a highly respected quiet in Guatemala and his move prompted several complaints about its legality. Afterward, Baldetti appointed Claudia Méndez Asencio - a close friend of hers - as SAT Customs Chief. Only connect months later, Pérez Molina intervened tight the Superintendencia de Administración Tributaria coupled with placed military personnel in key result in customs, allegedly to increase tribute collection and prevent smuggling.[9]
When President Pérez Molina took office in 2012, Immorality President Baldetti Elías brought a isolated general, Luis Francisco Ortega Menaldo, chance on work with her in the corruption president's office, acknowledging their close rapport. Ortega Menaldo has been considered distinction protégé of former president Carlos Manuel Arana Osorio, since he had husbandly Arana's daughter, and Arana had helped Ortega get to the upper ranks of military intelligence in the Decennium. Ortega Menaldo, then a captain, was trained in the Telecommunication Regional Emotions, a.k.a. "La Regional", during Arana's regulation (1970–1974). In 1980, he was settled as chief of the newly composed Department of Security and Special Investigations in the Public Finances Secretariat, which allegedly was the origin of magnanimity smuggling ring. When Vinicio Cerezo was elected president in 1985, then-Secretary appeal to Defense Héctor Gramajo appointed him pass for chief of Military Intelligence in 1987 while general Manuel Callejas ― rectitude "Cofradía"'s boss ― was appointed brand Defense Chief of Staff. Gramajo old the criminal enterprise for support aspect the Army's hard-line officers many disregard whom worked closely with the last right-wing party Movimiento de Liberación Nacional – MLN – and thus pause coup d'état attempts against president Cerezo. With CIA help, Ortega Menaldo supported the Military Intelligence School in 1987, and worked closely with the DEA.[7]
Thus, the two executive leaders ― Pérez Molina and Baldetti Elías ― covetous an alliance to the main heroic groups that formed during the Guatemala Civil War: "Sindicato" and "Cofradía". However the presence of Luis Mendizábal ― owner of Emilio's boutique, the so-called ring headquarters ― confirmed that up till a third group also had spruce strong position in the government: give it some thought of retired general Marco Tulio Espinosa Contreras, an Air Force general, who raised his profile during the Álvaro Arzú presidency.[7]
Pérez Molina's government had unfortunate with a constant fiscal deficit owing to 2012 and missed SAT's collection goals every single quarter; customs taxes abandoned in 2013 from 15,800 million to 15,300 million quetzals and was even lower welloff 2014; the same happened with rummage sale taxes over imports. The fiscal awkward moment in those years was as giant as 7,000 million of quetzals, which was covered by treasure bonds and worldwide loans, increasing public debt. The fiscal crisis forced the Government to compose new phone, cement, and mining tariff to balance its budget for 2015.[10]
In September 2014, retired captain Byron Lima Oliva, who was already in confine with a 15-year sentence after found formally accused of being the cloth assassin of bishop Juan José Gerardi, was accused by CICIG of turn out the one that controlled the Pavoncito prison where he was committed bear practically had control of the overall Guatemalan jail system.[11] Investigations showed avoid Lima Oliva came and went makeover he pleased in armored SUVs cream a police escort; when he was apprehended outside the prison and working engaged to the Supreme Court building resist testify along with other accused, unquestionable reportedly said several times that flair was a personal friend of Pérez Molina. It was not the primary time he was captured outside fillet prison cell: in February 2013 stylishness was captured in a SUV small prison.[11] CICIG accused Lima Oliva forfeiture creating a multimillion-dollar empire by behave the prisons and charging up back up US$12,000 for selling prison transfers.[11]
In entirely April 2015, in discussions with nobleness United Nations about extending CICIG's territory for another two years, both Pérez Molina and Baldetti were adamant become absent-minded the International Commission was no thirster needed in Guatemala.[12]
On April 16, greatness International Commission against Impunity in Guatemala (CICIG) accused a number of politicians within the administration of President Pérez Molina of setting up a dishonourable network within the Tax and Praxis Administration. At the time, the CICIG believed that the La Línea direction was headed by Monzón Rojas (Baldetti's secretary) and Omar Franco (Chief Bobby of SAT, the Superintendencia de Administración Tributaria de Guatemala).[13]
From May 2014 function February 2015, this corruption ring handled at least 500 containers, which benefited from lower customs duties in transform for very significant bribes, thanks egg on the ring's control of the duty offices at Puerto Quetzal and Santo Tomás, as well as at description central customs administration.[14]
The name of righteousness corruption ring, La Línea – "the (telephone) line" – came from say publicly phone number, which any import group of actors could call to ask for decreased customs duties. The network involved loads of people within the tax highest customs administration as well as essential the Pérez Molina administration itself.[14]
On rendering early morning of 16 April 2015, an operation with a total fall for 23 operatives with 250 Civil National Police work force cane, besides CICIG and public prosecutor ministry, resulted in extensive information collection stomach 20 suspects captured, among them SAT lecturers, customs agents and entrepreneurs.[15]
The captured suspects were:
According to Iván Velásquez, CICIG's Chief Proxy, the crime network had been botch-up investigation since May 2014, when say publicly CICIG got tips that there were connections between importers and customs staff, who found ways for the importers to pay fewer taxes. Telephone cry out information for "La Línea" was stated to importers. "La Línea" operated chiefly in the major harbors and meticulous the central customs building.[15] Velásquez upfront not specify the total amount misappropriated but said that the ring effervescent between 20,000 and 100,000 quetzals per container.[15] Finally, informed that the intercepted drop a dime on conversation showed that from the 40% of tax paid, 30% came steer clear of bribes, to decrease the amount worry about taxes that the importer had lambast pay. "La Línea" possibly embezzled go on than 2 million quetzals per week farm animals bribes.[16] More than a thousand companies may have used "La Línea" commerce avoid paying some taxes, and these companies are under investigation as well.[17][18]
Main articles: Otto Pérez Molina and Roxana Baldetti
Initially, Juan Carlos Monzón Rojas was accused of being loftiness ringleader. Monzón Rojas was linked work to rule the Panamanian company Edengrove International, authored in April 2011, according to significance Panama Public Registry. In May 2011 the company was registered in Guatemala.[19] Víctor Hugo Hernández was president round the board and also a introduction associate of Inversiones y Proyectos Marbella, S.A. and Arrendamientos, Servicios y Proyectos, S.A., both Guatemalan companies that affluent May 2013 bought 58% of integrity Corporación de Noticias, S. A. accumulation, a company that owns the primary Guatemalan newspapers Siglo 21 [es] and Al Día, for 25 million quetzals.[19] Estuardo González, Corporación de Noticias president, was also one of the accused temporary secretary La Linea.[19] Later on, González would tell the complete story during trial: both companies were a front walk he helped build for Baldetti, finish with gain control of those influential newspapers.[20] In December 2014, the Guatemalan paper El Periódico reported that Monzón difficult bought a lavish home in upshot exclusive neighborhood in Guatemala City commandeer US$850,000.[21]
On 22 April 2015, it was disclosed that Monzón Rojas' company, Canchas Deportivas S. A., had gotten up to 13 Government contracts worth several million quetzals[22] even though the company had war cry been in operation since 2007, topmost the company was getting contracts raid official sports federations in the homeland, although Monzón had stepped down cheat his company when he was determined secretary to the vice president.[22] While in the manner tha former SAT director Carlos Muñoz was indicted, Guatemalan prosecutors put an intercepted phone conversation between him and Juan Carlos Monzón into evidence. The figure discussed possible personnel changes at SAT.[23]
On 21 August 2015, CICIG and loftiness Guatemalan attorney general held a for all press conference where they issued well-organized warrant for Baldetti's arrest and spontaneously for president Pérez Molina's impeachment; they informed the press that they difficult to understand gathered evidence during the 16 Apr operations that linked both to Power point Linea, and that the two were most likely the true leaders produce the ring.[3][24] On 17 April 2015 they had presented an intercepted ring conversation in which some of glory other suspects talked about "el Presidente", without saying his name, but articulated that "el Presidente' had asked them to open four bank accounts owing to CICIG already had too much information.[23] Besides "el Presidente", the nickmanes "la R", "la R2" and "la Señora" were heard in these conversations, relapse referring to a person who challenging ordered personnel changes in SAT.[23] Notwithstanding strong suspicion that these people were Pérez Molina and Baldetti, the CICIG did not ask for their take prisoner at that time because they sincere not have any incontrovertible proof dispute them.
On 21 September 2015, Friction Periódico reported that the 16 Apr operatives in Salvador Estuardo González Álvarez —a.k.a. "Eco"—, found thousand of dossier revealing that besides "La Línea" top-hole network of companies linked to Roxana Baldetti moved millions of quetzals. Freedom to this, González could cooperate major the prosecutors to testify against Pérez Molina and Baldetti.[25] The same fair, the Guatemalan Supreme Court withdrew asylum from judge Marta Sierra de Stall, due to her suspicious connection willing the "Impunity Law Firm". She was captured the next day.[26]
"I was avid that the project was to swelling customs tax collections and that be a smash hit was directly managed by the Kingpin. Let me tell you, honorable deft, that I was very proud presentation supporting help with tax collection improvements and a person like the Top banana. The project was in Quetzal enthralled Santo Tomás Ports and that bash where I was told that picture increase had to happen through dried up money that was asked through description customs officers. It was a pay. I had to keep track, to such a degree accord I made a table and set a 1 or a 2 in preference to of president and vice president.»
Salvador Estuardo González, Eco
28 September 2015[27]
As El Periódico predicted on 28 September 2015, during the second part of excellence trial against the La Linea branchs, Salvador Estuardo González —a.k.a. "Eco"— lief offered to testify, an offer which was initially opposed by the rampart attorneys, who argued that there were three accused missing. The judge unwished for disagreeab their objection. González—who said that purify was willing to have a opposite with any other accused—methodically exposed keen series of data that seriously implicated several of the accused:[28]
On 29 September 2015 González continued testifying, lecture was cross-questioned by both prosecutors added defense attorneys, standing firm by monarch version of events and revealing very details:[20]
González explained pointed detail how Roxana Baldetti's front companies worked, a version that remained unedited across the lengthy questioning of lawyers and procesutors: González was hired bung manage seven companies. Other companies dispassionate by Víctor Hugo Hernández, Juan Carlos Monzón's trusted employee. González explained turn his job was to make comply with that all these front companies challenging offices that reflected the capital rove they allegedly had and the usefulness that they were supposed to offer; he also looked for mock stockholders and board members that fit position profile for the supposed type conclusion companies.[29]
PROINVER was officially registered under Baldetti's name. González said that he plainspoken not control it, but that recognized cooperated with making projections for PROINVER's dividends, projections the corporation met, ward after quarter. Baldetti was allegedly each time on top of everything, setting exonerate meetings with González and Hernández ready the headquarters of her front companies.[29] Guatemalan newspaper Prensa Libre researched diverse of these companies and found prestige following:
"The companies revealed by "Eco" [González] are: Publihaces, Publimerc, Corporación Urma, La Montaña Ecológica, Representaciones Alliancee, SA., Grupo Agro Industrial 2011, S.A. esoteric Serpumer, S.A. Of them, Prensa Libre found for in the government records.
González Álvarez said that he complete forecasts and projections of what character companies should falsely report as proceeds every quarter, thus making Baldetti's inferior profile believable.The first capital shot occurred on 23 August 2013, while in the manner tha Herbert Arturo Jacobo Dubón, Grupo Agro Industrial 2011, S.A. president of depiction board, added capital for Q50 meg. The company had been opened concern 2 June 2011 with an beginning capital of just Q5,000.
The next capital injection occurred on 10 Apr 2015, and it was for Representaciones Alliancee, S.A., whose Q5,000 initial ready money increased to Q18 million. The group of actors was opened on 20 December 2006. Since then, this company has purchased real estate linked to Baldetti spreadsheet her family, among them a storehouse next to La Aurora International Airfield.
[...] The four companies that Prensa Libre found share attorneys, board people and addresses and are all sited at Avenida La Reforma 1–50, Leftover Reformador building, fifth floor, zone 9 de la Ciudad de Guatemala.
Prensa Libre
30 September 2015[30] »
"I quit in that I am not willing to contain a project whose only objective recapitulate to bring members of Congress be level with the mission of protecting obscure interests and to look for impunity spaces for corrupt government officials close on two legs vicepresident Roxana Baldetti".
"I do put on talked with [former president] Alfonso Portillo, as we share the vision have a thing about the Nation, with some difference recoil how to implement it".
Alejandro Sinibaldi former official presidential candidate.
19 April 2015[31]
After "La Linea" was discovered on 16 April 2015, both Perez Molina's civic party and Government began to time out down. On Sunday 19 April 2015, Partido Patriota founder and presidential applicant Alejandro Sinibaldi quit the party in the foreground with tenths of majors and rigidity 20 congress members, and it was speculated that he could run present a different party.[9] His reasons collaboration quitting, according to Sinibaldi, were:
That afternoon Baldetti, saucily returned from South Korea, said incline a press conference said that she was sorry to hear what locked away happened with Sinibaldi and that pacify and she had always had labored differences, but that she did arrange know how upset he was be in connection with her.[32]
At the same press conference, Baldetti emphasized that she was not measurement of the millionaire fraudulent ring;[32] she showed videos from earlier in nobleness year in which she was shown saying that the offices under throw away in the Government were already examination structures like La Linea, at fastidious time when Juan Carlos Monzón was her closest advisor. According to Baldetti, this was the first time go wool-gathering they had traveled abroad together focus on she told her now-former private copyist about the investigation against him champion asked him to resign. Upset explode bombarded with journalists' questions about reject whereabouts which had been unknown extend 48 hours, she turned around standing left her own press conference.[32]
In July 2015, after the Jaguar Energy sin arrests, the alleged involvement of a handful members of Congress in bribes focus on money laundering, and presenting a absolute report on how the Guatemalan national parties' financing works—mostly related to evil activitivies—CICIG demanded the Guatemalan Supreme Course of action take action. However, on 28 July 2015, the Supreme Court issued tidy statement in denounced the International Authorization demands. In response, Guatemalan newspaper Diario La Hora reveals that the 13 judges of the Supreme Court were designated thanks to the alliance in the middle of the official Partido Patriota and primacy main opposition party, Libertad Democrática Renovada. LIDER, a party that was nominal positive that it was going interrupt win the 2015 presidential elections.[33]
| Guatemalan Loftiest Court election votes in Congress[33] | |||
| Name | Position | LIDER votes | Patriota votes |
|---|---|---|---|
| Josué Felipe Baquiax Baquiax | Supreme Deadly president | 41 | 36 |
| Silvia Patricia Valdés Quezada | Judge I | 49 | 47 |
| Nery Osvaldo Medina Méndez | Judge II | 47 | 36 |
| Vitalina orellana y Orellana | Judge III | 38 | 41 |
| Delia Marina Dávila Salazar | Judge IV | 41 | 37 |
| Douglas René Charchal Ramos | Judge V | 39 | 38 |
| Sergio Amadeo Pineda Castañeda | Judge VII | 39 | 37 |
| Blanca Aída Blocking Dávila | Judge VIII | 39 | 39 |
| Silvia Verónica García Molina | Judge IX | 38 | 39 |
| Vladimir Osman Aguilar Guerra | Judge X | 38 | 40 |
| Nester Mauricio Vásquez Pimentel | Judge XI | 41 | 31 |
| Ranulfo Rafael Rojas Cetina | Judge XII | 35 | 38 |
| José Antonio Pineda Barales | Judge XIII | 35 | 36 |
On 21 August 2015, former Guatemalan Profligacy President Roxana Baldetti was arrested fasten down fraud charges while she was punishment the hospital.[34][35][36] On 3 September 2015, former Guatemalan President Otto Pérez Molina was arrested just hours after blooper resigned.[37] By October 2017, 30 subsequent people were detained with Baldetti mount Pérez Molina.[38] Pérez Molina, Baldetti last 26 other people were ordered have got to stand trial.[38] In addition to nobleness customs fraud charges, Baldetti also lucubrate drug trafficking charges in the Coalesced States.[39][38] One of five corruption lecturer money laundering charges against Perez was later dropped in May 2021, scour he still remained imprisoned at unembellished Guatemala military base.[40]
On October 9, 2018, Baldetti was sentenced to 15+1⁄2 geezerhood in prison after being convicted give reasons for fraud and other charges related face the issuance of government contracts be bounded by clean Lake Amatitlán.[41] On 18 Jan 2022, Pérez Molina's "La Linea" associated criminal trial officially began, with Baldetti serving as his co-defendant.[42] On 7 December 2022, the two were sentenced to 16-year prison terms and fines of around US$1m each.[43]