poli 332 - high level corruption chp 10
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given an example of corruption protests in brazil
2016- sau paolig- anti corruption protesters carried banners that read corrupt congress
courriptistill perissts
undermines confidence in demcoracy
public officials work against public interests
why do citizens lose faith it democracies
corruption and impunity enjoyed by those whoa re known to enegage in or haveengaged in actsof corruptions
citizens feel empowered whenthey vote and determine who governs them, but cant monitor and sanction misconduct bw elections
if judicial system cant investigate or is unwilling to investigate- and punish those suspected of corruption, citizens qeustion democracy
does democ lead to public good ir is it impotent in the face of state actors and public administration whoa re self serving ans use such positions for personal gain
what is corruption
the misuse of public office for purposed beyond oublic good
actors- people who hold public office
have engaged in actions liek transactions w privte sector actors and within public administration
theres a beneficiary
someone who exchanges a favour for a bribe and this can be a member of the family of the plitician, or the pliticians itself
can also be a pol party which extracts bribes for decisions favouring businesses and use them to fund campaigns and personal interests
high level corruption- the most likely kind of corruption +most relevant
also called grand corruption in contrats to ptetty corruption
corruption by people in public office wo have power to make key deicisions
incvils 3 categories of public officials
powerful pltiicians
national level
in exec and legislature
or subnational in coalitions
they make laws
provide polciy directives to public admin
this kind is calle dpolitical corruptoion
top level public administrators
key positions in national pa
implelemt laws and policies
look at budgets
andle large staffs
kind of corruption is called administrative corrupotion
high level members of judicary, uncluding prosecutors and jidges
people charged w investigating and jusging rimes
includes acts of corruotion jusfeing
called judicial corruption
ihg level corruption from the perspective of cili rights
corruption
affects democracu
economic development
individual socioeconomic welfare of citizens
two key civil rights at stake
equality rihts
powerful and economically welathy people, and the poor are equal infront of the law
all are bound by the same law
corruption violates this principle
power is abused, and people in high positions are not touchable bby the law then
civil rights need to constrain the acts of the powerful
due process rights
iCorruption violates the victim's right to due process.
Victims are denied fair legal treatment.
In high-level corruption, society as a whole becomes the victim.
Victims have a right to quick and fair justice.
Corruption creates a cycle of impunity, adding to the original wrongdoing.
Even the accused deserve fair trials and due process.
Evidence must guide guilt, making accountability key to fighting corruption.
The judiciary must stay neutral to avoid wrongful punishment of innocent people.
We must examine if judicial corruption worsens corruption by protecting the guilty or harming the innocent.
We need to check if corruption in the justice system makes the overall corruption problem worse—either by letting guilty people go free or by wrongly punishing innocent people.
corruption and due process rights
Corruption violates the victim's right to due process.
Victims are denied fair legal treatment.
In high-level corruption, society as a whole becomes the victim.
Victims have a right to quick and fair justice.
Corruption creates a cycle of impunity, adding to the original wrongdoing.
Even the accused deserve fair trials and due process.
Evidence must guide guilt, making accountability key to fighting corruption.
The judiciary must stay neutral to avoid wrongful punishment of innocent people.
We must examine if judicial corruption worsens corruption by protecting the guilty or harming the innocent.
if corruption does accoru- violates due process of the victim
victim isnt fiven due process rights
victims= collecitve socity as high level corruption includes usig public office for personal gains other than public god
viticms have the right to prompt administration of justice
thus corruption adds impunity for acts of corruoptions + to the initial act of corruption
+ those suspected have a right to a fair trials so their due process is considered
we can look at eveidecne to see if one is guilt y so impunity is treated as central for acts of corruption
+ to prveent judiciary from being polticized so innocent indivudlas arent wrongdully imprisoned
so we need to see if judicial corruption acts compound the problem of corruption- either by failing to punish the guilty or punisheong the innocent
We need to check if corruption in the justice system makes the overall corruption problem worse—either by letting guilty people go free or by wrongly punishing innocent people.
courruption in latin america
high level corruption is very generalized
even countries w a cleanr record of politics arent immune to corrupotion scandals
eg., chile and c osta rica- politicians and former presidents
even uruguay
these are coutnries that avoid corruption
withi the excpetion of these coutnries, corruption is systemic and pervandes a state’s centrak fucntions
coutnries that avoid corruotion
chile, costa rica, uruguay
what is CPI indec
corruption perception index of transparency internations- int ngo organizations
looks at citizens perceptons of corrutption
also conmbines grand and petty corruption info
concludes that only couties like chile costa rica and uruguay can eb considered relatively free of corruption
Bottom 3 performers (most perceived corruption):
Venezuela – Score: 15
Nicaragua – Score: 22
Honduras – Score: 24
global avg of corruption
43,
Percentage of citizens viewing congress politicians as corrupt?
52 percent.
Percentage of citizens perceiving government officials as corrupt?
49 percent.
Percentage of citizens seeing police as corrupt?
45 percent.
Is corruption widespread globally?
Yes, almost no country or institution is completely free from corruption.
Countries in South America frequently in corruption headlines?
Argentina 🇦🇷, Bolivia 🇧🇴, Brazil 🇧🇷, Colombia 🇨🇴, Ecuador 🇪🇨, Paraguay 🇵🇾, Peru 🇵🇪, Venezuela 🇻🇪.
Countries in Central America & Caribbean facing corruption issues?
mexico, El Salvador 🇸🇻, Guatemala 🇬🇹, Honduras 🇭🇳, Nicaragua 🇳🇮, Panama 🇵🇦, Dominican Republic 🇩🇴.
List of public officials commonly involved in corruption?
Presidents, Governors, Ministers, Heads of state companies, Legislators, Police.
Percentage of citizens seeing the president's office as corrupt?
53 percent.
The Scale of Corruption in Latin America – Key Points
Measuring corruption by money is difficult, but some cases give insight into the scale.
Brazil – Operation Car Wash (Lava Jato)
In 2014, the Brazilian company Odebrecht distributed $725 million in bribes across Latin America.
Argentina – Bribery Scheme (2008–2015)
Chauffeur’s notebooks documented $160 million in bribes for public works contracts.
One individual (a "frontman") allegedly laundered at least $60 million.
Guatemala – La Línea Scandal (2015)
Scheme led by the president and vice-president, involving kickbacks by importers in exchange for lower taxes.
Estimated cost: $1.15 billion in 2015 alone (about 1.8% of Guatemala’s GDP).
Estimated Annual Cost of Corruption (by country):
Peru: ~$3.6 billion/year
Colombia: ~$17.5 billion/year
Mexico: Between $26–130 billion/year
Conclusion:
These figures are estimates but show that high-level corruption can be massive, even as a share of national GDP.
In some cases, it’s useful to measure corruption as a percentage of GDP—showing its staggering economic impact.
Brazil – Operation Car Wash
Known as Operação Lava Jato (Portuguese).
Scandal erupted in 2014.
Involved the Odebrecht company, which paid bribes to politicians across many Latin American countries.
Bribes totaled approximately US $725 million.
Argentina – Bribery Scheme (2008–2015)
Bribes documented in chauffeur's notebooks.
Officials received bribes from companies that got public works contracts.
Total bribes: $160 million.
One person involved, known as a testaferro (Spanish for "frontman"), allegedly laundered $60 million for presidents.
Guatemala – La Línea Scandal (2015)
Known as La Línea, meaning “the telephone line” (Spanish).
Scheme led by the president and vice-president.
Involved kickbacks from importers in exchange for lower tax rates.
Cost the country around $1.15 billion in 2015, or 1.8% of its GDP.
Estimated Annual Cost of Corruption - peru
Peru: ~$3.6 billion per year
Estimated Annual Cost of Corruption - colombia
17.5 billion per year - colombia
Estimated Annual Cost of Corruption by Country- mexico
Mexico: Between $26 billion and $130 billion per year
MODUS OPERANCDI 1 - looking at politician, administrators, businesses, and aorganized crime
we need to go beyond the size of corruptin, and understand how it works
corruptiond deals w a lot of actors, like poltiicians, businesses and crim e netowrks that oeprate in diff forms
three main ways (modes) in which high-level corruption operates in Latin America.
SELF DEALING MODE - siphoning off of resources from the government’s budget
resources tranferred for a public to a private account secretively
or secret fromt to cover up illegal activity- relatives or friends are hired as consultants and resources are transferred to them in the absence of any work in return
or a more elaborate fron twhere theres a contract w a business thats over paid, but not delivering the speicifed services- underdelivering
TO REMEMBER: These operations are usually carried out entirely within a tight political circle, with little to no private sector involvement. “these operations are compeleted without the active collaboration of private actors outside the immediate circle of a politician”
EXAMPLES:
el salvador-
francisco flores- embezzled 15 mn $ donated by taiwan for earthquake relief
antonio saca- 300 mn$ of publci funds to his business
argentina
Presidents Néstor Kirchner (2003–2007) and Cristina Kirchner (2007–2015):
Used a testaferro (Spanish for “frontman”) to control a fake construction company.
That company received $3.3 billion in public works contracts.
State corproate mode- an exchange bw public officials and a private business
public officieals et a bridbe and give backa decision that favours the business
Example_ brazil- petrobras scandal which uncovered operation cash wash in 2014
politicians, petrobras execs and big engineering companies, including odebrecht- colluded in a massive bribery scheme
public contracts were overpriced by 3% and profits were skimmed
on the other hand- companies bribed petrobaras execs and poltiicians, and bribes given to poltiiciands - personal purposed and financing campiagns
they stand out because of the size and complexity of the corruption
odebrecht had an international strategy to offer bribes for public work contracts
had its own corruption division called the division of structured operatioes that made corrupt payments for govt contacts in atleast 9 coutnries other than brazil in latam
ii. another example is argentina- cristina kirchner’s presidency
colluded w construction companies
got bribes and sent overprices public contwcts
Private business depends on state favors, and corruption is deeply embedded in how business and politics interact.- classic mode in societites
State organized crime mode- a publci offical and a distinct non-state actor- organized crime
reciveing bribes for the actions of public official to keep the activity beyond the reach of the law or helping the illegal activity posper
bribes for aid to conduct illegal business
here, since the stateès partner is illegal- it does involve payment for some legal service like a public contract
this works w politiicans, officeholders or candidates for office, and icnludes exchangng bribes and funds for electoral compaigns
in other circumstances, drug cartels bribe securoty forces - the military and the police- in exchange for information about the operation of the forces
includes the fucntioning of a rival cartel or any planed operation so they can avpid dtetecion
these cases of corruption occur fro mexico, hondura, guatemala to colombia, venezuela, ecuador and peru.
this mode of option becaome virtually inevitable when orgnaized crime gains the power drug cartels have amassed in latam
Self dealing mode + examples
SELF DEALING MODE - siphoning off of resources from the government’s budget
resources tranferred for a public to a private account secretively
or secret fromt to cover up illegal activity- relatives or friends are hired as consultants and resources are transferred to them in the absence of any work in return
or a more elaborate fron twhere theres a contract w a business thats over paid, but not delivering the speicifed services- underdelivering
TO REMEMBER: These operations are usually carried out entirely within a tight political circle, with little to no private sector involvement. “these operations are compeleted without the active collaboration of private actors outside the immediate circle of a politician”
EXAMPLES:
el salvador-
francisco flores- embezzled 15 mn $ donated by taiwan for earthquake relief
antonio saca- 300 mn$ of publci funds to his business
argentina
Presidents Néstor Kirchner (2003–2007) and Cristina Kirchner (2007–2015):
Used a testaferro (Spanish for “frontman”) to control a fake construction company.
That company received $3.3 billion in public works contracts.
State corproate mode
State corproate mode- an exchange bw public officials and a private business
public officieals et a bridbe and give backa decision that favours the business
i. Example_ brazil- petrobras scandal which uncovered operation cash wash in 2014
politicians, petrobras execs and big engineering companies, including odebrecht- colluded in a massive bribery scheme
public contracts were overpriced by 3% and profits were skimmed
on the other hand- companies bribed petrobaras execs and poltiicians, and bribes given to poltiiciands - personal purposed and financing campiagns
they stand out because of the size and complexity of the corruption
odebrecht had an international strategy to offer bribes for public work contracts
had its own corruption division called the division of structured operatioes that made corrupt payments for govt contacts in atleast 9 coutnries other than brazil in latam
ii. another example is argentina- cristina kirchner’s presidency
colluded w construction companies
got bribes and sent overprices public contwcts
Private business depends on state favors, and corruption is deeply embedded in how business and politics interact.- classic mode in societites where private business exists
Petrobras Scandal (Brazil, 2014)
Exposed how businesses and governments can become deeply entangled in corruption.
Showed that corruption wasn’t random—it was systematic and organized.
Revealed that bribery was central to winning public contracts, and benefited all corrupt actors involved.
=——
Investigated as part of Operation Lava Jato (Operation Car Wash, in Portuguese).
Revealed deep corruption within Petrobras, a state-owned oil company in Brazil.
Highlighted how private engineering companies (especially Odebrecht) were involved.
🔁 How the Scheme Worked (see Figure 10.1):
Politicians and Political Parties:
Appointed their allies to executive positions in Petrobras.
Petrobras Executives:
Signed inflated public contracts (3%) (overpriced deals) with select engineering companies.
Engineering Companies (e.g., Odebrecht):
Paid bribes to:
Petrobras executives (to secure the deals).
Politicians (to keep influence and fund campaigns).
Everyone Benefited – Illegally:
Companies skimmed up to 3% off the value of each contract.
Politicians got rich personally and funded political campaigns.
🌍 Odebrecht’s Global Bribery Operation
Odebrecht ran a special internal unit called the:
Division of Structured Operations.
Its sole job: organize and distribute bribes.
The company bribed officials in at least 10+ Latin American countries, not just Brazil.
Example: Peru is specifically mentioned.
odebrecht in peru
started in the 1970s, peru becme a super imp market for the brazilian conglomerate
odebrecht icnreased ites infrastructure prokects by finding local partners and by estalishing relationships with government officials, all the way up to the president
super extensive neteork of relationship
FOUR (4) peruvian presidents
governmaental ministers, mayors, goernors, and members of congress leaders
bribes were offerred to all partie sin varying sizes depending on
how imp these parties were
and number of people involved in exec and legislative offices
these corrupt relation made odebrechtès business model
it bribed and used abt 29million dollars, secured govt contracts w profits upto 143mn$
odebrecht in peru
Odebrecht is a Brazilian conglomerate involved in the Petrobras scandal.
It entered Peru in the 1970s, targeting infrastructure projects, mainly in the Amazon region.
Odebrecht built influence by partnering locally and developing relationships with government officials, including Peru’s presidents.
Four Peruvian presidents were linked to Odebrecht:
Alejandro Toledo (2001–2006)
Alan García (2006–2011)
Ollanta Humala (2011–2016)
Pedro Pablo Kuczynski (2016–2018)
Other involved officials: ministers, governors, mayors, and congressional leaders.
Bribes were given at all three levels of government.
Odebrecht bribed all political parties, with bribe amounts based on the party’s influence and officials' positions.
The bribery strategy was economically beneficial:
Odebrecht spent $29 million in bribes.
In return, it received multi-million dollar public work projects, yielding $143 million in profits.
Key point: For Odebrecht, bribing public officials was part of their business model.
3 mode of high level corruption - state organized crime mode
State organized crime mode- a publci offical and a distinct non-state actor- organized crime
reciveing bribes for the actions of public official to keep the activity beyond the reach of the law or helping the illegal activity posper
bribes for aid to conduct illegal business
here, since the stateès partner is illegal- it does involve payment for some legal service like a public contract
this works w politiicans, officeholders or candidates for office, and icnludes exchangng bribes and funds for electoral compaigns
in other circumstances, drug cartels bribe securoty forces - the military and the police- in exchange for information about the operation of the forces
includes the fucntioning of a rival cartel or any planed operation so they can avpid dtetecion
these cases of corruption occur fro mexico, hondura, guatemala to colombia, venezuela, ecuador and peru.
this mode of option becaome virtually inevitable when orgnaized crime gains the power drug cartels have amassed in latam
When did Peru become an important market for Odebrecht?
In the 1970s.
What type of company is Odebrecht, and what major scandal was it involved in?
Odebrecht is a Brazilian conglomerate involved in the Petrobras scandal in Brazil.
How did Odebrecht expand its infrastructure projects in Peru?
By finding local partners and establishing relationships with governmental officials.
Which Peruvian presidents were involved in the Odebrecht bribery scandal?
Alejandro Toledo, Alan García, Ollanta Humala, and Pedro Pablo Kuczynski.
Besides presidents, who else was involved in bribery schemes with Odebrecht in Peru?
Government ministers, governors, mayors, and congressional leaders of political parties.
What does the pattern of Odebrecht's bribes reveal about their political strategy?
Bribes were offered to all political parties and varied based on the importance of the party and individuals in office.
How much did Odebrecht spend on bribes in Peru?
About $29 million.
What were the estimated profits Odebrecht earned from public work projects in Peru?
$143 million.
Who are typically involved in bribery exchanges with organized crime?
Politicians, officeholders, or candidates for office, where bribery and funding for electoral campaigns may occur.
How do drug cartels typically bribe security forces?
Drug cartels may bribe the military and police in exchange for information about their operations, including details on rival cartels or planned operations to avoid detection.
In which countries do cases of corruption related to organized crime commonly occur?
Organized crime-related corruption is observed in Mexico, Honduras, Guatemala, Colombia, Venezuela, Ecuador, and Peru.
modus operandi 2- role of the international banking systems
one of the common challenges faced by the beneficiaries of the bribes is to make them undetectable and to allow them to make us of the money legally.
they can address this domestically, but for huge epsiodes of corruption w large amts of money, international money laundering is relied upon
it entails three stps- placement, layering, and integration
placement- placing the illicit funds into the financial system
layering- mixing th eilcit money w legitimate income through complex fianngcial transcations that hid the origins of the illicit money.
this money is often send to foreign offshore banks called safe havens, which dont disclose info of accounts to authorities
popular safe havens- CA-panama, belize. CARRIBESAN ISLANDS- cayman islands, nevis
USA- one of the biggest safe havens- delware (biggest provider of anonymous shell corporations), Nevada, Wyoming
only w the passage of the corporate transparency act in 20201 requiring disclosure of beneficial ownersip have we seen some change.
Integration- illicit funds are moved back to the banking systems as clean money that cant be traced to its orgiigns and can be freely used
thus, role of international banking systems and laws of nations that allow banks to operate as safe havens is important
igh level corruption is a domestic matter and necessarily involves a holder of public office
much of the corruption is only possible tdue to lax laws and int banking system - espo in todays globalized world
the IBC is an inextricable part of the modus operandi of actors who enagge in corrupotion
three steps of money laundering
Placement – Deposit of illegal funds into a financial institution.
Layering – Transfers and transactions to disguise the origin, often using offshore accounts and shell banks.
Integration – Reintroducing laundered money into the legitimate economy (e.g., investments, purchases).
Some countries are known for being tax havens, including:
Caribbean countries (e.g., Cayman Islands) CA- (Panama, Belize)
U.S. states like Delaware, Nevada, and Wyoming have also allowed anonymous shell corporations.
Delaware was previously the world’s largest single provider of anonymous shell companies.
the judicisal response to corruption
the giths of victims
acts of high level corruption have abuses of power and diversion of public funds from public purposes
in addition to any specific voctim (someone wo got extorted), citizens are collectively victims of corrupton
hard to know if these acts of corruption would be punished or detected
= in tthis regard theres positive change in latin america
many pres who headed democ govt have been investigated on corruption charges
formr democ presidents have recived prsion sentences on corruption charges for
argentina
brazil
peru
ecuador
venezuela
paraguay
also central american countries
costa rica
el salvador
guatmela
nicaragua
panama
dr
in some coutnries even business leaders who briobed public officials were sent to prison
thus, elites are also being sentences and politically powerful and wealthy arent enjoying blanket impuntiy
BUT
the powerful are frequently not convicted tu to judicial corruption
the justice system is their last bation of protection for the corruptio
they use their econ and poliitical power to pressure and buy off prosecutors and jusges
at times, prosecutors and judges, congnizant of their own power, are the ones who ask for a bribe in exchange for a favourable decision
these instances of juscicial corruption for personal gain or political loyalty have been well documented
colombia, argentina, bolivia, guatemala, panama, peru and mexico
in argentina, theres a common expression that prosecutor use twhen avoidjng moving forward w a case that indicates indictment- place the case ina drawer or cajonear un expediente
brazil- it ended u with pizza- the pursuit of possible corruption charges have been set aside and nothin hapened
mexico- jusged that work w drug cartels are known as narco judges
also, the risk run by high level poltiician to engage in corruption is low- only 2% be 1996 and 2016 got convicted in argentina
thus impunity is called corruptions evil tiwn and thus citizens have no confidence in judiciary to punish the guilty
65% have no confidence
the rights of the accused
judicial system gurantees due process for the political and eocnomic elites accused of corruption - theure well respected
because their able to hire lawyers that fenef them
jurdges and proseutors bend over backwards to repsect their rights
but sometime judiciary is politicized and useds the law as a weapond to target political oponent or extrort them
lawfare is the misuse of the leal system aainst an enemey
pol and econ elites claim the charges of corruption are false and are npolticially motivated vendetta
govts have collected information on their poltiical opponent sin soem instances and used the governemnts intteleigence to pressure proesucetors and jusges to weaken the rivals and extract reosurces
in other instances- jusges and proscutrors- polticlaly motivated and make biased decisions
law as a weapon in fights amidts pol and economic elites
where have instances of juscicial corruption for personal gain or political loyalty have been well documented
colombia
argentina
mexico
peru
panama
bolivia
guatemala
in argentina, theres a common expression that prosecutor use twhen avoidjng moving forward w a case that indicates indictment- place the case ina drawer or cajonear un expediente
brazil- it ended u with pizza- the pursuit of possible corruption charges have been set aside and nothin hapened
mexico- jusged that work w drug cartels are known as narco judges
eg. in colombia, the attorney generals office found a corruption network in the ntional justice sytems- high court justicies were revieveing bribes from influential defendants.
Former Latin American presidents charged for acts of corruptio - bolivia, chile, colombia
No former presidents charged
Former Latin American presidents charged for acts of corruptio - chile,
no
Former Latin American presidents charged for acts of corruptio - colombia
none
Former Latin American presidents charged for acts of corruptio - uruguay
none
Former Latin American presidents charged for acts of corruption - brazil
Brazil
Luiz Inácio Lula da Silva (2003–2010):
Sentenced to 17 years in prison
Released after 580 days
Sentence later revoked
Michel Temer (2016–2018):
Trial pending
Briefly jailed pending trial
Former Latin American presidents charged for acts of corruption- argentina
Argentina
Carlos Menem (1989–1999):
Two prison sentences (7 and 4.5 years)
Avoided jail due to senatorial immunity
Died without being incarcerated
Cristina Fernández de Kirchner (2007–2015):
Trial is ongoing
Former Latin American presidents charged for acts of corruption- ecuador- also how many
Abdalá Bucaram (1996–1997):
Went into exile
Corruption charges overturned
Gustavo Noboa (2000–2003):
Went into exile
Corruption charges overturned
Lucio Gutiérrez (2003–2005):
Imprisoned for ~5 months
Charges were later dropped
Rafael Correa (2007–2017):
Sentenced to 8 years in prison
Currently lives outside the country
Former Latin American presidents charged for acts of corruption- paraguay
Juan Carlos Wasmosy (1993–1998):
4 years in prison; reduced to bail and house arrest
Absolved in 2004
Luis Ángel González Macchi (1999–2003):
8 years in prison; sentence revoked on appeal
Horacio Cartes (2013–2018):
Extradition from Brazil requested
Former Latin American presidents charged for acts of corruption - peru
Alberto Fujimori (1990–2000):
25 years in prison (charges include human rights violations)
Alejandro Toledo (2001–2006):
Awaiting extradition from the U.S. to Peru
Alan García (1985–1990, 2006–2011):
Arrested in 2019, committed suicide as police closed in
Ollanta Humala (2011–2016):
Trial pending; jailed for 9 months prior to trial
Pedro Pablo Kuczynski (2016–2018):
Trial pending; under house arrest prior to trial
Former Latin American presidents charged for acts of corruption - venezuela
Jaime Lusinchi (1984–1989):
Fled the country; charges later dropped
Carlos Andrés Pérez (1974–1979, 1989–1993):
Sentenced to 28 months in prison
Allowed to serve time under house arrest
Former Latin American presidents charged for acts of corruption - mexico
Mexico
Enrique Peña Nieto (2012–2018):
Prosecutors opened a corruption investigation
Former Latin American presidents charged for acts of corruption - costa rica
Costa Rica
Rafael Ángel Calderón (1990–1994):
5 years in prison; reduced to 3 years
Miguel Ángel Rodríguez (1998–2002):
5 years in prison; sentence revoked on appeal
Former Latin American presidents charged for acts of corruption - el slavador
Francisco Flores (1999–2004):
House arrest (late 2014–early 2016); died while awaiting trial
Antonio Saca (2004–2009):
10 years in prison
Mauricio Funes (2009–2014):
Ordered to pay $450,000 in restitution
Former Latin American presidents charged for acts of corruption - guatemala
Jorge Serrano Elías (1991–1993):
Extradition requested; attempts failed
Alfonso Portillo (2000–2004):
Nearly 6 years in prison (convicted in the U.S.)
Otto Pérez Molina (2012–2015):
Trial pending; jailed pending trial
Former Latin American presidents charged for acts of corruption - honduras
Rafael Callejas (1990–1994)
Extradited to the U.S.
Died in prison while awaiting sentencing
Juan Orlando Hernández (2014– )
Named by U.S. federal prosecutors as a co-conspirator in a New York case
Former Latin American presidents charged for acts of corruption - nicaragua
Arnoldo Alemán (1997–2002)
Sentenced to 20 years in prison
Sentence overturned in 2009
Former Latin American presidents charged for acts of corruption - panama
Manuel Noriega (1983–1989)
30 years in prison (convicted in the U.S. on corruption and other charges)
Ernesto Pérez Balladares (1994–1999)
Under house arrest during trial
Charges were later dismissed
Ricardo Martinelli (2009–2014)
Under house arrest for 2 years during trial
Acquitted
New indictment in 2020
Juan Carlos Varela (2014–2019)
Indicted in 2020
Former Latin American presidents charged for acts of corruption - cuba
No former presidents charged
Former Latin American presidents charged for acts of corruption - dominican republic
Salvador Jorge Blanco (1982–1986)
Sentenced in absentia to 23 years in prison
Sentence was later overturned
the rights of the accused
judicial system gurantees due process for the political and eocnomic elites accused of corruption - theure well respected
because their able to hire lawyers that fenef them
jurdges and proseutors bend over backwards to repsect their rights
but sometime judiciary is politicized and useds the law as a weapond to target political oponent or extrort them
lawfare is the misuse of the leal system aainst an enemey
pol and econ elites claim the charges of corruption are false and are npolticially motivated vendetta
govts have collected information on their poltiical opponent sin soem instances and used the governemnts intteleigence to pressure proesucetors and jusges to weaken the rivals and extract reosurces
in other instances- jusges and proscutrors- polticlaly motivated and make biased decisions
law as a weapon in fights amidts pol and economic elites
Corruption as a systemic problem for democracy
- acitng agaisnt publci intereste
hidden nature- more flow of moeny= more corruption
systemic problem w mulitple actors - public and prvate+ banks
judicials repsonse - many have sanctioned corrupt acotrs
but also allows ppl to get away
law helps them undermine
abuse power
jdicial corruption
latain amaeirca ahs corrupt and unust democracies
no ue process and ewquality rights
Powerful public officials in many Latin American democracies act against the public interest.
They abuse power and collude with economic elites and organized crime for personal or partisan gain.
Many Latin American democracies fail to ensure the rule of law and do not guarantee equality before the law.
Trends and Challenges in Addressing Corruption:
It is difficult to measure if corruption is increasing or decreasing due to its hidden nature.
The scope and scale of high-level corruption may have increased with the expansion of global financial systems in the neoliberal era.
Corruption is a persistent issue, and no significant or sustained efforts have been successful in countering it.
Systemic Corruption:
Corruption is a systemic problem in Latin America.
It is carried out and covered up by:
Public officials in top positions (politicians, prosecutors, judges, administrators)
Private actors, especially businesses and organized crime
Corruption is often enabled by international banks.
Judicial Response and Impunity:
Corruption is not due to a few "bad apples", but rather entrenched in the system.
Public officials often work in concert or look the other way.
Some countries show positive progress, but overall, impunity is common.
Citizens are aware that:
Public resources are misused for personal or partisan gain.
Officials are rarely held accountable.
Innocent people may be falsely accused or framed.
Judiciary as Both Problem and Solution:
The judiciary, usually key to upholding rule of law, is often part of the problem.
It frequently fails to protect civil rights or enforce due process.
Judges and prosecutors may abuse power, worsening the problem.
High-level corruption is both political and judicial.
The state’s final barrier—judicial system—against corruption is itself corrupted.
Impact on Democracy:
Corruption undermines democratic values.
Citizens value democracies that protect rights (equality before law, due process).
Latin America is filled with what can be called:
Corrupt democracies
Unjust democracies
These stand in contrast to democracies that uphold the rule of law.
studies of corruption - detrminants and factors that can explain or help
high hopes on democ but democracies can be corruptied and hecne their role in containing corruption is muted
civil sevice jobs shd be filled and promotes based on merit than political loyalty
judiciary and the roile of civil socieyty, the media and the international community
economic inequality, cultrue, education history
but we gocus on 4 facyors
i. democracy
ii. public administration
iii judiciairt
iii civil society and int communti
case studoes- brazil guatemala mexico
BRAZIL- judicial action agains politician and business elites
high elvek corruptuon has been a part of brazilian politics under diff plitical regimes and democ govts
has usualy gone unchecker o unpunished
snse of nothin could e done till operation car wash in 2015
The start of the operation-
initial brekathrough un the car wash operation lava jatoi came from cirminal investigation by jurdge sergio moro and prosecutor deltan dallagnol
judges also participate in pre tril investigatuon in brazillian civil law system
followed a lead of money laundering and bribe to an executive of petrobras- brazils state owned oil company
investigation focussed on business leaders marcello and eike
brazils investigators took advanatage of a pleas bargin law of 2013 and ordered preventive prison for business leaders, presuusirng them into striking a deal.
a 2013 law that permitted the use of plea bargain
agreements (delagdo premiada, in Portuguese), whereby defendants were offered reduced sentences in return for cooperating with investigations.
preventive prison (the jailing of someone before a trial has concluded) for key business leaders.
business leaders revealed how they paid kickbacks to petrobras officials for inflated contracts, funnelled these proceeds to poltiical parties and how politicians ahd participated in the scheme
international networks helped
swiss authrotieies collaborated and discovered that a petrobas director has hidden millions of dollars in offshore accounts
then in late 2014, us doj also investigated petrobras, which had issued securities in the us, so petrobras was potentially liable in the us foreign corrupt pracices act making it unlawful for companies to pay bribes to foriegn govts and obtain busiensses.
so brazil got helpful info abroad
JUDICIAL BACKNG AND RESULTS
A SECOND BIG BREAKTHROUGH
when jurdge moro and prosecutor dallagnol ot help from the highest level of the jiudcial system- backed by the countrys attorney general rodrigo janot to support the lava jatoinvestigatoon
another backing came from the sc’s appoval of investigatons of high level politicans- its ruling in march 2015 that it culd investigate 50 high leve; politicitancs involved in the scandal.
becaus ein brazil only sc has juriscition over high level ocrruption
judicial reuslts were impressive and unprecedented- the trials and ivestigations led to sentences that put key members of Brazilian political class and several economic oligarchs behind bars
Before Lava Jato, almost every attempt to prosecute high-level corruption in Brazil had failed.
The perception that crimes of corruption went unpunished was serious dented
QUESTIONING OF JUDGE MORO
POLTITICLA agenda during thes einvestigation??
applied diff standards ewhen judging oltiicans from the leftist workers’ paty
targetted specific individuals like president lula da silva and other PT memebers
leaked docs in 2019
judge moro may have been partial in his decisions
shared advace, investogative leads and inside info w prosecutors
wanted to influence the 2018 presidential eletion to thwart the PT party victory potentially
Supreme Court Ruling (2021):
The Supreme Court of Brazil ruled that Judge Moro had not been impartial in his handling of Lula’s case.
ASSESSMENT
the lava jato operation was a key test case for brazil that suprised observers who had asuumed that nothign could be done to tackle corruption in rbazil
a corruption scheeme w the most pwowerfu had been exposed
blanket impunity lifted
due process rights questions- legitimacy of the judicial process
shows the great potnetial and pitfalls of strong judicial action against corruption
dbetaes provoked by actions of judge moro
are judges actually impartial and not play poltiics from the bench
moro denies his actions being policially motivated, and didnt olay polticis
but many consider that his actions were targestted - motivated by animosity against the workers party PT and former president Lula
suspicion- he had polticial agenda and might not have acted purely on the basis of liegal pricnope when he came a minsiter in jair bolsonaros administration in 2019
issye- is when brazils judical pwoer was used for political aims and is the judiciary politicized
he has also denied the political cosnewuences of his judicial actiosn saying that they arise out of court and are beyond the judge’s control
essentially judge moro’s actions led to lulas disqualification as a presidential candiate in the 2018 election, when he was a storng frontrunner- this led to the eltion of former military officer jair bolsonaro’s election
he campaifned for misogyny racism zenophobia and wnated brazils military regime back and justified the use of troture
still actions of moro can be consdiered as a contributing dfactors to the election fo a persident known to be athret to demcoracy
thus, corruption is systemic and fight against it needs committef fighters
What were the main allegations against Judge Sérgio Moro during the Lava Jato Operation?
Judge Moro was accused of having a political agenda, showing bias against the leftist Workers’ Party (PT), especially former President Luiz Inácio "Lula" da Silva. - held them and tried them to different standards- almst targettign them
Leaked documents from 2019–2020 revealed he may have passed advice, investigative leads, and inside information to prosecutors,
acted in ways that may have influenced the 2018 presidential election to prevent a PT victory.
What was the Brazilian Supreme Court's ruling on Judge Moro's conduct in 2021?
: In 2021, the Supreme Court ruled that Judge Sérgio Moro had not been impartial in his decisions related to former President Lula, casting doubt on the fairness of the investigations and trials he oversaw during the Lava Jato Operation.
jurdge moro’s brief career in polticis
lava jato made him a suehold figure and bolsonaro offerred him a cabinet position for minster of juscitce
he reigned in april 2020 thou w bolsonaro meddling ina federal investigatoion
reinforces also his pol motive in lava jato gainst pt
corruption at the highest level of braizllian elite- who was involved
marcelo odebrecht the cero of odebecht- boggest engineering and contract company in latin america
eike batista - wealthiest man in brazil in 2012 and ceo of ebx grp- focused on ifnr and natral reosurces
Which major Brazilian business leaders were implicated in Operation Car Wash for their involvement in corruption schemes?
A: Marcelo Odebrecht, CEO of Odebrecht (the biggest engineering and contracting company in Latin America), and Eike Batista, CEO of EBX Group and the wealthiest man in Brazil in 2012.
Both were exposed as key figures in business-led corruption uncovered by the Lava Jato investigation.
What international networks and foreign institutions were involved in the early phase of the Lava Jato investigation?
A: Swiss authorities collaborated by uncovering offshore accounts linked to Petrobras executives, revealing hidden millions. The U.S. Department of Justice also launched an investigation into Petrobras in 2014, due to the company issuing securities in the U.S., making it subject to the Foreign Corrupt Practices Act of 1977.
What legal tool, introduced in 2013, allowed Brazil’s investigators to gain insider cooperation in Operation Car Wash?
A: The 2013 law permitting plea bargain agreements, known in Portuguese as "delação premiada." It allowed reduced sentences for defendants in exchange for cooperation, leading to extensive testimony from business leaders on bribery and kickbacks.
Q: Who were the judge and prosecutor who played key roles in Operation Car Wash?
A: Judge Sérgio Moro and Prosecutor Deltan Dallagnol
What role did Brazil’s judiciary play in enabling the Lava Jato Operation to proceed, particularly regarding high-ranking officials?
A
: A major breakthrough came when the Attorney General Rodrigo Janot supported the operation, and Brazil’s Supreme Court approved investigations into powerful officials. The Court's jurisdiction over high-ranking figures was crucial, and its approval helped remove legal barriers protecting politicians.
BRAZIL ATTORNEY general
general rodrigo janot
Mexico’s Deep-Rooted Corruption and Collusion with Organized Crime
mexico is a coutnry where poltiicaiana dn administrators woirk together w organzied crime, espcedially drug cartels
Mexico had a longstanding reputation for corruption during the Institutional Revolutionary Party (PRI) era throughout much of the 20th century.
The shift to democracy in 2000 did not reduce corruption.
The rise of drug cartels in the 1970s and 1980s intensified the corruption problem.
KEY CASES
GENARO GARCIA LUNA
she was mexcios public minister under pres felipe in 2006-2012, alsos the architect of thre drug war
she recieved millions of dollars in bribes for exhange in protection of the sinaloa cartel led by el chapo
Iguala Massacre (2014)
Involved the kidnapping and presumed killing of 43 students from the Ayotzinapa Rural Teachers’ College.
Attributed to the joint action of local officials, police in Iguala, and the Guerreros Unidos cartel.
Public officials received kickbacks in return for facilitating cartel activities.
3Tomás Yarrington
Governor of Tamaulipas (1999–2005).
Took bribes from cartels like the Gulf Cartel.
Allowed drug traffickers to operate freely in exchange for payment.
4. Roberto Sandoval Castañeda
Governor of Nayarit (2011–2017).
Suspected of receiving bribes from the Jalisco New Generation and Beltrán-Leyva cartels.
Demonstrates continued state-crime collusion in law enforcement.
THE ROLE OF THE UNITED STATES
1. U.S. Pressure and Investigations
The US government has pressured Mexico to address the drug cartel problem.
This pressure is linked to the impact of Mexico’s drug cartels on the U.S..
2. US Drug Enforcement Administration (DEA)
The DEA, part of the US Department of Justice, has led investigations into:
Collusion between Mexican officials and drug cartels.
Cartels’ links to drug sales or money laundering in the U.S.
3. US Legal Actions
The U.S. has issued charges and sought to extradite suspects to face trial in U.S. courts.
Some suspects are arrested while visiting the U.S., as in the case of Genaro García Luna.
Others, like El Chapo, have been extradited and sentenced.
JUSTICE SYSTEM IN MEXICO
things aare very different in mexico
steps have been taken by public authorities to punish those involved in acts of corrutopions, like several governrd have been sentenced on corruption charges, but jhe justice systems repsonse shows way mor
prosecutorial and police incmompetence-
charges against two v high elevl officials- a former drug czar noe ramirez mandujano and a former number 2 in the defense department tomas angeles dauahare
thes were dropped in ealry 2013
judge clasimed witness tesistmonies wer fals
prosecures couldnt find evidence to support charges
actions of the judiciary are politically influence
during president calderon’s term - national acipn party, a case where pri memebers were targetted happened.
then it was dropped once pri won presicdency in 2012
role of politics
general cienfuegos (former sec of defense- arrested in us in late 2019
mexican military pressured govt to demand his return from us, which the govt did
us doj accepted this demand because i part it promised that cienfuegos alleged crimes would be investigated in mexcio
but when he was returned to mexico, he was freed, and his charges being investigated was dismissed
role of the united states in helping mexico
1. U.S. Pressure and Investigations
The US government has pressured Mexico to address the drug cartel problem.
This pressure is linked to the impact of Mexico’s drug cartels on the U.S..
2. US Drug Enforcement Administration (DEA)
The DEA, part of the US Department of Justice, has led investigations into:
Collusion between Mexican officials and drug cartels.
Cartels’ links to drug sales or money laundering in the U.S.
3. US Legal Actions
The U.S. has issued charges and sought to extradite suspects to face trial in U.S. courts.
Some suspects are arrested while visiting the U.S., as in the case of Genaro García Luna.
Others, like El Chapo, have been extradited and sentenced.
The US government has frequently exceeded its legal prerogatives. In essence, it has imposed its law beyond its border. Nonetheless, once suspects enter the US justice system, the force of the law is inescapable.
JUSTICE SYSTEM IN MEXICO
things aare very different in mexico
steps have been taken by public authorities to punish those involved in acts of corrutopions, like several governrd have been sentenced on corruption charges, but jhe justice systems repsonse shows way mor
prosecutorial and police incmompetence-
charges against two v high elevl officials- a former drug czar noe ramirez mandujano and a former number 2 in the defense department tomas angeles dauahare
thes were dropped in ealry 2013
judge clasimed witness tesistmonies wer fals
prosecures couldnt find evidence to support charges
actions of the judiciary are politically influence
during president calderon’s term - national acipn party, a case where pri memebers were targetted happened.
then it was dropped once pri won presicdency in 2012
role of politics
general cienfuegos (former sec of defense- arrested in us in late 2019
mexican military pressured govt to demand his return from us, which the govt did
us doj accepted this demand because i part it promised that cienfuegos alleged crimes would be investigated in mexcio
but when he was returned to mexico, he was freed, and his charges being investigated was dismissed
a recent major anti corruotion reforms shows limitations of mexicos approach to corruption
president enrique pena nietoe - 2012-2018 introduced the national anti corruption system
sna was a body that coodrdinated anti corruption actions of existenting govt bodies + allowed for the participation of civil society
the ptoential of this body was restircitied
it was built thorugh isntitutions that maintained and masked corrupt behaviour
created an undefunded body, with rules that make it workable
its everntually blocked or ignored
it wasnt accompanied by a key reform liek in operation lava jato, we say the introduction of pleas bargain agreements
any interest in reducoing corruotipn affects the interest fo the powerful witin the govt and the state that benefits from corruption
thus these are empty gestures
in the absence of real poltiical resolve by govt authorities and an independenct judiciary,high level corruptionc csnt be take out
a recent major anti corruotion reforms shows limitations of mexicos approach to corruption
president enrique pena nietoe - 2012-2018 introduced the national anti corruption system
sna was a body that coodrdinated anti corruption actions of existenting govt bodies + allowed for the participation of civil society
the ptoential of this body was restircitied
it was built thorugh isntitutions that maintained and masked corrupt behaviour
created an undefunded body, with rules that make it workable
its everntually blocked or ignored
it wasnt accompanied by a key reform liek in operation lava jato, we say the introduction of pleas bargain agreements
any interest in reducoing corruotipn affects the interest fo the powerful witin the govt and the state that benefits from corruption
thus these are empty gestures
in the absence of real poltiical resolve by govt authorities and an independenct judiciary,high level corruptionc csnt be take out
guatemala- itnernational assistance against elites
corruption is most feeply ingrained in pol practice in altam
faces stanceles to fight against
its judicial systems ha s been hijacked by organzied crimes, suffers from a long and troubled hsitory of corruption
the rate of impunity of criminals is said to be 98%
factors that allow corruption to go unchcked
the president and memembers of parliaments are given immunity by law
removing this is cumbersone
before a political official can be detaikned or sbject to proceedings, the court needs to allow a commiussion to cosndier if immunity from prosecution shd be liftef
if investigations and trials are allowed to proceed, prosecutros and judges who are known to be against corrupotion must worry for their loves and families- threatened
power gros have always controlled the justice system and have aought porivilegges to evade the rule of law
CORRUPTION
la linea- CORRUPTION HAS thus been endemic inguatemela
under president otto perex (2012-2015), and vp roxana baldetti, la linea is an emblamatic case la linea= telepohone line
netowrks of ppl within tax and customs admin led by perez and baldetti were involved
revolved around a reduction in customs for importers in exchnage for bribes
la line because there wa s aphone number an import company could call for reduced customs
Phoenix case
a poltiical powerbroker embezzled 50 mn usd from coutnry’s social security funds before 2002
ALEJANDRO SINIBALDI
sinibaldi reciveved 10mn usd in bribes from a construction ocpnay as minister of communication
Corruption is deeply rooted in state institutions
Top government officials have been directly involved in embezzlement and bribery
These cases show how elite networks have used public power for private gain
UN ASISSTANCE
stpes taken to dectect and ounish acts of corruption
2006- bulding and international body called International commisison against impunity in gautemala
operated till 2019
in 2013, un sec gen atonio gueterres appointed ivan velasques as commisioner of cicig
designed to elp the coutnry’s puclic prosecutor office and other insitutions charge w investigateing cases of corruption
but, the cicig didnt have proescutorial powers, so didnt work w prosec and police, but gave expeerise and resources
produced amazing results
the publci proexutors office w cicigs support conducted 100 investigations and prsoecuted 660 individuals, and got 400 convictions
the highest profile inv included pres and a sitting pres
in 2013 a cicig baccke divnestigation led to extradition of formed pres alfonso portillo (2000-2004) to the us
us gave him a lengthy sentence
another investigation in 2015 led to resignation of perez molina and baldetti vp
baldetti was sentences to 15.5 yrs in prsion
perez molina sent to jail where he awaits trial
role of civil society
cicig was due to lobbying by civil society organziation in guatemala- persistent lobbying
civil society organziations showed backing of cicg by protests, when its role was question by thos investigated, or when it publsied reports of wrongdoings
guatemala tus hsowed the ptoential of international assitance which didnt substitute domestic actors, but combined broad based support by a mobilized citizenry
pushback
cicig recivreed backlash from th coutnrys elites and it implicated both polticial and business elites
it s work was contigent on the renewal of its mandate every two eyars and it was positive and effective
70% of the populations supported CICIGand it was popular
presdient jimmy morales - under suspeicion of also engageing in corrutopm- unliateal didnt renew cicig’s madate
it disbanded in late 2019
And this move blunted the momentum of the anti-corruption movement.
Corrupt forces rapidly moved to erase any legacy of the historic campaign against corruption in Guatemala
factors that allow corruption to go unchcked in guatemala
the president and memembers of parliaments are given immunity by law
removing this is cumbersone
before a political official can be detaikned or sbject to proceedings, the court needs to allow a commiussion to cosndier if immunity from prosecution shd be liftef
if investigations and trials are allowed to proceed, prosecutros and judges who are known to be against corrupotion must worry for their loves and families- threatened
power gros have always controlled the justice system and have aought porivilegges to evade the rule of law
Term: What position did Salvador Cienfuegos hold, and during which presidency?
Definition: Salvador Cienfuegos was the Secretary of Defense during Enrique Peña Nieto's presidency from 2012 to 2018.
Term: Who was Genaro García Luna and what was he accused of?
Definition: Genaro García Luna was a top security official in Mexico during Felipe Calderón's presidency. He is accused of offering protection to the Sinaloa cartel.
Term: What position did Salvador Cienfuegos hold, and during which presidency?
Definition: Salvador Cienfuegos was the Secretary of Defense during Enrique Peña Nieto's presidency from 2012 to 2018.
Term: What charges were brought against Genaro García Luna and Salvador Cienfuegos?
Definition: Both were arrested and indicted in New York on charges of collaborating with Mexico's drug cartels.
The cases of el chapo and the iguala massacre
these high profile cases have been hadnled in suspicisou ways- intent of those who operate in the judicial system in mexico?
mexico, el chapo, the head of the sinaloa cartel was caputred in 1993
escaped a federal max security prison in 2001,
arreested again in 2014, which eescaped through a tunnel under his jail cell
recpature again in2016 and was extradited to the us where he got a life sentence
how can mexicos judical system bring to justice powerful durg lords who obviously have connections and are known to bribe public officials
iguala case- 43 students were killed in 2014
ack of will of judiciary to shed light on this massacre
govt investitgaion during president pena nieto showed that students were seized by the police, and were handed over to a drug cartel
their bodies were burnt
ashes dumped in a stream
IACHR and a team of forensic experts from argentina questioned this report
non official reports said no fires in the area when the students dissapeared
govts investigation was questioned for not interrogating military and federal govt
then it was revealed that the suspects were dteianed arbitrarily and tortured- more tarnishing of official investigations
remained unsolved
in 2019, president andres manuel lopez obrador launched a new investigation intot the igauala massacres
created a truth and justice commission for this case
who led first investigatorion for iguala massacre- who was pres
pena nieto - 2014
who created turth and jsutice commision, to investigate what and when
in 2019, president andres manuel lopez obrador launched a new investigation intot the igauala massacres
created a truth and justice commission for this case
What has the US government pressured Mexico to address?
The US government has pressured Mexico to tackle the drug cartel problem due to its impact on the U.S.
What role does the DEA play in addressing drug cartels?
The DEA leads investigations into collusion between Mexican officials and drug cartels, as well as drug sales or money laundering linked to these cartels in the U.S.