Central America
Trial begins against 10 accused of helping Funes to appropriate more than $351 million
August 15|
In the case known as “Public Pillage” the First Sentencing Court of San Salvador, has begun this Tuesday the public hearing against 10 defendants linked to the corruption network that created the former president of the Republic, Mauricio Funes.
The Public Prosecutor’s Office of the Republic accuses for the crimes of money laundering, embezzlement (appropriation of state property) and special cases of money laundering.
The Public Prosecutor’s Office has more than 2,500 documents, 114 witnesses, financial and tax accounting experts and 21 international assistances, which were admitted in the preliminary hearing and which will begin to be evaluated by the court in the trial scheduled for one month.
The prosecutors intend to prove with financial, accounting and tax expertise that the defendants allegedly appropriated public funds that the Ministry of Finance allocated to the Presidency of the Republic for the reserved expenses between 2009 and 2014.
One of the key expertise is the accounting analysis made by an expert where he confirms that Funes in his presidential term used the mechanism of budgetary reinforcements to appropriate $351,035,400.
This expertise called “Forensic Financial Accounting Audit of Administrative and Functional Management” shows that in the records of the Ministry of Finance, between June 1, 2009 and June 1, 2014, it appears that the budget for the Reserved Expenses item that the Legislative Assembly approved for the Presidency of the Republic was $80,818,285.
But Funes, not satisfied with these funds, devised a criminal plan to increase the secret item known as “Item 54315 Reserved Expenses” through budgetary reinforcements.
The increase was 300% equivalent to $270,217,115.49, leading him to appropriate $351,035,400.49, in his entire administration and the people who today begin to be prosecuted were part of that criminal structure, according to the accusation of the Prosecutor’s Office. Funes fled justice in 2016 to Nicaragua.
As the plan was to lose track of those funds delivered as reserved expenses to the Presidency of the Republic, from the subsidiary account of the public treasury the money began to be transferred to accounts that were in the name of private individuals in the Banco Hipotecario.
The holders of these private accounts were Francisco Rodríguez Arteaga and Pablo Gómez, who were in charge of depositing the money through checks. These two people were also part of the network used by former President Antonio Saca.
According to the Public Prosecutor’s Office, these actions are serious because the accused violated the administrative regulations that already determine the mechanisms to be followed in the management of public funds.
The private attorneys at the time of initiating the trial have presented several petitions. One of them is a peremptory exception of res judicata in the case of Vanda Pignato.
The defense says that she was already judged in a civil trial for illicit enrichment of $135,536.15, funds with which she paid credit cards and other financial products, in that lawsuit she was absolved of responsibility and in this process of Public Plunder are the same facts accused which becomes a double judgment and that she be exonerated for the crime of money laundering.
The defense has also requested the exclusion of José Francisco Cáceres Saldaña, former private secretary of Mauricio Funes, as he was not duly granted the status of criterion witness.
They have also requested that some documents handed over by Cáceres Saldaña not be evaluated since the proper chain of custody was not followed.
They are also requesting not to take into account a point of expertise of a financial accounting analysis made on the reserved expenses and which affects David Rivas, former Secretary of Communications of the Presidency.
THE PENDANTS
1 Vanda Pignato, former First Lady, accused by the Prosecutor’s Office of money laundering and simulation of crimes.
2 José Miguel Antonio Menéndez Avelar, owner of COSASE, accused of money laundering, asset laundering and tax fraud.
3 Juan Carlos Guzmán Berdugo, former father-in-law of Mauricio Funes, indicted for money laundering and asset laundering.
4 Manuel Rivera Castro, former president of Banco Hipotecario, indicted for embezzlement, money laundering and asset laundering.
5 Rigoberto Palacios Panameño, former chief accountant, faces trial for embezzlement.
6 Luis Miguel Ángel García, accused of money laundering and asset laundering.
7 Francisco Rodríguez Arteaga, former financial manager of Casa Presidencial, indicted for embezzlement, money laundering and assets laundering.
8 Pablo Gómez, former technical assistant of the Presidency, accused of embezzlement, money laundering and assets laundering.
9 Jorge Alberto Hernández Castellano, former Treasury chief of Casa Presidencial, indicted for embezzlement.
10 David Rivas, ex-secretary of Communications of the Presidency, accused of money laundering.
Central America
Mulino warns Trump: Darién is U.S.’s ‘other border’ in call for bilateral solutions to migration
Panamanian President José Raúl Mulino reiterated on Thursday that the Darién region is “the other border” of the United States and that President-elect Donald Trump must understand this, given his announcement to toughen U.S. immigration policy.
“And I repeat what I have said: he (Trump) must know that his other border, the U.S. border, is in Darién, and we need to begin solving this issue bilaterally or together with a group of countries that contribute people to the migratory flow,” Mulino stated during his weekly press conference.
The Panamanian leader added that the United States “needs to be more aware that this (the flow of irregular migrants through Darién) is their problem. These people are not coming to stay in Panama… they want to go to the United States for whatever reasons they may have.”
In 2023, more than 520,000 irregular migrants crossed the Darién jungle into Panama, a historic figure. This year, the flow has decreased, with more than 281,000 travelers making the journey by October 31, mostly Venezuelans (over 196,000), according to Panama’s National Migration Service.
“Panama is doing what it can,” Mulino said, emphasizing the country’s significant financial investment in security, medical care, and food for migrants. However, he noted, “As long as the crisis in Venezuela persists, all signs point to this continuing, with the human drama that it involves.”
He emphasized that Venezuelans make up the majority of those crossing the jungle, with 69% according to Panamanian statistics, followed by Colombians (6%), Ecuadorians (5%), Chinese (4%), and Haitians (4%). The rest come from over fifty countries worldwide.
On July 1, when Mulino began his five-year term, Panama and the United States signed an agreement under which the U.S. government covers the costs of repatriating migrants who entered through Darién. Under this program, which is funded with $6 million, more than 1,000 people have already been deported, mostly Colombians.
Central America
Ten dead in Panama due to storms causing over $100 million in damages
Ten people have died in Panama due to storms that have caused over $100 million in damages from flooding and infrastructure collapse in the last ten days, President José Raúl Mulino reported on Thursday.
The most affected areas are the western provinces of Chiriquí, which borders Costa Rica, Veraguas, and the indigenous Ngäbe Buglé comarca, due to heavy rains that have been falling for more than ten days.
During his weekly press conference, Mulino initially stated that the storm had caused five deaths, but this was immediately corrected by the director of the National Civil Protection Service (Sinaproc), Omar Smith, who confirmed that the number of deaths had risen to ten.
“What worries me are the human lives, I think we had five (deaths), how many? Ten already? Imagine that,” Mulino said.
Last year, Panama experienced a drought that led to reduced traffic through the interoceanic canal, which operates on fresh water, but the situation began to normalize this year with the onset of the rainy season, which has been abundant since May.
The president announced that the government will declare a state of emergency for the affected areas, where rivers have overflowed, homes have been damaged, landslides have occurred, roads have collapsed, and crops have been lost.
“Based on the reports I’ve received, the damage is significant,” Mulino noted.
Central America
Bukele urges Costa Rica to reform prison system amid rising crime rates
El Salvador’s President, Nayib Bukele, recommended that Costa Rica toughen its prison system, describing it as too “permissive” after visiting a Costa Rican prison with his counterpart, Rodrigo Chaves, on Tuesday at the end of an official visit.
“We believe the prison system should be less permissive, focusing more on the rights of those outside and a country’s right to security,” Bukele said after touring the La Reforma prison, located 23 km east of San José.
During Bukele’s visit to Costa Rica, the two presidents discussed different security approaches and strategies to combat organized crime. They also signed memorandums of understanding on tourism, trade, and bilateral relations.
Bukele noted the contrasts between Costa Rica’s prison system and that of El Salvador, which he reformed as part of his “war” against gangs launched in March 2022 under a state of emergency allowing arrests without warrants.
The Salvadoran president pointed out Costa Rica’s high cost per inmate, which he estimated at around $1,200 per month.
“They are spending nearly two minimum wages per inmate. It’s an injustice,” Bukele stated, adding that Costa Rica’s penal system “needs reform.”
Regarding inmate rights, Bukele suggested limiting intimate visits and TV access to prevent prisons from becoming “headquarters for crime.”
“We hope you take the necessary measures,” Bukele said about the increase in crime in Costa Rica, which has seen 757 homicides in 2024, mostly related to drug trafficking.
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