Prosecutors charge Jorge Glas and eight others with embezzling earthquake reconstruction funds, sparking legal battles and diplomatic tensions.

The Ecuadorian Attorney General’s Office has formally charged former Vice President Jorge Glas and eight other individuals with alleged embezzlement related to funds intended for reconstruction efforts following the devastating 2016 earthquake. Glas, already serving an eight-year prison sentence for corruption, is currently held in La Roca, Ecuador’s maximum-security prison.

Prosecutors Move Forward with Case

On Friday, March 14th, the Attorney General’s Office announced its official accusation, arguing that Glas and others misused public funds meant for post-earthquake reconstruction. Among the accused is former minister Walter Solís, who currently holds refugee status in Mexico. Another key figure implicated is Boris Córdova, Solís’ successor in office.

According to prosecutors, funds collected for emergency relief and rebuilding efforts were instead allocated to projects that failed to meet the legal criteria of necessity, urgency, and immediate need. This misallocation allegedly benefited third-party contractors and supervisors, raising serious concerns over the handling of public resources in the wake of a national disaster.

Background: The 2016 Earthquake and Reconstruction Efforts

The 7.8-magnitude earthquake that struck Ecuador on April 16, 2016, severely impacted the coastal provinces of Manabí and southern Esmeraldas. The disaster left more than 670 people dead, thousands injured and caused billions in property damage. In response, the government created the Reconstruction and Productive Reactivation Committee, led by Glas, to oversee the rebuilding process.

To finance reconstruction, the government enacted the Organic Law of Solidarity and Citizen Co-responsibility, which generated over $1.6 billion through public donations and a temporary 2% increase in the value-added tax (VAT). Initially, 584 projects valued at $367 million were prioritized under this program.

However, the Attorney General’s Office alleges that a significant portion of these projects did not align with the emergency relief law’s objectives. Some projects were reportedly planned years before the earthquake but were nevertheless funded under the emergency reconstruction program. Prosecutors argue that Glas and his co-defendants knowingly directed funds toward these non-emergency initiatives, effectively misusing resources meant for disaster recovery.

Legal and Political Ramifications

The hearing, which was initially set for Friday, was adjourned to allow the defense to present its arguments before a judge determines whether to proceed with a full trial. Glas maintains his innocence, claiming that the charges are politically motivated and part of a broader strategy of “lawfare”—the use of judicial processes to target political opponents.

Glas, a key figure in former President Rafael Correa’s administration (2007-2017), has been a central target of anti-corruption investigations. In late 2023, as the Prosecutor’s Office prepared new charges against him, Glas sought refuge in the Mexican Embassy in Quito. He remained there for nearly four months until Ecuadorian police controversially raided the embassy and forcibly detained him, an action that triggered a diplomatic crisis between Ecuador and Mexico. Both nations have since filed legal complaints against each other at the International Court of Justice in The Hague.

Human Rights Concerns

Following Glas’ detention in La Roca, the Inter-American Commission on Human Rights (IACHR) issued a directive urging Ecuador to improve his medical and psychological care, citing concerns from his legal team that he may be at risk of self-harm. The commission also recommended transferring him to a different prison facility with conditions more suited to his health needs.

As the case unfolds, it remains a flashpoint in Ecuador’s broader fight against corruption and political accountability, with implications for both domestic governance and international relations.