Guatemala: Institutional Crisis and Business

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.

Friday, August 28, 2015

An article in 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. "

"... Juan Carlos Paiz, Presidential ex-commissioner of competition, said it is "strange" that the new staff members, Ricardo Sagastume and Acisclo Valladares Urruela, come from the telecommunications sector and calls attention to the fact that their arrival comes at a time when the 4G band concession, for mobile telephony with implications for Internet connection and digital television, is at stake. "It's a deal worth at least US $250 million which should be tendered so that it is available for any of the companies. It is important not to focus on a single supplier, so as to lower the price of calls," said Paiz Public Plaza."

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