Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Wednesday, December 09, 2015

Has Guatemala's Long-Awaited Spring Finally Arrived?


Has Guatemala's Long-Awaited Spring Finally Arrived?

By Michael Deibert

When former comedian Jimmy Morales was elected as Guatemala’s president as the candidate for the Frente de Convergencia Nacional (FCN) this past October, his victory came at the conclusion of perhaps the most tumultuous few weeks the country has seen since the end of its 30-year civil war in 1996.

Central America’s most populous country and its largest economy, Guatemala has often been the called the Land of Eternal Spring due to its temperate highland climate. By the 1980s, in the middle of a three decade long civil war, some added “Land of Eternal Tyranny” to the description in reference to its long list of sanguinary military governments.

In the 20 years since then, Guatemalans have enjoyed democracy, of a sort. Elections were held on schedule and with regularity, and an alternating series of civilian presidents from political parties of various ideological stripes have all taken their turn in steering the ship of state. Violence and corruption, often with official complicity, however, have continued to darken the country’s political landscape, often coupled with a pervasive and corrosive impunity benefiting those perpetuating it.

Following the 1996 peace accords, Presidents Álvaro Arzú of the Partido de Avanzada Nacional and his successor, Alfonso Portillo of the Frente Republicano Guatemalteco (of former dictator Efraín Ríos Montt, who presided over some of the civil war’s worst human rights abuses), implemented many key provisions of the peace accords half-heartedly, if at all. By then, Guatemala's clandestine criminal networks had spent a decade successfully inserting themselves into virtually every manifestation of the state.

By 2005, the government of then-president Oscar Berger warned that Los Zetas, then enforcers for the Mexico’s Gulf Cartel and since 2010 an independent drug trafficking organization in their own right, were recruiting into their ranks members of Los Kabiles, a special-operations unit of the Guatemalan army trained in jungle warfare and counterinsurgency tactics, and which boasted a horrific human rights record in Guatemala itself. Los Zetas expanded their control of the country roughly at the same time as the beginning of the mandate of Álvaro Colom, who had become president the previous January as the candidate of the of the left-centre Unidad Nacional de la Esperanza (UNE), and his tenure would forever be marked for their violence.

The July 2010 killing of Obdulio Solórzano, a former Escuintla deputy and member of UNE’s executive committee as he drove through Guatemala City’s Zona 13 district, helped to reveal just how deep the links between crime and politics were.
 
After his stint in Guatemala’s congress, Solórzano had gone on to head the Fondo Nacional para la Paz (National Foundation for Peace or Fonapaz), a government organization set up in 1991 with the stated aim of funding programs to eliminate poverty. During his tenure it was discovered that some 1.4 billion quetzales (as the Guatemalan currency is known) could not be accounted for, and that some 32 NGO projects had been overvalued to the tune of Q93.7 million. He was dismissed in June 2009.
 
According to a Guatemala official I spoke with, Solórzano had long been the link between the San Marcos drug lord Juan “Chamalé” Ortíz - credited with first bringing Los Zetas to Guatemala - and several other drug traffickers and certain elements of the UNE. It was speculated that some of the inconsistencies in accounting during his time at Fonapaz may have been attempts to launder illicit drug profits. Jose Rubén Zamora, the crusading editor of Guatemala’s El Periódico, would later say that Guatemalan army general Mauro “Gerónimo” Jacinto (who was himself later murdered) described to him how Solórzano had funneled millions of dollars from drug traffickers such as Juancho León and from Los Zetas themselves into UNE campaign coffers to help Colom triumph in the second round of the contest over former general Otto Pérez Molina.
 
After Guatemala’s November 2011 presidential elections - which in the final round saw Otto Pérez Molina defeat a congressmen from El Petén of equally dubious reputation named Manuel Baldizón, Pérez Molina  announced that his government would have “a strategic plan to combat drug trafficking...in coordination with authorities in the United States and Mexico.”

But things were murkier than they appeared, as was demonstrated when Pérez Molina’s personal pilot, Haward Gilbert Suhr, the founder of the Aeroservicios Centroamericanos, S.A. group (which Pérez Molina was a shareholder in) was arrested along with a dozen other in San Pedro Sula, Honduras and charged with trafficking drug shipments on behalf of Mexico’s Sinaloa Cartel.

Finally, this past October, Otto Pérez Molina, resigned amid a corruption scandal that had reached the very pinnacle of the country’s political establishment, and was jailed the following day. The country’s former Vice President (she resigned in May), Roxana Baldetti, had been arrested and imprisoned in 21 August. Both are charged with running a criminal network known as La línea (The Line) while in office.
 
The arrests of the country’s two most powerful politicians took place following massive street demonstrations throughout Guatemala, and represented perhaps the apex thus far of the Comisión Internacional Contra la Impunidad en Guatemala (CICIG), a United Nations-mandated body that has operated since 2007, charged with investigating criminal organizations and exposing their relation to the state. Led by the Colombia judge Iván Velásquez Gómez, the swiftness with which CICIG, along with Guatemala’s Ministerio Público, brought about the downfall of the government was startling, especially given that Pérez Molina had only weeks left in office after this year’s presidential election,.

And what now in Guatemala? President-elect Jimmy Morales’ FCN was founded by former military officers leaning to the extreme right of the country’s military spectrum, including José Luis Quilo Ayuso, an associate of former dictator Efraín Ríos Montt, who currently has a possible genocide trial looming before him.

Will events of recent months mark a definitive break from Guatemala’s corrupt past? Despite the valiant efforts of Guatemala’s civil society. Guatemalan criminal organizations continue to make use of street-level gangsters as foot soldiers, as is evidence by an event several years ago that took place in Guatemala’s lethal and dysfunctional prison system, specifically the Varones in Guatemala City’s Zone 18 district, as was described to me by someone with direct knowledge of the case.

The impetus for the crisis was apparently precipitated by the presence in the prison of two well- known kidnappers, Rigoberto Morales Barrientos, alias Rigo Rico, and Jorge Mario Moreira alias El Marino. A senior government official allegedly received a sum of around 2 million quetzales (about USD 250,000) from the families of those victimized by the kidnappers to facilitate their execution inside the prison. Deciding to kill two birds with one stone, the individual then moved Morales Barrientos and Mario Moreira into two adjoining cells along with two other high-profile prisoners. These prisoners were Axel Danilo Ramirez Espinoza, aka El Smiley, a confessed member of the Mara Salvatrucha gang accused of participating in a wave of slayings of bus drivers that occurred in 2009 and Daniel Pérez Rojas alias El Cachetes, a Mexican citizen convicted this year of involvement in the March 2008 slaying of drug lord Juancho León, Shortly after the prisoners were moved, the CICIG received credible information that the men were to be murdered within hours and sent a delegation to the prison under the pretext that the prison would be receiving donation of closed circuit cameras and that it needed to be determined exactly how many would be needed. Once in the prison, they found the prisoners in two cells adjoining a cell of several gang members who were found to be in possession of several firearms and other weapons. The targeted prisoners were moved, and the incident was never made public.

The Morales presidency, which, despite often being erroneously portrayed as an outsider in the English-language press, is a creation of some of the most recalcitrant members of Guatemalan society, makes it hard for one to believe that Guatemala is not entering a key moment in its battle against impunity and corruption and that, in a year or two, Guatemala’s citizens will be on the streets in protest once again.

(This text was adapted from an address given by the author at an October 2015 conference on Gangs & Drug Trafficking in Central America coordinated by the Matthew B. Ridgway Center for International Security Studies and the Center for Latin American Studies (CLAS) at the University of Pittsburgh, with sponsorship from the Graduate School of Public and International Affairs and the University Center for International Studies.)

Tuesday, June 16, 2009

Papua New Guinea: Time to explore

Papua New Guinea: Time to explore

Published: June 12, 2009

Foreign Direct Investment

Remote yet resource-rich, Papua New Guinea has started to spark the attention of foreign investors, although tenacity is paramount, reports Michael Deibert.

(Read the original here)

In Papua New Guinea’s Madang province, hundreds of Chinese workers at the vast Ramu Nico nickel and cobalt project are the face of a remote nation confronting its ever-more attractive position on the global investment market.

Consisting of ethnic groups speaking more than 800 languages, Papua New Guinea (or PNG, as it is ubiquitously referred to in-country) has been richly endowed with other natural resources of a sort that international firms have only recently begun to fully explore.

The Madang mine, a $1.4bn undertaking by the China Metallurgical Group Corp (MCC), is the largest construction project in the country; it employs between 3000 and 3500 workers and will employ more than 4000 people when it is fully operational.

Bridging gaps

Consisting of a pair of sites that overlook some of the world’s most virgin tropical forests, accessibility to the mine has been vastly improved by MCC’s construction of a 250-metre bridge across the Ramu River, which ranks as one of the longest bridges in the country. A trip that once necessitated an eight-hour walk through dense forest now takes about 40 minutes from the river.

“When I first came here, there was no infrastructure and sometimes the road wasn’t passable,” says Liu Tian Hua, an engineer working on the project. “Living and working conditions are still very hard here but I think that we are making a profit both for MCC and for the local people, so I am very proud to work on this.”

PNG is often referred to as ‘the land of the unexpected’, and MCC has certainly found that to be the case. There have been strikes at the Madang mine by workers complaining of low wages and in November 2008, 213 Chinese employees were arrested, accused of entering the country with improper permits. However, MCC is gradually learning how to do business in the country, and cites a 2.5% ownership stake in the Madang mining that has been granted to a quartet of local landowner groups.

“In China, land belongs to the government, but here, land belongs to the landowners,” says James Wang, MCC vice-president for operations in the PNG capital, Port Moresby. “We need to make them see a real benefit from this, otherwise we can’t survive here. The Chinese team is becoming familiar with these issues and more confident with them.”

Political stability

One issue in PNG’s favour in recent years has been the relative stability brought to the country’s often-turbulent political scene by the seven-year tenure of prime minister Michael Somare, the longest period in office by a national leader since the country achieved independence from Australia in 1975. Veteran observers say that this political calm has been beneficial to the country’s economic development.

“We’ve had booms and busts, but the whole drive has been to keep the exploration and the resource industry going,” says Greg Anderson, executive-director of the PNG Chamber of Mines and Petroleum, an association that collectively represents the interests of those industries in the country. “PNG is in one of the most healthy macro-economic states it has been in for a long time because we’ve had a period of stability. And for the past three or four years we have had very good prices right across the board for agricultural products as well as mineral resources,” he says.

PNG’s GDP was estimated to have grown in 2008 by a robust 6.3%, while its GDP per capita was estimated to be a modest $2300. The country’s links with former colonial power Australia remain extensive, with Canberra supplying $300m in aid, almost 20% of the national budget, during fiscal year 2007/08.

The biggest foreign investment partnership with Australia in recent years is perhaps the PNG government’s involvement in a $11bn liquid natural gas (LNG) project operated by ExxonMobil Corporation and designed to filter gas southward via a pipeline to Australia.

Pipeline potential

An economic impact study on the LNG programme, prepared by Australian consultant ACIL Tasman, said that the project “has the potential to transform the economy” of PNG, potentially doubling the country’s GDP from K8.65bn ($3.17bn) in 2006 to an average K18.2bn a year. With the country’s mining revenues predicted to begin declining in about 2013 when many mines reach the end of their economic life, projects such as the LNG endeavour could become increasingly important to the country’s economic livelihood.

“We see this project as being potentially viable in a range of economic areas where the state would continue to benefit,” says Peter Graham, venture manager for ExxonMobil’s PNG LNG project. “The project is developing more than just the gas, it is also about developing PNG’s capacity, to leave a sustainable positive influence on the country.”

One hindrance in the country’s development, however, has been a persistent, pervasive nucleus of corruption that has had a strong influence on PNG’s body politic.

A 2007 report by PNG’s Public Accounts Committee, a constitutional body responsible for monitoring the spending of public money and quoted by the Berlin-based international corruption watchdog Transparency International, said that it found “evidence of misapplication, fraud, negligence, dishonesty and disregard for the law and for the welfare of the state and its citizens by public servants at every level in every inquiry held”. The lone exception, the report said, was PNG’s department of labour. The report also criticised “a clear web of organised and systemic illegality, designed to access public money in an illegal manner”.

Both Prime Minister Somare and the minister for public enterprises, Arthur Somare (the prime minister’s son), declined requests for comment for this article.

“The resources available to the PNG government are considerable and they should be much wealthier than they are,” says Jenny Hayward-Jones, director of the Myer Foundation Melanesia Programme at the Lowy Institute, an international policy think tank based in Sydney. “They’ve managed [the resources] quite well, but they haven’t actually delivered many benefits to their people. They are not making any progress on social indicators, health indicators are going backwards, education indicators are going backwards – they have been in decline over the past 10 years,” she adds.

Health issues

In contrast to all the development and international interest in the country, many of the country’s statistics remain grim, with an infant mortality rate of 46.67 deaths per 1000 live births and an estimated 6% of the population infected by the HIV virus. However, it is anticipated that the country’s vigorous mineral potential will help it to ride out the global financial crisis to construct a more economically viable and diversified state.

“We’ve got a very high level of exploration at the moment,” says Greg Anderson, whose Port Moresby office overlooks a backdrop of construction cranes. “And we hope that we’ll be able to nurture that through the current downturn,” he adds.

Sunday, May 20, 2007

A brave battle against corruption?

Let's hope so...

Late this week Haiti's president René Préval, following the lead of such brave voices-in-the-wilderness as Haitian senator Gabriel Fortuné, declared at an event celebrating the 204th anniversary of the Haitian flag that 2007 would be "the year of the war against corruption," and compared those involved with corrupt practices today to the "traitors" of two centuries ago.

Notably, Préval included in his denunciation, customs officials who receive bribes to let contraband cargo pass through, state employees dipping into the government till and judges who free prisoners in exchange for cash payments.

Calling on both the Unité de lutte contre la corruption (ULCC) and the Unité centrale de renseignements financiers (UCREF) to aid in the battle, one would hope the declaration of Haiti's president is a welcome official nod of solidarity with the efforts of organizations such as the Fondation Héritage pour Haïti, the domestic branch of Transparency International, which has pushed to keeo the ULCC as an autonomous body, rather than one under the control of Haiti's Ministère de l’Economie et des Finances, a move pushed for by members of Haiti's parliament.

If Haiti is ever going to succeed in weeding out the corruption that has had its tentacles coiled around the state almost since its founding, and reduce the poverty which former Police Nationale de Haiti director Jean-Robert Faveur once mournfully noted, is "killing the country," it will need autonomous agencies such as ULCC and UCREF that are not beholden to any politician's ego or vested interests.