BANRURAL BRANCH MANAGER SENT TO PRISON ON MONEY LAUNDERING CHARGES

Guatemala, June 4, 2013. Court B of the First Instance for High-Risk Matters ordered that Mauricio Chivichón López be prosecuted and remanded in custody for his alleged involvement in acts of corruption that took place in Antigua. Chivichón López holds the position of manager of the La Antigua branch of Banrural.

At the initial appearance, the Court ruled to prosecute Chivichón López on charges of money laundering and criminal association. The investigations undertaken by the Special Anti-impunity Prosecutor's Bureau (FECI) of the MP and CICIG established that the accused had authorized third parties to cash cheques issued illegally in La Antigua Guatemala. These cheques were allegedly used to divert town funds.

Chivichón López was arrested by authorities, who received the support of CICIG staff, on Saturday, June 1 in La Antigua Guatemala.

CICIG acts as a complementary prosecutor in this case, where Adolfo Vivar Marroquín (mayor of La Antigua Guatemala) and a further 10 individuals are being charged.

Background facts
Adolfo Vivar Marroquín and the other accused allegedly created a structure to divert town funds (between 2008 and 2012) using ghost companies they had created. Some of these companies were construction companies which were awarded over-priced projects. An alternative method used to take the town's funds involved paying its alleged employees and paying services that were never rendered.