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Ecuador

Section 4. Corruption and Lack of Transparency in Government

The law provides criminal penalties for corruption by officials, and the government took steps to implement the law effectively. Officials sometimes engaged in corrupt practices with impunity. There were numerous reports of government corruption during the year.

Corruption: The government launched or continued multiple investigations, judicial proceedings, and legislative audits of officials accused of corruption related to state contracts and commercial endeavors that reached the highest levels of government, including former vice president Jorge Glas, sentenced in December 2017 to six years in prison for committing illicit association in relation to the Odebrecht case.

In September local media outlets reported on accusations by former National Assembly staffers that legislators exchanged staff positions for personal financial benefits, including contributions to political movements, free meals, and loans. Accusations were leveled against members of various political parties, including Alianza PAIS, Creating Opportunities, Pachakutik, and Partido Social Cristiano. In response National Assembly president Elizabeth Cabezas signed agreements with the Financial Analysis Unit, Comptroller General’s Office, and Attorney General’s Office to conduct a full investigation of the accusations. On November 13, the National Assembly voted to remove National Assembly member Norma Vallejo from her position.

On May 9, the National Court of Justice sentenced former minister of hydrocarbons Carlos Pareja Yannuzzelli to 10 years in prison for the crime of illicit enrichment in relation to state oil company Petroecuador. This sentence was in addition to the sentence of five years’ imprisonment that Pareja and Alex Bravo, the former manager of Petroecuador, received in February 2017 for bribery, and the six-year sentence Pareja, former general manager of Petroecuador Marco Calvopina, and Petroecuador’s operations submanager Diego Tapia received in October 2017 for illicit association. The Second Criminal Court of Pichincha sentenced 14 other individuals to prison for bribery in relation to the Petroecuador corruption case and noted an additional 23 cases of corruption related to Petroecuador were under investigation. Trials related to the Petroecuador case continued.

As part of the February 4 national referendum called by President Moreno, citizens approved a constitutional amendment ending the statute of limitations on corruption charges and prohibiting those sentenced for crimes related to the mismanagement of public resources from running for public office or contracting with the state. In April the T-CPCCS began its evaluation of independent state bodies, as mandated by the referendum, ordering the dismissal of the leading members of the Judicial Council and National Electoral Council, among others, citing failures to perform their duties according to the law and irregularities in their decision making. As of October the T-CPCCS had dismissed 28 of the 29 individuals who were evaluated.

Financial Disclosure: Government officials are required to declare their financial holdings upon taking office and, if requested, during an investigation. All agencies must disclose salary information monthly through their web portal. The constitution requires public officials to submit an affidavit regarding their net worth at the beginning and end of their term, including their assets and liabilities, as well as an authorization to lift the confidentiality of their bank accounts. Public officials are not required to submit periodic reports, except in the case of legislators, who must also present a declaration at the midpoint of the period for which they were elected. All the declarations must be filed online with the comptroller general, whose website provides general information on the declarations and contains a section where the public can conduct a search of officials to see if officials complied with the disclosure requirements of income and assets. Access to the entire declaration requires a special application, and the comptroller has the discretion to decide whether to provide the information. There are no criminal or administrative sanctions for noncompliance, but a noncomplying official cannot be sworn into office.

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The Lessons of 1989: Freedom and Our Future