Former Comptroller General of Ecuador bribery and money-laundering scheme
Risk Mechanism
Audit, control, and sanctioning functions were compromised when Ecuador’s Comptroller General accepted bribes to remove fines and prevent sanctions on major infrastructure projects.
Case Summary
The U.S. Department of Justice reported that Ecuador’s former Comptroller General was sentenced for international bribery and money laundering after soliciting and receiving more than USD 10 million in bribes from Odebrecht. The Department stated that the bribes were paid in exchange for removing existing fines on Odebrecht projects in Ecuador and preventing further sanctions.
Risk Lesson
This case demonstrates how bribery of senior oversight officials can compromise public audit, control, and sanctioning functions by removing fines or preventing sanctions on major infrastructure projects. It highlights warning signs such as unexplained removal or reduction of sanctions, adverse findings that do not lead to enforcement action, review processes vulnerable to improper influence, and weak safeguards around discretionary sanctioning decisions.
Reference
U.S. Department of Justice. (2023). Former Comptroller General of Ecuador Sentenced for International Bribery and Money Laundering. Available from: https://www.justice.gov/opa/pr/former-comptroller-general-ecuador-sentenced-international-bribery-and-money-laundering