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Caribbean & Central America - March 2016 (ISSN 1741-4458)

GUATEMALA: Morales held to account over a key pledge

The discovery of another case of fraud in Guatemala’s tax authorities (SAT) last month, involving one of country’s biggest industrial companies, Aceros de Guatemala, has reignited calls to overhaul the SAT. It follows the discovery last year by the United Nations (UN)-backed anti-impunity commission in Guatemala (Cicig) and attorney general’s office (AG), of the La Línea corruption ring allegedly headed up by the former president Otto Pérez Molina (2012-2015) and his vice president Roxanna Baldetti (2012-2015), which, in an unprecedented move, forced the resignation of both. The latest case, which has also been linked to La Línea, comes amid other signs of pressure on Guatemala’s new president Jimmy Morales vis-à-vis the anti-corruption pledges he made during the electoral campaign. Together with his perceived distance from the badly discredited political establishment, these pledges were crucial to his victory.

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