Saturday, March 26, 2005
Francisco Alvarado MacDonald
Clandestine Powers: In March 2001, the Guatemalan government deposited a total of 1.2 billion quetzals (about US$157 million) in two banks – Banco Promotor and Banco Metropolitano – which were known to have serious financial problems. These “Twin Banks,” as they came to be known, were owned by Francisco Alvarado MacDonald, a close friend of President Portillo’s.
Alvarado MacDonald had bankrolled Portillo’s election campaign, co-signed the rental agreement on his mansion, and lent him money for his Mercedes Benz and for other cars used by his bodyguards.
Despite the infusion of cash, both banks went bankrupt and there were large losses for account holders and for the national treasury. In July 2001, Judge Marco Antonio Posadas Pichillá upheld a temporary motion that blocked the take-over of the banks by government authorities. Newspaper articles noted that Posadas Pichillá’s ruling overstepped the bounds of his judicial authority in order to protect Alvarado MacDonald’s interests. A counter suit was filed against the judge on charges of corruption.
In addition, Alvarado MacDonald filed a civil suit against members of the Monetary Board (Junta Monetaria), the government entity responsible for authorizing state intervention in the banks. The suit sought compensation from Monetary Board members for the losses that Alvarado McDonald suffered as a result of the Board’s intervention in the two banks. Civil judges allowed the suit to proceed.
In 2001, the General Supervisor of Tribunals (SGT) reviewed complaints against Posadas Pichillá in conjunction with his investigation of the fraud that bankrupted the “Twin Banks.” Judge Pichillá was removed from the bench as a result of the findings of the SGT. The U.S. Department of State reported that, “There were credible allegations that Alvarado MacDonald used his financial and political power to influence the handling of the case.”
Lizardo Sosa, president of the Central Bank of Guatemala and a member of the Monetary Board, firmly supported intervention in the “Twin Banks.” He was kidnapped in the early hours of February 25, 2002 while jogging near his home. The crime was widely viewed as political in nature. A ransom was paid and 72 hours later, Sosa was freed.
A few days later, a shoot-out ensued in Guatemala City, killing two army officers and wounding three members of the National Civilian Police (Policía Nacional Civil, PNC). One of the officers killed, who reportedly was dressed in civilian clothing, was shot after allegedly having shouted, “Don’t Shoot! We’re the same as you!” Government officials maintained that the incident resulted from poor communication during a joint operation. Witnesses told the press, however, that they believed the army officers were there to transport Sosa’s ransom money.
After El Periódico newspaper reported on irregularities in finance and luxury car import businesses belonging to Alvarado MacDonald, journalist Silvia Gereda was kidnapped. She was one of the main people responsible for the newspaper’s investigative reporting on these matters.
In early 2002, the United States revoked the visas of Alvarado McDonald and his two sons, Carlos Alvarado and Francisco Alvarado, under a section of the Immigration and Nationality Act pertaining to individuals currently under criminal investigation. To date, 43 charges have been brought against Alvarado McDonald accusing him of contraband, falsification of private documents, illicit granting of loans, and improper withholding, among others. Thus far McDonald has managed to avoid prosecution through the use of multiple dilatory appeals and motions. (SOURCE: Washington Office on Latin America) More from Banco de Guatemala June 2004.
Alvarado MacDonald had bankrolled Portillo’s election campaign, co-signed the rental agreement on his mansion, and lent him money for his Mercedes Benz and for other cars used by his bodyguards.
Despite the infusion of cash, both banks went bankrupt and there were large losses for account holders and for the national treasury. In July 2001, Judge Marco Antonio Posadas Pichillá upheld a temporary motion that blocked the take-over of the banks by government authorities. Newspaper articles noted that Posadas Pichillá’s ruling overstepped the bounds of his judicial authority in order to protect Alvarado MacDonald’s interests. A counter suit was filed against the judge on charges of corruption.
In addition, Alvarado MacDonald filed a civil suit against members of the Monetary Board (Junta Monetaria), the government entity responsible for authorizing state intervention in the banks. The suit sought compensation from Monetary Board members for the losses that Alvarado McDonald suffered as a result of the Board’s intervention in the two banks. Civil judges allowed the suit to proceed.
In 2001, the General Supervisor of Tribunals (SGT) reviewed complaints against Posadas Pichillá in conjunction with his investigation of the fraud that bankrupted the “Twin Banks.” Judge Pichillá was removed from the bench as a result of the findings of the SGT. The U.S. Department of State reported that, “There were credible allegations that Alvarado MacDonald used his financial and political power to influence the handling of the case.”
Lizardo Sosa, president of the Central Bank of Guatemala and a member of the Monetary Board, firmly supported intervention in the “Twin Banks.” He was kidnapped in the early hours of February 25, 2002 while jogging near his home. The crime was widely viewed as political in nature. A ransom was paid and 72 hours later, Sosa was freed.
A few days later, a shoot-out ensued in Guatemala City, killing two army officers and wounding three members of the National Civilian Police (Policía Nacional Civil, PNC). One of the officers killed, who reportedly was dressed in civilian clothing, was shot after allegedly having shouted, “Don’t Shoot! We’re the same as you!” Government officials maintained that the incident resulted from poor communication during a joint operation. Witnesses told the press, however, that they believed the army officers were there to transport Sosa’s ransom money.
After El Periódico newspaper reported on irregularities in finance and luxury car import businesses belonging to Alvarado MacDonald, journalist Silvia Gereda was kidnapped. She was one of the main people responsible for the newspaper’s investigative reporting on these matters.
In early 2002, the United States revoked the visas of Alvarado McDonald and his two sons, Carlos Alvarado and Francisco Alvarado, under a section of the Immigration and Nationality Act pertaining to individuals currently under criminal investigation. To date, 43 charges have been brought against Alvarado McDonald accusing him of contraband, falsification of private documents, illicit granting of loans, and improper withholding, among others. Thus far McDonald has managed to avoid prosecution through the use of multiple dilatory appeals and motions. (SOURCE: Washington Office on Latin America) More from Banco de Guatemala June 2004.
# posted by Pad @ 10:36 AM 
