Ecuador: 10 New Detainees in 'Blackout Case' Over Faulty Power Contracts

In the ongoing 'Blackout Case' in Ecuador, a judge has ordered pre-trial detention for 10 additional individuals implicated in irregularities surrounding contracts with the company Progen. This brings the total number of people facing charges for alleged embezzlement to 31. The Fiscalía General del Estado is scrutinizing contracts awarded for the acquisition of equipment intended for the Salitral and Quevedo power generation plants during Ecuador's energy crisis in 2024.

The contracts in question were awarded to PROGEN Industries LLC. The investigation centers on approximately $104.37 million, representing 70% of the total contractual value for both agreements, which is considered the alleged state loss. The Fiscalía's probe is examining several critical aspects of the contracting process and execution, including instances where formal emergency declarations were bypassed, legal and technical observations were allegedly ignored, and contractual delays occurred without proper justification.

Specific contracts under scrutiny include those for generators for the Salitral and Quevedo power plants. The Salitral contract amounted to $99.4 million, while the Quevedo contract was valued at $49.7 million. A significant portion, 70% of these amounts, was disbursed as an advance payment. The investigation also considers potential breaches related to the specifications and conditions of the acquired equipment, alongside reported delays during contract fulfillment.

The 10 individuals newly detained include directors and managers from CELEC EP and TermoPichincha, legal advisors, contract administrators, and representatives from associated companies like AstroBryxa S.A. Their alleged roles range from authorizing contracts to overseeing their execution. The case remains under investigation, with authorities tasked with determining responsibilities based on the evidence gathered.