September 7, 2015

Guatemala's President Otto Pérez Molina resigned amid a corruption scandal involving a customs fraud ring, known as La Línea, and was arrested the following day.


Guatemala City, Guatemala | Guatemalan Government

Watercolor painting based depiction of Guatemala's President Otto Pérez Molina resigned amid a corruption scandal involving a customs fraud ring, known as La Línea, and was arrested the following day. (2015)

Resignation and Arrest of Guatemalan President Otto Pérez Molina

On September 7, 2015, Guatemalan President Otto Pérez Molina resigned amid mounting pressure and nationwide protests linked to a significant corruption scandal known as “La Línea” (The Line). This scandal involved a customs fraud ring that orchestrated the reduction of import taxes in exchange for financial kickbacks. The incident revealed the widespread corruption entrenched in Guatemala’s political system.

Background

The La Línea case came to public attention earlier in the year when the United Nations-backed International Commission Against Impunity in Guatemala (CICIG), in collaboration with Guatemalan prosecutors, announced their findings in April 2015. The investigation unveiled a massive customs fraud network operating within the Guatemalan government. This network involved top officials accepting bribes to facilitate the illegal circumvention of import duties. Among the implicated were high-ranking figures within the tax collection agency and close associates of President Pérez Molina.

Key Events Leading to Resignation

  • April 2015: The CICIG uncovers the La Línea scheme, prompting protests and demands for accountability.
  • May 2015: Vice President Roxana Baldetti resigns and is later arrested in connection with La Línea.
  • August 25, 2015: Guatemalan authorities issue an arrest warrant for President Pérez Molina after evidence implicates him in the scandal.
  • August 2015: Both the United States and the European Union urge Pérez Molina to step down.
  • September 1, 2015: The Guatemalan Congress votes unanimously to strip Pérez Molina of his prosecutorial immunity.

Resignation and Arrest

Faced with extensive public dissent, congressional proceedings, and legal challenges, Pérez Molina officially stepped down from the presidency on September 7, 2015. His resignation marked a rare occurrence of a serving president leaving office due to corruption charges. Following his resignation, he was promptly arrested and faced charges related to illicit association, customs fraud, and bribery.

Aftermath and Significance

Pérez Molina’s resignation and subsequent arrest were significant in Guatemala’s fight against corruption. It demonstrated an unprecedented drive towards accountability and justice, paving the way for substantial political reform efforts. However, the scandal underscored persistent issues of corruption within Guatemalan institutions, highlighting the need for continued vigilance and systemic change. Additionally, this political upheaval influenced the general elections held shortly thereafter, with many voters seeking leaders who promised transparency and reform.