President Bernardo Arévalo described the B410 case as “the biggest tax fraud in recent times” and ordered the National Commission Against Corruption to review the contracts that are still in force in the State.
These projects were initiated during the previous government, but they are still in place to receive payments from the Executive if they are not stopped.
“I have instructed the National Commission against Corruption to thoroughly review the contracts of the companies in question with the State, as well as to develop new purchasing protocols and regulations regarding final beneficiaries, so that this story never happens again,” said Arévalo on Monday, August 19, at a press conference.
The president added that, due to the seriousness of the tax fraud case, the government will periodically monitor the contracting companies.
“We are committed to carrying out regular monitoring to keep the population informed about our findings, regardless of who is killed,” the president said.
The Office of the Attorney General of the Nation (PGN) appeared as the aggrieved party in the case presented to the Public Ministry (MP).
The Attorney General of the Nation, Julio Saavedra, reported that the legal situation of each of the contracts will be analyzed before deciding whether or not the bond can be executed.
“Decisions are then made based on the legal analysis of the State in which each contract is located. As for the execution of bonds, this is an administrative decision that the authorities make precisely as a consequence of the legal analysis that is carried out in each of these cases,” explained Saavedra.
In this case, the Superintendency of Tax Administration (SAT) reported 410 companies that allegedly evaded paying taxes and that, as a whole, said fraud is estimated at around Q300 million, although that figure could reach Q800 million.
According to the SAT, of the companies reported, more than 200 identified as their tax domicile an address in the Bamvi neighborhood of zone 7, which in reality does not exist, but that was not an impediment to obtaining million-dollar contracts with the State during the government of Alejandro Giammattei.
He #CasoB410 reveals the biggest tax fraud in our history. We will not allow corrupt structures to continue operating with impunity.
I have instructed the @CNCguatemala a thorough review of contracts and new protocols to prevent this story from repeating itself. The MP must…
— Bernardo Arevalo (@BArevalodeLeon) August 19, 2024
#Government #offers #exhaustive #review #contracts #accused #companies
