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Ecuador Puts Former President Lenín Moreno on Trial in Explosive $76 Million Corruption Scandal

Prosecutors accuse the ex-president and his inner circle of benefiting from a massive bribery network tied to a Chinese state company behind Ecuador’s largest hydroelectric project.

2 mins read
Former President Lenín Moreno [File Photo]

Former Ecuadorian president Lenín Moreno appeared before Ecuador’s National Court of Justice in Quito on May 11 to face trial over alleged bribery and corruption linked to the construction of the Coca Codo Sinclair hydroelectric plant, a mega-project that prosecutors say generated at least $76 million in illegal payments. The case is being described as one of the most consequential corruption trials in Ecuador’s modern history, threatening to further destabilize the country’s already fractured political landscape.

According to the prosecution, Moreno played a direct role in a corruption scheme designed to favor the Chinese state-owned company Sinohydro, which won the contract to build the massive hydroelectric facility. Prosecutors allege that between 2008 and 2018, the company paid bribes equivalent to 4% of the total value of the contract through an elaborate network of shell companies, bank transfers, intermediaries, and family members connected to political elites.

The centerpiece of the alleged scheme was a company named Recorsa, which operated in Ecuador and Panama and was allegedly used to funnel illicit funds linked to lobbyist Conto Patiño, a close associate of Moreno. Prosecutors claim the money moved through checks and international transfers involving members of the former president’s family, including his wife, daughter, sister-in-law, and brothers, who allegedly participated in laundering approximately $1 million.

Authorities say Patiño and his associates received nearly $58.8 million in payments, which were allegedly distributed among relatives and lawyers connected to the network. Another group of defendants includes former public officials linked to the hydroelectric project who allegedly moved an additional $3 million through illicit channels. In total, 21 people are standing trial in the sweeping corruption case.

The Coca Codo Sinclair hydroelectric plant, inaugurated in 2016 during the government of Rafael Correa, was promoted as one of the country’s most ambitious infrastructure achievements. However, the facility has never operated at full capacity due to serious technical failures and thousands of structural cracks later identified in official audits. The project’s cost ballooned from an initial $1.979 billion to approximately $2.245 billion.

Prosecutors argue that Moreno, who served as vice president under Correa when the contract was awarded in 2009, played a key role in securing financing through the Export-Import Bank of China and helping facilitate the agreement with Sinohydro. In exchange, the prosecution claims Moreno and his associates received benefits ranging from direct money transfers to luxury furniture and expensive household items.

Moreno has strongly denied the allegations. Outside the courtroom, he insisted he had no authority over Ecuador’s energy sector and said his signature does not appear on any official contract documents. The former president also shifted attention toward Jorge Glas, who oversaw strategic sectors during both the Correa and Moreno administrations. Glas, who is currently imprisoned after convictions in other corruption cases, is expected to testify during the trial.

The proceedings have reignited political tensions within Ecuador’s left-wing movement, known as correísmo. Gabriela Rivadeneira, president of the Citizens’ Revolution movement, accused Moreno of reaching a secret agreement with the government of Daniel Noboa and the United States to guarantee protection from extradition while he remained abroad in Paraguay.

Moreno governed Ecuador from 2017 to 2021 after previously serving two terms as Correa’s vice president. Although he entered office backed by Correa’s political movement, the alliance quickly collapsed, triggering years of bitter political conflict. After leaving office, Moreno relocated abroad and accepted a role with the Organization of American States focused on disability issues. He remained outside Ecuador until returning earlier this month to confront the charges that could permanently redefine his political legacy and potentially lead to severe criminal penalties.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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