New CABEI Leadership Promises Reform
Drawing on the record of governance concerns documented by reporters, civil society is calling on the Central American Bank for Economic Integration (CABEI) to commit to reform. New leadership at the bank has taken notice and committed to making improvements.
In late 2023, with support from GACC, OCCRP and 13 media partners from Latin America, Korea, and Taiwan published The Dictators’ Bank, an in-depth investigation into CABEI. This series unveiled troubling practices within CABEI, including misuse of funds, potential conflicts of interest, and breaches of procurement rules. For instance, investigative journalists found that El Salvador’s President Nayib Bukele redirected $200 million from a CABEI loan—originally intended to support small and medium-sized enterprises during the pandemic—toward a controversial Bitcoin initiative. To disseminate the findings, GACC and its media partners CLIP and CJI organized a bilingual public webinar.
Following the investigations, Transparency International (TI) marshalled its global network. Ten chapters from countries with seats on CABEI’s board published a joint letter advocating for urgent reforms. Several Central American chapters have engaged with CABEI’s leadership, spoke to OCCRP’s findings, and provided recommendations prompting a verbal commitment by the bank to internal reform and review of past projects.
Gisela Sánchez Maroto, who was elected as CABEI’s Executive President last November, detailed the ongoing and planned changes in a recent interview with OCCRP’s partner Redacción Regional. These commitments include conducting a review of all projects over the past decade with signs of any irregularities, including all those that had been identified by OCCRP and partners – a measure pushed by TI in its recommendations.
“I read all the reports that you and OCCRP prepared and clearly, when one turns back the clock, there are opportunities to improve the project design and supervision,” Sánchez said. “In the coming months, years, I hope to produce a stronger and renewed CABEI, and in which all of you can fully trust.”
The months ahead will determine whether these promises lead to a changed approach, as CABEI works to fulfil its crucial mission advancing the wellbeing of Central America’s people.
