Ecuador court upholds detention for 12 in 'Apagón' case over generator contracts

Ecuador's National Court of Justice has unanimously rejected appeals, maintaining pre-trial detention for 12 individuals implicated in the "Apagón" case concerning contracts with Progen.

The court's decision upholds the preventive detention orders issued on May 22, 2026, when the Prosecutor's Office filed charges. The Prosecutor General's Office argued that detention is necessary to ensure the defendants' appearance in court and mitigate risks to the investigation, noting that several accused are fugitives.

Among those whose detention was confirmed is former Minister of Energy, Antonio Goncalves. The court found that the evidence presented during the initial charges sufficiently indicated, preliminarily, the commission of embezzlement and the involvement of the accused.

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The precautionary measure is necessary to guarantee the appearance of the accused and avoid risks that could affect the development of the investigation.

However, the court did revoke pre-trial detention for one individual, Celso S., after the Prosecutor's Office did not oppose alternative measures. This individual must report to the Prosecutor's Office every Monday, is prohibited from leaving the country, and will be subject to electronic monitoring.

The Prosecutor's Office is investigating alleged embezzlement linked to emergency contracts for generators for the Salitral and Quevedo power plants during Ecuador's 2024 energy crisis. The investigation suggests that procedures may have been bypassed to favor Progen Industries LLC, whose offers allegedly did not meet technical, economic, or legal specifications. Contracts for Salitral and Quevedo totaled $99.4 million and $49.7 million, respectively, with an advance payment of $104.37 million, reportedly 70% of the contract value.

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The precautionary request meets the requirements established in Article 534 of the Organic Integral Penal Code (COIP).