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El Salvador

Section 4. Corruption and Lack of Transparency in Government

The law provides criminal penalties for conviction of corruption by officials. Although the Supreme Court investigated corruption in the executive and judicial branches and referred some cases to the FGR for possible criminal indictment, corruption and impunity remained endemic. Courts issued inconsistent rulings and failed, in particular, to address secret discretionary accounts within the government.

Corruption in the judicial system contributed to the high level of impunity, undermining the rule of law and the public’s respect for the judiciary. As of June 30, the Supreme Court had received complaints against 46 judges due to irregularities (41 of which remained under review) and had punished one judge. Accusations against judges included collusion with criminal elements and sexual harassment.

Corruption: On September 3, El Faro accused the Bukele administration of negotiating with senior gang leaders since 2019 to obtain electoral support and a reduction in homicides prior to the February 2021 legislative and municipal elections. On September 4, the attorney general announced an investigation into El Faro’s allegations. On June 23, the FGR arrested former defense minister David Victoriano Munguia Payes and issued an arrest warrant for former president Mauricio Funes, for their alleged roles in similar negotiations associated with the 2012-14 truce with the MS-13 and 18th Street gangs.

In June, July, and August, local press reported on irregular government purchases of food, personal protective equipment, and other supplies to combat the COVID-19 pandemic that allegedly involved inflated prices, agreements with companies linked to government officials, and purchases from companies with no past experience selling the purchased products or similar products. These transactions included the purchase of $1.1 million of protective masks for allegedly inflated prices from companies associated with the newly appointed finance minister, Jose Alejandro Zelaya, and the head of the Salvadoran Environmental Fund, Jorge Alejandro (“Koky”) Aguilar Zarco; the purchase of $12 million in medical supplies from Javi Performance Parts, a Spanish automobile parts company that last filed required financial reports in 2012, and $3.5 million in medical supplies from Lasca Design LLC, a Florida-based ceramics company, neither of which have any apparent experience manufacturing or selling medical supplies.

President Bukele fired Aguilar Zarco shortly after his reported transactions became public, and as of October 19, Aguilar Zarco was the only administration official to lose his job because of pandemic-related corruption allegations. On June 26, the attorney general confirmed he had opened criminal investigations of several senior Bukele administration officials based on newspaper reports of corruption. As of October 19, the attorney general had not publicly filed charges against any of those officials.

As of June 30, the Supreme Court’s Probity Section had opened 47 illicit enrichment investigations against public officers and forwarded two cases to the FGR for potential prosecution.

On August 14, two former defense ministers, David Victoriano Munguia Payes and Jose Atilio Benitez Parada, and the former president of the National Republican Alliance (ARENA), Gustavo Lopez Davidson, were arrested on various embezzlement-related charges associated with a two-million-dollar weapons transaction in 2012. The FGR also filed charges against and issued arrest warrants for several other defendants, including former president Mauricio Funes.

As of August the Ethics Tribunal reported that it had opened 355 administrative proceedings against public officials between September 2019 and August 31. One complaint against a Supreme Court magistrate ended with the judge removed from the bench. As of September 3, the FGR had filed claims against three judges for committing crimes involving corruption or for violating public administration laws.

Financial Disclosure: The illicit enrichment law requires appointed and elected officials to declare their assets to the Probity Section of the Supreme Court. The law establishes modest fines for noncompliance. The declarations were not available to the public unless requested by petition. The Supreme Court established three criteria for selecting investigable cases: age of the case (that is, proximity to the statute of limitations), relevance of the official’s position, and seriousness and notoriety of the alleged illicit enrichment.

On July 6, local investigative magazine Factum reported that the Supreme Court Probity Section had identified $1.4 million in unjustified funds in the accounts of Walter Araujo, an outspoken Bukele supporter, legislative candidate for the political party Nuevas Ideas and former Supreme Electoral Court magistrate. As of September 14, the Supreme Court judges had not yet voted on whether to send Araujo to trial for illicit enrichment.

The law requires public officers to present asset certification reports no later than 60 days after taking a position. In September the Supreme Court Probity Section reported that 112 public officers had failed to present their assets certifications in the 10 previous years and two public officers from the current administration had failed to present their assets certification in the last year.

Guatemala

Section 4. Corruption and Lack of Transparency in Government

The law provides criminal penalties for official corruption, but officials frequently engaged in corrupt practices with impunity. There were numerous reports of government corruption during the year, including money laundering, illegal political party financing, and bribery, many of which the Public Ministry investigated and prosecuted.

To continue the fight against corruption after the expiration of the International Commission against Impunity in Guatemala’s mandate on January 21, the Giammattei administration declared the creation of the Presidential Commission against Corruption, with entry into force on January 22. Civil society organizations expressed concern regarding the new commission’s perceived lack of independence from the Giammattei administration.

As of October, Juan Francisco Sandoval, lead prosecutor for the Public Ministry’s Special Prosecutor’s Office Against Impunity, had received more than 40 administrative and judicial complaints launched by the former military group Foundation Against Terrorism, Gustavo Alejos, and former Guatemalan ambassador to the United States Julio Ligorria, among others. Three judges in the high-risk courts also incurred a litany of complaints. Civil society organizations noted the lengthy and costly judicial process for the defendants to resolve the complaints, even when the complaints themselves had little or no basis of proof.

Corruption: Former communications minister Alejandro Sinibaldi voluntarily returned to Guatemala and surrendered to authorities on August 24. Sinibaldi was implicated in the Odebrecht case, involving bribes allegedly paid to himself and former presidential candidate Manuel Baldizon; the Construction and Corruption case, in which Sinibaldi was accused of money laundering and paying bribes while communications minister from 2012 to 2014; the Transurbano security case, involving alleged siphoning of approximately one million quetzals ($140,000) from security contracts for public transit; and a case of alleged illegal campaign financing in 2011.

The Transurbano case, involving former president Alvaro Colom, 10 of his ministers, and former chief of staff Gustavo Alejos, was delayed by several complaints filed by Gustavo Alejos against Judge Eduardo Cojulum. In 2008 the ministers signed an agreement that allowed the Urban Bus Company to form anonymous corporations and begin syphoning funds from a prepaid fare program.

The case known as Cooptation of the State continued against former president Otto Perez Molina, former vice president Roxana Baldetti and her chief of staff Juan Carlos Monzon, and dozens of coconspirators for illegal campaign financing, money laundering, and illegal payments for public contracts, among other charges. Several injunctions filed by the multiple defendants continued to stall the case.

Financial Disclosure: Public officials who earn more than 8,000 quetzals ($1,030) per month or who manage public funds are subject to financial disclosure laws overseen and enforced by the Comptroller General’s Office. The financial disclosures were available to the public upon request. Administrative and criminal sanctions apply for inadequate or falsified disclosures of assets.

Honduras

Section 4. Corruption and Lack of Transparency in Government

The law provides for criminal penalties for corruption by officials, but authorities did not implement the law effectively, and officials continued to engage in corrupt practices with impunity. There were numerous reports of government corruption during the year. The government took steps to address corruption at high levels in government agencies, including arresting and charging members of congress, judges, prosecutors, sitting and former senior officials, mayors and other local authorities, and police officers. Anticorruption efforts remained an area of concern, as did the government’s ability to protect justice sector officials, such as prosecutors and judges.

Following months of negotiation, the government and the OAS did not reach an agreement to maintain the Mission to Support the Fight against Corruption and Impunity in Honduras (MACCIH), and its mandate expired in January. The Public Ministry created a new anticorruption unit, the Special Prosecution Unit against Corruption Networks, which is charged with pursuing MACCIH legacy corruption cases.

Corruption: On March 13, the Supreme Court of Justice ordered a new trial for former first lady Rosa Elena Bonilla de Lobo, spouse of former president Porfirio Lobo, who was convicted in August 2019 of fraud and misappropriation of public funds and sentenced to 58 years in prison. The Supreme Court of Justice cited the presence of MACCIH personnel during Public Ministry investigations, including in the execution of search warrants in violation of the law. A specialized anticorruption sentencing tribunal ordered her release from pretrial detention on July 23. As of September no new trial date had been set. On August 5, an appeals court dismissed charges against 22 defendants indicted in the so-called Pandora case, a 2013 scheme that allegedly funneled 289.4 million lempiras ($12 million) in government agricultural funds to political campaigns. The appeals court ruled the cases of former agriculture minister Jacobo Regalado and three members of his staff should proceed to trial.

During the year the National Anticorruption Council reported numerous irregularities in the purchase of emergency medical supplies during the pandemic. The council presented 11 reports in a series called, Corruption in the Times of COVID-19. The reports alleged illicit gains of more than 1.64 billion lempiras ($68 million) by government officials in the purchase of medical supplies. Invest-H, the agency in charge of purchasing medical supplies during the pandemic, purchased seven mobile hospitals for 1.13 billion lempiras ($47 million), more than 289.4 million lempiras ($12 million) above the manufacturer’s quoted price. The director of Invest-H, Marco Antonio Bogran Corrales, resigned from his position in July and was indicted in October on two corruption charges for embezzling an estimated 1.3 million lempiras ($54,000) in public funds and funneling a contract for mobile hospitals to his uncle. Authorities arrested Bogran on October 5 and released him on October 8 on bail pending trial. The director of the national disaster management agency, Gabriel Rubi, was removed from his position in April.

Financial Disclosure: Public officials are subject to a financial disclosure law but did not always comply. The law mandates that the Supreme Auditing Tribunal monitor and verify disclosures. The tribunal published its reports on its website and cited the names of public officials who did not comply with the disclosure law.

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