Central America

Trial begins against 10 accused of helping Funes to appropriate more than $351 million

Photo: FGR

August 15|

In the case known as “Public Pillage” the First Sentencing Court of San Salvador, has begun this Tuesday the public hearing against 10 defendants linked to the corruption network that created the former president of the Republic, Mauricio Funes.

The Public Prosecutor’s Office of the Republic accuses for the crimes of money laundering, embezzlement (appropriation of state property) and special cases of money laundering.
The Public Prosecutor’s Office has more than 2,500 documents, 114 witnesses, financial and tax accounting experts and 21 international assistances, which were admitted in the preliminary hearing and which will begin to be evaluated by the court in the trial scheduled for one month.

The prosecutors intend to prove with financial, accounting and tax expertise that the defendants allegedly appropriated public funds that the Ministry of Finance allocated to the Presidency of the Republic for the reserved expenses between 2009 and 2014.

One of the key expertise is the accounting analysis made by an expert where he confirms that Funes in his presidential term used the mechanism of budgetary reinforcements to appropriate $351,035,400.

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This expertise called “Forensic Financial Accounting Audit of Administrative and Functional Management” shows that in the records of the Ministry of Finance, between June 1, 2009 and June 1, 2014, it appears that the budget for the Reserved Expenses item that the Legislative Assembly approved for the Presidency of the Republic was $80,818,285.

But Funes, not satisfied with these funds, devised a criminal plan to increase the secret item known as “Item 54315 Reserved Expenses” through budgetary reinforcements.

The increase was 300% equivalent to $270,217,115.49, leading him to appropriate $351,035,400.49, in his entire administration and the people who today begin to be prosecuted were part of that criminal structure, according to the accusation of the Prosecutor’s Office. Funes fled justice in 2016 to Nicaragua.

As the plan was to lose track of those funds delivered as reserved expenses to the Presidency of the Republic, from the subsidiary account of the public treasury the money began to be transferred to accounts that were in the name of private individuals in the Banco Hipotecario.

The holders of these private accounts were Francisco Rodríguez Arteaga and Pablo Gómez, who were in charge of depositing the money through checks. These two people were also part of the network used by former President Antonio Saca.

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According to the Public Prosecutor’s Office, these actions are serious because the accused violated the administrative regulations that already determine the mechanisms to be followed in the management of public funds.

The private attorneys at the time of initiating the trial have presented several petitions. One of them is a peremptory exception of res judicata in the case of Vanda Pignato.

The defense says that she was already judged in a civil trial for illicit enrichment of $135,536.15, funds with which she paid credit cards and other financial products, in that lawsuit she was absolved of responsibility and in this process of Public Plunder are the same facts accused which becomes a double judgment and that she be exonerated for the crime of money laundering.

The defense has also requested the exclusion of José Francisco Cáceres Saldaña, former private secretary of Mauricio Funes, as he was not duly granted the status of criterion witness.

They have also requested that some documents handed over by Cáceres Saldaña not be evaluated since the proper chain of custody was not followed.

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They are also requesting not to take into account a point of expertise of a financial accounting analysis made on the reserved expenses and which affects David Rivas, former Secretary of Communications of the Presidency.

THE PENDANTS

1 Vanda Pignato, former First Lady, accused by the Prosecutor’s Office of money laundering and simulation of crimes.

2 José Miguel Antonio Menéndez Avelar, owner of COSASE, accused of money laundering, asset laundering and tax fraud.

3 Juan Carlos Guzmán Berdugo, former father-in-law of Mauricio Funes, indicted for money laundering and asset laundering.

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4 Manuel Rivera Castro, former president of Banco Hipotecario, indicted for embezzlement, money laundering and asset laundering.

5 Rigoberto Palacios Panameño, former chief accountant, faces trial for embezzlement.

6 Luis Miguel Ángel García, accused of money laundering and asset laundering.

7 Francisco Rodríguez Arteaga, former financial manager of Casa Presidencial, indicted for embezzlement, money laundering and assets laundering.

8 Pablo Gómez, former technical assistant of the Presidency, accused of embezzlement, money laundering and assets laundering.

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9 Jorge Alberto Hernández Castellano, former Treasury chief of Casa Presidencial, indicted for embezzlement.

10 David Rivas, ex-secretary of Communications of the Presidency, accused of money laundering.

Related Topics:accused of helping Funes El Salvador

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Central America

Panama and Costa Rica strengthen border alliance to combat organized crime

Panama and Costa Rica strengthened a strategic alliance on Saturday aimed at enhancing border security and jointly tackling transnational organized crime, following a high-level bilateral meeting held in Paso Canoas, in Panama’s Chiriquí province, according to Panama’s Ministry of Public Security.

“The effort strengthens digital border control and enables a more effective response to organized crime,” said Frank Abrego, Panama’s Minister of Public Security. He added that “operational integration between both countries increases anticipation and response capacity to threats.”

During the meeting, Abrego and his Costa Rican counterpart, Mario Zamora Cordero, reaffirmed their commitment to deepen bilateral cooperation, particularly in territorial protection and citizen security.

Paso Canoas is a key customs hub in the region, handling goods arriving in Panama through the Panama Canal and the Colón Free Zone, which are then distributed across Central America, as well as regional exports.

Zamora described the meeting as “effective and productive,” emphasizing the importance of sustained police cooperation to confront criminal structures operating in the region.

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As part of the agenda, authorities inaugurated a new operations center for the National Border Service in the Progreso sector. The facility is designed to strengthen monitoring and control through surveillance technologies such as cameras and drones, as well as real-time information sharing between both countries.

Authorities also announced the delivery of eight vehicles to reinforce patrol operations, along with intensified joint operations at key border points.

Officials stated that these measures will increase operational presence, improve response capabilities, and enhance security for border communities.

Both ministers agreed that coordination between Panama and Costa Rica has helped maintain a “calm, stable, and developing” border, and announced further meetings, including one in San José, to advance new security agreements.

In this context, in February 2024, both countries inaugurated the Paso Canoas Integrated Control Center on the Costa Rican side, a 14,000-square-meter facility designed to streamline procedures and manage the daily flow of around 200 cargo trucks and 800 people crossing from Panama.

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The meeting brought together senior officials from both nations’ security forces, who advanced joint strategies to combat threats such as drug trafficking, human trafficking, and smuggling, through coordinated action and intelligence sharing.

This bilateral effort underscores both countries’ commitment to ensuring citizen security and sends a clear message of joint action against organized crime.

Sports

Ancelotti leaves door open for Neymar’s return to Brazil’s 2026 World Cup squad

Italian coach Carlo Ancelotti, current manager of the Brazil national football team, has opened the door to the possibility of Neymar being included in the final squad for the 2026 World Cup, according to an interview published Saturday by L’Equipe.

“At the moment, he is being evaluated by the Brazilian Football Confederation and by me. He still has two months to prove he has the conditions to play in the next World Cup,” Ancelotti said.

Neymar, 34, Brazil’s all-time leading scorer with 79 goals in 128 appearances, was left out of the most recent national team call-up for friendlies against France and Croatia. He is also still working to regain full fitness with Santos FC.

Since returning to his club, Neymar has played only a handful of matches in the Brasileirão and the Copa Sudamericana, including an upcoming match against San Lorenzo on April 28. These games could be key for him to convince Ancelotti ahead of the final squad announcement on May 19.

“Neymar has made and continues to make history in Brazilian football. He is a great talent, and it is normal for people to believe he can help us win the next World Cup,” the Italian coach added.

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When asked whether the former FC Barcelona and Paris Saint-Germain player must be at full fitness to earn a call-up, Ancelotti admitted he does not have a definitive answer but believes Neymar “is capable of returning to 100%.”

Central America

Seven arrested in Guatemala over disappearance of six near Mexico border

Authorities in Guatemala arrested seven individuals allegedly linked to the disappearance of six Guatemalans, including a 16-year-old minor, according to a police statement.

The arrests took place in the border city of Malacatán, near the nearly 1,000-kilometer frontier shared with Mexico, a region increasingly affected by criminal activity.

Police reported that ten firearms were seized from the suspects, who are believed to be connected to the disappearance of the six victims. According to witness accounts, the missing individuals worked on a farm in Malacatán and were taken away in a vehicle whose license plate matches that of the one used by those detained.

The border area has seen escalating violence involving organized crime groups. In August 2024, following the unprecedented displacement of Mexican farmers into Guatemala to escape clashes between rival drug cartels, both countries agreed to carry out joint security operations along the shared border.

Despite this cooperation, tensions have arisen. On June 8, security forces from the Mexican state of Chiapas crossed into Guatemalan territory during an anti-crime operation that left four suspected criminals dead. The incident prompted a formal protest from Guatemala, after which Mexico issued an apology.