Ecuador prosecutor seeks jail for 10 in alleged corruption case

Ecuador's Attorney General Leonardo Alarcón has requested pre-trial detention for ten new individuals implicated in a corruption scheme involving public funds. The case centers on alleged embezzlement related to electricity generation contracts signed during the 2024 energy crisis. This brings the total number of people facing charges to 31, including a former Minister of Energy.

The Attorney General's office presented its request to the National Court judge, citing the risk of flight and obstruction of justice as reasons for detention. The prosecution's theory suggests that procedures were bypassed to favor the U.S.-based company Progen in the procurement process for generators. Despite identified irregularities and deficiencies, the government under President Daniel Noboa reportedly paid 70% of the contract value as an advance, totaling over $104 million, which is considered the alleged damage to the state. The company allegedly delivered non-new or incompatible generators that never became operational.

Among the 21 individuals already being processed are former Energy Minister Antonio Goncalves, representatives of Progen in Ecuador, and officials from the state-owned eléctrica Celec. The newly implicated individuals include contract administrators, former ministerial advisors, and technical and legal staff from Celec. The judge has suspended the hearing to deliberate and will announce the decision on the detention requests this Thursday. Ecuador experienced severe electricity rationing in late 2024 due to a drought affecting its hydroelectric power sources, with daily blackouts reaching up to 14 hours.