On Thursday, Guatemala woke up to news of President Otto Pérez Molina’s resignation. For months Guatemalans have been out on the streets in peaceful protests against the country’s corruption scandals. In a region where political elites have historically enjoyed impunity, Perez’s resignation is a remarkable and unprecedented event.
Pérez has been implicated in an alleged massive tax fraud scheme that has had his former vice-president, Roxana Baldetti, behind bars since August. Details of the scheme emerged in April when the International Commission for Impunity in Guatemala (CICIG) — a team created in 2007 by the United Nations in response to a petition from the Guatemalan government — reported that custom agency officials had received millions in kickbacks in exchange for helping businesses evade customs duties. This particular scheme is known in Guatemala as “La Línea” (the line), after a telephone line supposedly used by importers to reduce or evade taxes for their merchandise. Pérez and Baldetti are allegedly part of this plot.
Last week in a special legislative session, Congress stripped Pérez of his immunity with a super-majority of 132 out of the 158 members of Congress who were present for voting. In a radio interview Thursday morning, Pérez said he was resigning to avoid any further disruptions and to allow Guatemala to move forward. He expressed his dissatisfaction with those who have judged him prematurely and who assume all allegations against him are true. Pérez reminded the public that as president he had several means at his disposal to avoid the accusations — like expelling the CICIG or fleeing and seeking political asylum. He did not remind the public of his military career as a general during Guatemala’s brutal 36-year civil war.
Corruption and tax evasion in Guatemala, and other countries in the region, have been “accepted” practices that continually challenge democracy and perpetuate inequality. In the latest round of revelations, dozens of high-level government officials have been arrested in recent months for their involvement in various corruption scandals — including central bank President Julio Suarez for his alleged role in fraudulent contracts involving the Social Security Institute.
Presidential elections are scheduled for Sunday, September 6, and the new president will take office in January 2016. As fundamental as these events are for the consolidation of Guatemala’s 19-year-old democracy, much more remains to be done. Guatemala needs to build strong, transparent institutions that promote accountability, be more effective at dismantling deeply rooted criminal organizations, and provide the necessary conditions to stop thousands of its young people from seeking a better life elsewhere.
Today, however, it is worth celebrating that Perez’s future lies in Guatemala’s criminal court. It is an important triumph for the country’s rule of law and a firm step toward redemption.
Erika de la Garza is the program director of the Latin America Initiative at the Baker Institute. Her chief areas of interest include U.S.-Latin American relations, emerging leadership, coalition building between public, private and civil society actors, and trade and business development in Latin America.