Prosecutors Target Lawyers in Odebrecht Arbitration Corruption Scheme
Nine to 25-Year Sentences Sought in Public Works Bribery Case
A sweeping corruption probe into public works arbitrations has ensnared prominent lawyers, with prosecutors demanding lengthy prison terms for their alleged roles in a criminal enterprise. The group is accused of orchestrating a scheme that benefited Odebrecht and other companies between 2011 and 2015.
Allegations of Organized Bribery in Arbitral Processes
The Prosecutor’s Office has formally accused lawyers including **Humberto Abanto**, **Richard Martín**, **Franz Kundmüller**, **Fernando Cantuarias**, and **Emilio Cassina**, among others, of participating in a criminal organization. This network allegedly engaged in serious acts of corruption specifically within public works arbitration proceedings.
Prosecutors assert that this corrupt pattern was repeated across 17 arbitration cases. The objective, according to the charges, was to unfairly favor Odebrecht and associated entities through illicit payments. This case is now known as the “Odebrecht referees” scandal.
Unraveling the Bribery Mechanism
The provincial prosecutor from the Special Lava Jato Team, **Diana Liz Canchihuamán Castañeda**, has requested prison sentences ranging from nine to 25 years and four months. The charges include criminal organization, specific passive bribery, and other related offenses.
The alleged illicit activities are directly linked to five major public works projects. These include the South Interoceanic (IIRSA SUR) Sections 2 and 3, North Interoceanic (IIRSA NORTE), the Empalme PE-5N Cuñumbuque-shoes-San José de Sisa road, and the Callejón de Huaylas-Chaca-San Luis road.
Corrupt Arbitration as a Tool for Illicit Gain
In these projects, consortiums involving Odebrecht allegedly manipulated contract terms. They sought recognition for payments not originally stipulated, achieved through fraudulent arbitration processes. The Prosecutor’s Office stated that payments totaling 17 arbitration processes were made in favor of the Brazilian construction giant.
These illicit payments, prosecutors claim, were made before or during the arbitration proceedings and involved officials from the Ministry of Transportation and Communications. Following the acquisition of economic benefits, these funds were allegedly laundered and integrated to increase the wealth of the arbitrators and officials involved in the corruption acts.
This prosecution marks the 27th formal accusation presented by the special Lava Jato team to the Judiciary for legal review. In a significant development last October, the seventh National Preparatory Investigation Court rejected a request by lawyer **Humberto Abanto Verástegui** to dismiss the criminal proceedings against him in this case.
The prevalence of corruption in large-scale infrastructure projects remains a global concern. For instance, a 2023 report by Transparency International highlighted that public procurement corruption cases often involve inflated costs, estimated to be up to 30% higher due to illicit practices (Transparency International 2023).