Chiquita case will strengthen Colombia’s Martinez

Subject

Illicit payments scandal.

Significance

Colombia’s Prosecutor General Nestor Humberto Martinez Neira on August 31 formally indicted 13 former executives of US-Swiss fruit firm Chiquita Brands International, on charges of alleged illicit payments made to the United Self-Defence Forces of Colombia (AUC). The outcome of this case will influence how Colombia’s criminal system deals with other international firms that have operated in conflict-ridden areas.

Impacts

• As governor of Antioquia when the illicit payments began, former President Alvaro Uribe may be indicted.
• Firms embroiled in long-running probes will face serious reputational damage regardless of the outcome.
• The prospect of facing charges for paying armed groups protection money may deter future investment in rural Colombia.
• Should they gain traction, recent fraud allegations against Martinez could threaten his position as chief prosecutor.