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Comptroller establishes indications of criminal liability against Correa
Posted On 10 Apr 2018
Ecuadornews:
The Office of the Comptroller General of the State has established indications of criminal responsibility against former President Rafael Correa. The Office of the Comptroller General had the same indications of Correa’s responsibility to the former economics ministers Patricio Rivera and Fausto Herrera.
Also against ex-sub-secretaries of Public Financing; former National Director of Monitoring and Evaluation of Public Financing; and the former General Legal Coordinator of the Ministry of Economy and Finance.
According to the Comptroller General’s Office, Executive Decree 1218, signed by Correa, established a methodology for calculating the Debt / Gross Domestic Product (GDP) ratio that allowed the acquisition of new debt without the approval of the Assembly.
The report also questions the following acts of the economic authorities of the past period:
They maintained and applied resolutions regarding the quality of secret and reserved documentation related to debt operations that differ from the legal system.
The requirements for contracting public indebtedness were exceeded once its limit was exceeded.
They did not record oil pre-sale operations as debt, even though they were paid even by paying monetary values and generating interest payments to the State.
The internal debt as a whole was not considered in the statistics, without there being evidence of its payment.
The reduction was made when the public debt was about to exceed the legal limit established in the COPLAFIP, which enabled the contracting of credits without complying with the legal norm.
The Comptroller’s Office has ordered the Ministry of Economy and Finance to repeal the ministerial agreements and other resolutions on the reserve of debt operations.
The report also questions that oil pre-sales have not been accounted for as debt and recommends managing the repeal of the institutional cooperation agreement with China, and that the Ministry of Hydrocarbons provide that, if credits are required, these will be limited to the object and mission of Petroecuador .
The Office of the Comptroller General also ordered special examinations to:
Especial examination to the issuance, placement, payment and / or exchange of Treasury Certificates.
Especial examination of financial conditions, terms, guarantees, commissions of public debt operations.
Especial examination to the payment of the shares of the public bank to the Central Bank.
Especial examination to the hiring of lawyers and agents for debt operations (placement of sovereign bonds)
Especial examination to the investment of monetary gold and global bonds with Goldman Sachs.
Especial examination to public service debt (capital, interest, other financial costs).
Especial examination to the use of the resources coming from the indebtedness operations. (I)
