In 2019, the perception of corruption in public institutions increased in all countries of the region except Costa Rica, where it remained the same as in 2018.
As has been the case in recent years, Nicaragua's public sector continues to be perceived as the most corrupt in the region (transparency level 22 on a scale of 0 to 100), followed by Guatemala (26), Honduras (26), Dominican Republic (28), El Salvador (34), Panama (36), and Costa Rica (56).
The Dominican Republic, Panama and Honduras are the nations in the region where the majority of the population believes that corruption in government institutions has increased in the last twelve months.
The report "Barómetro Global de la Corrupción: América Latina y El Caribe 2019 - Opiniones y Experiencias de los ciudadanos en materia de corrupción" (Global Corruption Barometer: Latin America and the Caribbean 2019 - Opinions and Experiences of Citizens on Corruption), compiled by Transparency International and published on September 23, 2019, evaluated the perception of corruption in the countries of the region and some aspects of insecurity.
In 2018, the perception of corruption in public institutions increased in all countries in the region, except Panama, where it remained the same as in 2017, and El Salvador, where it slightly decreased.
As in previous years, Nicaragua's public sector continues to be considered the most corrupt in the region (level of transparency 25 on a scale of 0 to 100), followed by Guatemala (27), Honduras (29), El Salvador (35), Panama (37), and Costa Rica (56).
Arguing that "it has violated human rights in Guatemala through selective and partial justice", President Morales decided to end the mandate of the United Nations International Commission against Impunity.
After more than ten years of the International Commission Against Impunity in Guatemala (CICIG), the Morales administration announced in 2018 that it would not renew the agreement with the United Nations that establishes the foreign institution dedicated to criminal investigation.
In 2017, the perception of corruption in public institutions increased in all of the countries in the region, with the exception of Guatemala and Nicaragua, where it remained the same as in 2016, and in Costa Rica, where it decreased slightly.
The public sector still perceives Nicaragua to be the most corrupt country (transparency level 26 on a scale from 0 to 100), followed by Guatemala (28), Honduras (29), El Salvador (33), Panama (37) and Costa Rica (59).
Proportion of people who have paid a bribe in the last year to access a public service: in Panama 38%, in Honduras 33%, in El Salvador 31%, in Nicaragua 30%, in Guatemala 28% and in Costa Rica, 24%.
EDITORIAL
The report "People and Corruption: Latin America and the Caribbean", prepared by Transparency International, shows how inhabitants of Latin American countries have got used to corruption: from the scandalous cases at the highest political level to under the table payments which are made on a daily basis when carrying out procedures as simple as requesting medical care in a public hospital or obtaining a document from a public office.
The lower house of the US Congress has approved the law known as the Nicaraguan Investment Conditionality Act or Nica Act, which proposes placing conditions on loans granted by international institutions to the government of Daniel Ortega.
The Nica Act, promoted by two US congressmen to limit investment and international financing in Nicaragua, was again seen by the lower house, which unanimously approved it. Now the bill will pass to the Senate, but in order to become effective, it must pass through three more proceedings.
An ICEFI study concludes that corruption in Guatemala, El Salvador and Honduras covers "virtually all sectors" and in Guatemala alone, the losses generated are estimated at $550 million per year.
The book "Corruption: Its Paths and Impact on Society and an Agenda to Confront it in the Central American North Triangle", "... studies the relationship between corruption and democracy, highlighting that corruption in the C.A.N.T -El Salvador, Guatemala and Honduras - has special characteristics derived from historical aspects, such as the construction of weak states, periods of authoritarianism, civil war and counterinsurgency systems, and the impairment of judicial independence."
In Costa Rica, the National Road Safety Council has signed a confidentiality agreement with the UNOPS to keep information on two publicly funded road construction projects a secret.
"When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed."
The housing market, casinos, concert halls, and the livestock sector are all used to launder money in Central American countries.
Excerpted from the report "International Narcotics Control Strategy Report, Volume II, Money Laundering and Financial Crimes" by the US State Department:
Costa Rica Transnational criminal organizations continue to favor Costa Rica as a base to commit financial crimes due to its location and limited enforcement capability. Costa Rica’s government has attempted to strengthen the legal framework for supervision and enforcement; however, challenges remain in mitigating money laundering risks. Costa Rica is a transit point that is also increasingly used as an operations base for narcotics trafficking; and significant laundering of proceeds from illicit activities continues. Costa Rica should continue to close financial crimes legislative gaps and allocate resources for investigation and prosecution.
The public sector felt to be the most corrupt is still Nicaragua (transparency level 26 on a scale from 0 to 100), followed by Guatemala (28), Honduras (30), El Salvador (36), Panama (38) and Costa Rica (58).
In 2016 the perception of corruption in public institutions increased in all Central American countries except Guatemala, where it remained as in 2015 and in Costa Rica, where it fell.
Fitch Ratings has downgraded Brazilian construction firm from B- to CC, arguing that the revelations about bribes "have exacerbated its reputational risk".
From a press release by Fitch Ratings:
Fitch Ratings-Sao Paulo-17 January 2017: This is a correction of a release published Jan. 17, 2017. It corrects the rating for the USD800 million senior unsecured notes due 2023.
It has been announced that a court in Brazil has suspended the granting of funds to the project in Nicaragua, arguing that the financial situation of Eletrobras does not justify making an investment abroad.
A precautionary measure approved by Tribunal de Cuentas de la Unión(TCU), the watchdog of use of state resources in Brazil, has suspended the transfer of resources which had been allocated to Eletrobras for the construction, in consortium with the construction firm Queiroz y Galvao, of the Tumarín hydroelectric station in Nicaragua.
If the Brazilian consortium confirms its resignation of the Tumarín project, Nicaragua will have start a new process in order to tender the project which is indispensable for the country's development.
The construction of the hydropower station has been surrounded by secrecy and lack of transparency, conflicts of interest, legal and political uncertainty and cases of corruption in the investor's country.