DMG scandal closes in on Uribe, probe continues in Panama

DMG scandal closes in on Uribe, probes continue in several places
by Eric Jackson, from other media

It takes a lot to "rock" jaded Colombia, but to the extent that a country that has become accustomed to the most atrocious events on a regular basis can be affected by sensational news, the continued revelations of narco-paramilitary-backed DMG financial empire's connections with the top circles of Colombia's government have done that.

In the presidential palace, Álvaro Uribe was forced onto the defensive when his two sons, Tomás and Jerónimo, admitted that they had a business relationship with the jailed David Murcia Guzmán --- from whose initials the DMG organization of many companies takes its name --- making documentaries for the latter's Body Channel television network. Then it was admitted that presidential press secretary Cesar Mauricio Velásquez had personally met with Murcia Guzmán about the prospect of getting government productions on the Body Channel, talks which ended without result. Then it was revealed that Bernardo Moreno, the secretary general of the Presidencia and a cousin of one of top DMG organization lieutenant Daniel Ángel Rueda, was caught on a prosecutor's wiretap requesting a meeting with Murcia Guzmán. Then it was revealed that Félix Alfázar González, the presidential aide for dealing with municipalities, set up meetings with DMG with the Ministry of Commerce and Industry and attended a 2007 event put on by Murcia Guzmán.

All of these were atop earlier revelations that implicated top members of Uribe's political organization --- two governors, a big city mayor, a senator and an appeals judge most prominent among them --- had received money from DMG. Following the revelations about people close to the president, it was alleged that DMG financed Elite Entertaiment, a company that just got a satellite television concession from the Colombian government.

Across Colombia, raids, arrests and people turning state's evidence have been steadily fleshing out the scandal.

In one development, police raided the apartment of a high school teacher in Bogota. Edilberto Santana Cortés had been making $242 per month teaching computer science, but on paper his pay went up to $3,532.79 per month upon taking a job with DMG. Certain circumstances, however, point to more income than that: the new Mercedes and new Jeep Grand Cherokee to go with his old Mazda, a contingent of chauffers and bodyguards, real estate investments around Colombia and frequent trips to Panama. The 36-year-old Santana wasn't to be found at his house when the police came, but they did find a box containing nearly $3 million in cash, in Colombian pesos, US dollars and euros, bundled with the wrappers of a business called Transval, which was part of the DMG group of companies. Police and prosecutors say that they believe that Santana was DMG's principal book keeper. With this raid, cash seized by Colombian authorities as alleged DMG property added up to more than $11 million. That, however, is a tiny fraction of the fortune said to be involved.

Also seized in the raid on Santana's house, police say, were documents making reference to the Mexican Sinaloa Cartel, one of the organizations that has been fighting for the pieces of the battered Valle del Norte Cartel's business.

In the southern department of Putumayo, police nabbed one Marco Antonio Bastidas, allegedly one of the people who helped Murcia Guzmán set up DMG with at least $1 billion from the AUC paramilitary and its Valle del Norte Cartel drug running partners. He is believed to have been the DMG representative in payoffs to a number of politicians in and around the Caribbean coast city of Cartagena.

One of the those politicians, suspended Mayor Galo Torres of the city of Carmen in Bolivar department, has reportedly turned state's evidence and is expected to bolster prosecutors' allegations that Bolivar governor Joaco Berrío Villarreal's election campaign was funded by DMG.

In Panama, prosecutor Williams Parodi estimated the value of assets seized from DMG at about $500,000, but pointed out that there are many companies and bank accounts to be investigated and that authorities here are waiting for information from Colombia to proceed. It is alleged that the principal vehicle through which DMG laundered money in Panama was a company called Cambios y Capitales SA --- and that raises many other questions about the Torrijos administration, given that this company was listed on the US Department of Treasury's "Clinton List" of drug money laundering fronts in October of 2007 has been allowed to operate in Panama since then. The US government listed Cambios y Capitales for its ties with the Valle del Norte Cartel, and El Panama America reports that in Panama David Murcia Guzmán and his wife Giovanna Ibeth León signed the papers for transactions made through this company.

Meanwhile investigations and raids are continuing in Ecuador and Venezuela. In Caracas a special prosecutor has been appointed to handle the case. In Quito, Ecuador's Attorney General Washington Pesántez said that authorities in his country had arrested five people connected to DMG and that "we have seized millions of dollars worth of cash, vehicles and real estate."

La Prensa has reported that Harmodio Villarreal Cortez, legislative suplente for PRD deputy Franklin Rivera, is the owner of record of a Ferrari G12 Scaglietti --- price tag $325,000 --- seized from DMG. Villarreal, like many other corrupt legislators and alternates of both the ruling Democratic Revolutionary Party and the opposition, used one of his perks, the privilege to import cars duty-free, to then resell or lease the vehicles to wealthy individuals in exchange for a kickback from the ultimate user's tax savings. "There need to be exemplary penalties both for the deputies who sell their exonerations and for the private individuals who buy them," anti-corruption activist Angélica Maytín argued in a La Prensa opinion piece, but this is an old and recurring type of scandal and when it has made its previous appearances during this legislature's term neither the tax collectors nor the justice system nor the National Assembly itself has seen fit to take any action about it.

Villarreal told La Prensa that he didn't receive any money for transferring the exonerated Ferrari and that, because it's in his name, he's going to ask that the vehicle, which has been seized by prosecutors, be returned to him. Villarreal has two government jobs, one as suplente to deputy Franklin Rivera that nets him $2,000 per month, and another in mid-level management at the Banco de Desarrollo Agropecuario, which pays $1,350 per month. "I'm a simple and humble man," he told La Prensa.