The Public Ministry of Guatemala has announced that its investigations have shown that a network of illicit laundering of money and other assets operated in the port terminal.
Consideration is being given to canceling the contract with the concessionaire Container Terminal Spanish Quetzal after the denouncement that it paid bribes to Perez Molina for the award of the terminal.
The Guatemalan president will stand trial on charges of conspiracy, bribery and special case of customs fraud.
Judge Miguel Angel Galvez issued an indictment against former President Otto Perez Molina, after analyzing the evidence presented by the prosecution and the International Commission against Impunity (CICIG).
In the view of Standard & Poor's the resignation of Perez Molina and the customs fraud will not have a negative impact on debt ratings in the short-term.
From a statement issued by Standard & Poor's:
Mexico City, September 3, 2015.- Otto Perez Molina resigned from the presidency of Guatemala after the National Congress withdrew his legal immunity. Perez Molina now faces a legal process to defend himself against accusations that he was involved in the case of customs fraud, which also involves other key members of his government.
With 132 votes in favor, the Congress decided to remove the president's immunity, who will have to face the accusations of corruption.
While the president insists on staying in office, the commission appointed to examine the arguments in President Perez Molina's defense and evidence presented by the prosecution decided unanimously to recommend to Congress to waive his immunity so that he faces judgement. On September 1st, the Congress voted and decided to remove the inmunity.
The appointment as Minister of Economy and Competitiveness Commissioner of people linked to the telecommunications sector has created strong suspicions, and comes at a time when a $250 million deal is on the table.
An article in Plazapublica.com.gt reports that "... the appointment of Ricardo Sagastume and Acisclo Valladares Urruela as Minister of Economy and Presidential Commissioner for Competitiveness, respectively, in a government that is drowning under the weight of allegations of corruption, has generated doubts and suspicions. When everyone else is leaving the ship, they are getting ready to get onboard. With a lack of coherent explanations from the Presidency and the new officials themselves, everything points to Tigo, the telephone company from which both of them come from, and a multi million dollar business deal in its favor as a result of the troubled waters in which the country finds itself. "
The Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations is asking him to leave office and be accountable, preventing unnecessary institutional expense for the country.
From a statement issued by the CACIF:
The undersigned organizations, members GUATEMALA FORUM, wish to express to Otto Perez Molina :
In the view of the private sector the decision taken by President Perez Molina to remain in his position contributes to the further deterioration of the country's image, at a time when the economy is showing signs of stability.
Just as the decision by the Public Ministry and the International Commission Against Impunity (CICIG) to conduct an investigation was applauded by the Guatemalan business sector, the president's decision to remain in office has not been well received and has caused deep concern, mainly because of the negative impact it has on the country as a destination for foreign investment.
The Public Ministry of Guatemala believes it is "likely" that President Otto Perez Molina was involved in the customs fraud network known as "La Línea" and has called for his impeachment in the Supreme Court.
The International Commission Against Impunity (CICIG) and the Public Prosecutor filed a request to lift the immunity of President Otto Perez Molina and to carry out a formal investigation based on the evidence which has been gathered.
Noting uncertainty and political instability in the country as the main risk factor for the economy, the rating remains at BB with a stable outlook.
From the press release by Fitch Ratings:
Fitch Ratings-New York-19 June 2015: Fitch Ratings has affirmed Guatemala's long-term foreign- and local-currency Issuer Default Ratings (IDRs) at 'BB' with a Stable Outlook. The issue ratings on Guatemala's senior unsecured foreign- and local-currency bonds are also affirmed at 'BB'. The country ceiling is affirmed at 'BB+' and the short-term foreign currency IDR at 'B'.
The tender for the construction of an Administrative Center of the State is attracting building consortia from around the world, some of which are already operating in the country.
The Spanish company Ortiz Construcciones y Proyectos, Odebrecht Investimentos e Participacoes, from Brazil, Inabensa Installations, from Span, Shikun & Binui Ltd., from Israel, and Consorcio CAE from Guatemala are construction companies with experience in works in Guatemalan territory, which have submitted documentation as expression of interest in bidding for the CAE.
Through the SICA countries in the region are assessing the possibility of negotiating a free trade agreement with the Asian nation.
The announcement was made by Guatemalan President Otto Perez Molina, during the II Business Forum between the region and Japan, which included the participation of companies and government representatives from both countries.
The Otto Perez Molina administration appears to be disintegrating in time with the successive dismantling of networks of entrenched corruption at the highest level, jeopardizing the country's basic institutions.
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