Illegal Financing of Political Parties, FCN-Nación Case (Phase 1)

Illegal Financing of Political Parties, FCN-Nación Case (Phase 1)

STATEMENT 061 | Photo: El Periódico

Following-up on the investigation of illicit electoral financing, the Attorney General’s Office (MinisterioPúblico, MP) and CICIG revealed today the irregularities in which the official party Frente de Convergencia Nacional (FCN-Nación) incurred in the 2015 electoral campaign.

In a press conference, the Commissioner Iván Velásquez Gómez and the Attorney General, Thelma Aldana Hernández, provided details of the results of the investigation to this political group, and the impeachment request filed today against the President of the Republic, Jimmy Morales, who served as Secretary General of FCN-Nación in the 2015 electoral process and until January 9, 2016.

The political party Frente de Convergencia Nacional (FCN-Nación) participated in the 2015 elections. Like all political parties, it should comply with the legal and regulatory provisions governing public and private financing of its activities and campaign.

The Secretary-General was responsible for the timely delivery of the accounting reports and backing established to make the electoral process transparent, and inform the public about the origin, amount and destination of the monies channeled to FCN-Nación.

From January 1, 2015 to January 9, 2016, the representatives of the accounting, financial and management units of the party FCN-Nación failed to comply with their obligations of accountability to the Supreme Electoral Court (Supreme Electoral Court, TSE).

FCN-Nación failed to provide the accounting registries for financial transactions related to the origin, management, and use of the collected resources, preventing the financial control of its campaign activities.


They failed to submit monthly electoral campaign reports for the periods September-October and November-December 2015, and the deadlines expired on November 10, 2015 and January 10, 2016, respectively. The party did not submit the bimonthly reports for private financing of July, September, October, November and December 2015 either.

Lectura de interés:  MP and CICIG files request to lift immunity to Guatemala's President, Jimmy Morales, and congresswoman Nineth Montenegro

Failure to comply with the preparation and presentation of necessary attachments:
Monetary contributions by members and supporters; cash for self-financing; income for financial products; income from non-monetary contributions of affiliates and supporters, and those corresponding to the integration of television advertisements and press publications.

The reports received from January to June and August 2015 included incomplete, misleading, inaccurate data, and necessary attachments were not filed or partially filed, and they do not provide financial information on the costs of the election campaign.

The information provided does not include expenses on the election day or the payment of national and international advisors, and only the party’s accountant, but not the managing parties, signed it.

Requirements of the TSE to the Secretary-General on the irregularities
The Secretary-General of the party received information through several electoral audit notes about the differences observed in the reports submitted to the TSE and regarding their inaccuracies and omissions in the mandatory reports for the last four months of the year.
A deadline was granted to clarify the differences detected on expenses not informed in the reports and for the identification of those who financed the expenses.

Breach of legal obligations and obstruction to the TSE
The minutes of November 13, 2015, initialized by the auditors of the TSE, record:

The party failed to present andconcealed the reports corresponding to September and October 2015. The party did not facilitate a review of the accounting reports and documentation regarding the permanent and electoral campaign revenues and expenses for 2015, even though the auditors requested FCN-Nación and its auditor, Ana Gloria Josefina Pérez Monterroso, several times to schedule a visit to its headquarters for this purpose.

Lectura de interés:  MP and CICIG files request to lift immunity to Guatemala's President, Jimmy Morales, and congresswoman Nineth Montenegro

The late response of FCN-Naciónopensthe possibility that the party may have incurredin illicit electoral financing due to anonymous contributions. The deadlines for submitting reports were due, and they were not admitted or considered by the TSE. It was established that FCN-Nación was not going to provide the information to the Secretary-General.

The party FCN-Nación failed to provide information, and a criminal case may be filed under article 407 “N,” paragraph 2 “Legal Electoral Financing” regarding the management of approximately four million three hundred eighty-six thousand three hundred and sixty quetzals with thirty-three cents (Q.4,386,360.33). This amount, according to the TSE, was not reported and came from unidentified sources.

At least Q2,335,252.22 was added corresponding to money deposits in the accounts of the political organization in 2015, not reported to the TSE and therefore anonymous. It was established that FCN-Nación was not going to provide the information to the Secretary-General.

The Secretary-General (legal representative of the party FCN-Nación) prevented the TSE and the public from knowing the identity of the financiers who contributed to his campaign.

Under current regulations, it may constitute anonymous financing, defined as an offense in article 407 “N” of the Criminal Code, second subsection.

Jimmy Morales Cabrera held the position of Secretary-General during the entire 2015 electoral process and until January 9, 2016, when the National Executive Committee of FCN-Nación accepted his resignation and appointed as Edgar Justino Ovalle Maldonado as his successor.

Request for impeachment
A petition for impeachment was filed against Jimmy Morales Cabrera regarding the possible commission of crimes during his performance as Secretary General of FCN-Nación.

Lectura de interés:  MP and CICIG files request to lift immunity to Guatemala's President, Jimmy Morales, and congresswoman Nineth Montenegro

Mr. Morales Cabrera, in his capacity as Secretary General of this political group may have received anonymous contributions. They failed to register these contributions to the accounting books and preventing the TSE from carrying out the control and oversight of public and private funds with regard to financing to the political organizations for permanent activities and election campaigns.



Download presentation of the conference here (spanish version).


Attorney General Thelma Aldana

Commissioner Ivan Velasquez