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An anti-impunity body in Guatemala has shed further light on the country's recent corruption scandals, revealing information on the structure of and division of profits within the customs fraud network known as La Linea, Guatemala's Prensa Libre reported.
The International Commission Against Impunity in Guatemala, known as CICIG, obtained documents detailing how the customs fraud ring, including internal Tax Authority personnel and external members, took control of charging companies bribes on imported products. Wiretap data has also been key in unraveling the network's structure and operations.
Seized documents reveal that between just two days in October 2014, the Tax Authority received about US$156,000, while the fraud network scooped close to US$72,000.
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#CasoLaLinea : Juez confirma prisión preventiva a sindicados. http://t.co/0eRkg5PJ2q pic.twitter.com/sS3rHm35bz
— CICIG Guatemala (@CICIGgt)
June 5, 2015
“La Linea Case: Judge confirms preventative detention for accused members.”
While Juan Carlos Monzon, the former private secretary of resigned Vice President Roxana Baldetti, is known to be La Linea's key ringleader, the investigation has found media consortium figure Salvador Gonzalez responsible for receiving and distributing cash to the network.
La Linea operated with four separate bank accounts used to deposit and promptly withdraw large sums of money. All four accounts are currently empty. Ringleaders determined the percentage of earnings allocated to each member.
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According to CICIG, 15 accused customs fraud network members, including both Tax Authority employees and external members, will remain in custody on charges of criminal association.
The top leader behind the scheme, Monzon ,still remains at large.
Meanwhile, a governmental reshuffle continues as former Minister of Labor Carlos Contreras has been appointed as the new head of Social Security Institute, whose former head and former presidential aide Juan de Dios Rodriguez was detained for allegations of fraud last month.
The new appointment has been criticized for simply rearranging an administration that has already been widely condemned as corrupt. It points to an unwillingness to appoint officials from outside Perez Molina's government and a lack of commitment to significant change.
Adivinen quien va a pagar el hueveo del #CasoLaLínea #IGSS y demás? #JusticiaYa #RenunciaYaOPM pic.twitter.com/EX0acZQxv0
— Bofe de Gato (@Pellejoprepucio)
June 5, 2015
“Guess who is going to pay for the mess of the La Linea Case, Social Security Institute, and the rest?” Image: “Pay attention son, because you’re going to pay (for debt, deficit, bailout).”
Contreras was among the top three candidates President Perez Molina proposed to replace former Vice President Roxana Baldetti after she resigned amid a corruption scandal, but Conteras was ruled out based on legal questions, according to Prensa Libre.
Contreras has stated that his first act within the Social Security Institute will be to undertake an audit of process and services. A similar proposal was made by his predecessor Rodriguez, now implicated in a US$14.5 million corruption scandal, upon his 2013 appointment.
The popular “Resign Now” movement continues to call for the immediate resignation of President Perez Molina, with continued peaceful protests planned for next week.
Otto Pérez Molina es el 1er presidente que pasará a la historia por tener un nivel de popularidad por debajo del 0. #VeQueCerote #RenunciaYa
— Nelton Rivera (@NeltonE)
June 5, 2015
“Otto Perez Molina is the first president who will go down in history for having a popularity level below zero.”
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