Municipal and provincial GAD
At the end of May, irregularities were revealed in the awarding of contracts for the purchase of surgical gloves, masks and rapid tests by the Prefecture of the Province of Guayas, led by Carlos Luis Morales, in addition to detecting a criminal network involving ghost companies, to which the Prefecture's contracts were awarded. Once the case is uncovered, the Social Christian Party "Partido Social Cristiano (Ecuador)") (PSC), which nominated him in the 2019 elections, and Jaime Nebot distance themselves from Morales and demand that he respond to his responsibilities, while the legislative bloc of this party asks him to resign.[62][63][64].
Meanwhile, Morales declares that he has no knowledge of the matter as he does not have time to review each prefecture contract and suspends 24 officials from the purchasing department.[65] On June 2, he files a complaint against two of his stepchildren for 17 contracts.[66] The following day, the prefect was arrested for influence peddling[67] and his wife Sandra Arcos and her children were ordered to be brought to trial. On the morning of June 4, the precautionary measures for Morales were known, such as the use of an electronic shackle and the prohibition of leaving the country.[68] That same day, Morales announced that "he hopes that all mayors and prefects have the same treatment and that this is not a political dedication", in addition to remembering the complaint he filed with the Prosecutor's Office and that involves his closest family circle. Morales also indicated that he will continue to lead his work, restructuring his work team to demonstrate to the citizens of Guayas and the Social Christian Party "Partido Social Cristiano (Ecuador)") that they were not wrong in their decision to elect him.[69].
After the capture and precautionary measures against Morales, Attorney General Diana Salazar warned on June 5 that both the prefect's wife and stepsons had possibly fled the country.[70] Likewise, the National Service for Comprehensive Care of Adult Persons Deprived of Liberty (SNAI) warned that both Morales and the other 6 involved in the Prosecutor's investigation against whom the same precautionary measures as the prefect were also issued, have not been placed the electronic shackle to which they are obliged.[71] On June 15, 2020, 23 of the members of the Guayas Provincial Council, the majority from the PSC, delivered to Vice Prefect Susana González a request to discuss the removal of Morales from the position of prefect,[72] forming on June 19 a commission that would deal with the complaint and begin the respective investigations.[73].
On June 22, 2020, the death of the prefect of Guayas, Carlos Luis Morales, due to a heart attack, was confirmed. The news was confirmed by his lawyer, Carlos Luis Sánchez.[74] Following his death, the Prosecutor's Office began an investigation to determine the causes of his death, since initially it was indicated that Morales died due to the electronic shackle that could not be removed at the Kennedy clinic in Samborondón, where he was transferred. Finally, the autopsy revealed that Morales died of natural causes, due to the heart attack he suffered and pre-existing illnesses, and that the shackle had no interference when it came to resuscitating him.[75] Carlos Luis Morales was veiled and buried in the Parque de la Paz cemetery in La Aurora, in the Daule canton, in an intimate ceremony with family and close friends.[76] Despite the death of the prefect, investigations for embezzlement and influence peddling will continue against the others. involved, among them Morales' widow, Sandra Arcos, and her children. The Morales Arcos family's lawyer announced that he will request a writ of habeas corpus to allow Arcos to voluntarily testify in court, without being detained.[77] However, the writ of habeas corpus presented on behalf of Morales' widow was rejected by the Provincial Court of Guayas on June 25.[78]
Eight days later, on July 5, a preventive detention order was issued against Sandra Arcos and her son Javier Vélez Arcos, as well as Lizbeth M. C. for the crime of influence peddling for which Morales was being investigated before his death.[79].
On July 23, the prefect of Guayas Susana González informs the Provincial Council that there are contracts with alleged overpricing, unfinished works and awards with alleged irregularities during the administrations of her predecessors Carlos Luis Morales and Jimmy Jairala. Although she did not specify how many contracts are being analyzed and in how many signs of irregularities were detected, González indicated that she did not intervene in them when she was vice prefect.[80].
At the end of May 2020, irregularities were revealed in the acquisition of rapid detection tests for COVID-19 by the Health Secretariat of the Municipality of Quito. As a result of the investigation carried out by the Prosecutor's Office where the existence of overpricing in the purchase of tests was found, the mayor of Quito Jorge Yunda removed the secretary of health, Lenin Mantilla, and other officials from their position. In this procedure, the offices of the Ministry of Health, the office and residence of Secretary Mantilla, and the offices of the rapid test distribution company were raided.[81] According to Yunda's statements, each of the tests acquired had a cost of approximately USD 25, in addition to indicating that he was the main interested party in having the facts investigated, in a letter sent to Attorney General Diana Salazar.
As a result of this fact, Yunda asked the anti-corruption commission of the "Quito Honesto" Municipality to be in charge of investigating the events, ensuring that this company has reviewed each of the contracts that the Municipality has made during the health emergency.[82].
On the night of Tuesday, June 2, the mayor reported through his social networks that the securities of the account of the Municipal Public Company of Drinking Water and Sanitation (EPMAPS) in the Central Bank of Ecuador have been "violated" and about $1,300,000 were stolen from said account. Later in a statement, the Central Bank denied Yunda, assuring that there was never a hack, however in said statement it is revealed that a series of transfers were made to several accounts abroad, mainly to accounts in the United States and Hong Kong.[83].
During the night of June 2 and the early morning of June 3, the Police and the Prosecutor's Office carried out a series of raids following the report of the disappearance of funds in the EPMAPS account. In these raids, the manager of the EPMAPS, Guido Andrade, as well as officials of the entity, were arrested. Sofía R., advisor to the manager and cousin of the vice mayor of Quito, Santiago Guarderas, was also arrested.[84].
On June 15, councilor Fernando Morales and the political activist and former candidate for Mayor of Quito, César Montúfar, filed a complaint against Jorge Yunda, the managers of the municipal companies of Public Works, Potable Water, as well as the representatives of the companies Imnoolucion and Geinco (the latter for the irregular awarding of public works contracts) for alleged organized crime and embezzlement.[85].
On July 6, a report prepared by the University of the Americas (UDLA) "University of the Americas (Ecuador)") determined that the PCR tests acquired by the Municipality are actually of the RT-LAMP type, and that they have a low sensitivity, indicating that the new coronavirus is detected when a person has more than 500 copies of the virus per microliter of blood, that is, when the viral load is high in the body. If the viral load is lower, tests conclude that a person is not sick with COVID-19, despite having the virus. Although the councilors approved the university report, Mayor Yunda denied it and reinforced his thesis of the effectiveness of the tests acquired at the beginning of the pandemic.[86].
On July 30, a report from the State Comptroller General's Office determined indications of criminal liability in the acquisition of the Municipality's PCR tests, especially in the contract signed between the Ministry of Health and the company Salumed, in charge of distributing the tests to the Municipality. According to the Comptroller's Office, there are four inconsistencies in this contract, among which stand out: the absence of a contingency plan requested by Mayor Yunda to the then Secretary of Health, Lenin Mantilla. Furthermore, the market study of the tests did not include the technical analysis of the supplies and prices offered, the need to acquire 200,000 reagents, and that the reference budget of the contract was obtained from the winning offer and not from other proposals, in addition to the absence of documentation on the other existing offers for the contract awarded for USD 3.7 million.[87].
On September 2, it joined the company Silverti S.A. in an alleged case of embezzlement in the acquisition of medical supplies by the EPMAPS at a premium. The company in question is owned by Daniel Salcedo Bonilla, prosecuted in the corruption cases of public hospitals in Guayaquil.[88].
Also at the end of May 2020, political activist Fernando Villavicencio denounced through an investigation a series of irregularities committed in the Pichincha Prefecture during the health emergency. According to the investigation, the Prefecture made purchases of 400 overpriced body bags, each costing close to USD 52, when in the market they are normally offered at USD 15, in addition to 10,000 rapid COVID-19 tests also overpriced.[89].
As a result of this complaint, the prefect of Pichincha Paola Pabón, who denied these accusations, asserting that it was an "infamous persecution" by the Prosecutor's Office,[90] was linked to proceedings for the alleged crime of embezzlement on June 1, 2020. With this, Pabón adds a third judicial process against her, after having been arrested for the crime of rebellion following the past demonstrations in October 2019. and released on December 25, 2019, using an electronic shackle to this day, and being linked to proceedings for alleged influence peddling for the signing of a contract with the company Diez Punto Comunicaciones, for carrying out a consultancy for officials of the Prefecture at a cost of $84 thousand.[91].
On April 1, the Prosecutor's Office began a preliminary investigation against the mayor of Baños "Baños (Ecuador)"), Luis Silva, for failure to comply with a legitimate authority order. Silva ordered that members of the National Police not be transferred to the city's Police Training School due to the rumor that five uniformed officers were infected with COVID-19[92], generating a confrontation and rejection of the measure by the Minister of Government, María Paula Romo, and the General Commander of the Police, Patricio Carrillo.[93].
On April 22, the Prosecutor's Office began the opening of an investigation against the Municipality of Guayaquil for the closure of the runway of the José Joaquín de Olmedo International Airport, by preventing the landing of a humanitarian flight from Madrid in mid-March during the beginning of the pandemic, which had international repercussions from European and American entities.[94] The mayor of Guayaquil, Cynthia Viteri, assured that she will assume the consequences of the measure taken and will go where has to be called.[95].
On April 23, the Prefecture of Chimborazo was raided by the Prosecutor's Office and police elements, with the aim of gathering information about alleged crimes after learning of 2 contracts for "strengthening the image" and "advertising" of the Prefecture, in the midst of the health emergency. The questioned contracts had a value of USD 345,909.[96] On May 20, the Prosecutor's Office raided the offices of the Municipality of Colta due to complaints of alleged overpricing in the purchase of supplies for fumigation.[97] Days later, on June 4, the Guamote Mayor's Office was also raided by the Prosecutor's Office for the alleged mishandling of money with which they were purchased. medical supplies to face the health emergency. The mayor of Guamote, Delfín Quishpe, did not comment on the matter, however he only stated that he would wait for the results of the investigations.[98] On September 14, the Prosecutor's Office announced the request to file charges against Quishpe, for the crime of influence peddling.[99].
On May 4, the Prosecutor's Office raided the offices of the Municipality of Machala for an investigation into the construction of a market in the midst of a health emergency, at a cost of US$7 million.[100] The mayor of Machala, Darío Macas Salvatierra, stated that the work seeks to relocate merchants evicted from the city center, and that there is no relevant evidence for the investigation. The removal of land without a signed contract at the time of starting the work is also criticized.[101].
On June 8, the Latacunga newspaper La Gaceta published a complaint about alleged irregularities committed by the Municipality of Latacunga and the Municipal Board of Trustees, regarding the purchase of supplies and food kits during the health emergency. Among the complaints mentioned are the acquisition of cleaning materials from a supplier whose RUC registered a different activity (leasing of goods and homes), totally removed from what was mentioned. The acquisition of food kits from a supplier whose RUC is dedicated only to the wholesale sale of rice and who resides in the city of Quito is also reported. On the part of the Board of Trustees, the investigation reports the existence of surcharges in the purchase of disinfection cabins, in addition to the purchase of protection and disinfection supplies from a person who is dedicated to the sale of computers. The mayor of Latacunga, Byron Cárdenas, has avoided commenting on the issue.[102].
According to the State Comptroller General's Office, there are nearly 40 prefectures, municipalities and parish governments in the country that are being investigated for contracts awarded during the health emergency. The Comptroller's Office also carried out special audit examinations of processes signed by 22 mayors' offices, eight investigations against municipal companies and institutions such as boards of trustees and the fire brigade, and two final investigations against parish governments.[103].