Bribery scandal that shook Latin America led to former Peruvian president committing suicide

Former Peruvian President Alan Garcia committed suicide yesterday after police arrived at his home to serve an arrest warrant as part of a bribery investigation. When police officers arrived at his home in the capital Lima, Garcia locked himself in his bedroom, shot himself in the head and died in hospital.

The charges against former President Garcia involve Brazilian construction giant Odebrecht, which admitted in 2016 to paying a total of $800 million in bribes to officials across Latin America in exchange for lucrative infrastructure contracts.

Revelations of bribery by the Brazilian construction giant have sparked investigations that have rocked Latin America, with many leaders in the region accused of involvement with Odebrecht.

Garcia, 69, served as president of Peru from 1985 to 1990 and from 2006 to 2011. He oversaw both periods of economic growth and recession in Peru. Last year, after prosecutors accused him of accepting bribes, he sought asylum at the Uruguayan embassy in Lima but was denied.

Yesterday morning, Peruvian authorities ordered Garcia to be detained for 10 days while they investigate allegations of money laundering, abuse of power and collusion. Later that afternoon, supporters of the former Peruvian president gathered outside the hospital where he was taken to express their grief over his death.

When information about collusion between Odebrecht and Latin American officials, including Peru, broke, former President Garcia was accused of accepting bribes to award a contract to build a subway project in Lima to the Brazilian group during his second presidential term.

In addition to Garcia, three other former Peruvian presidents are also being investigated for their involvement in Odebrecht's bribery activities.

Garcia’s predecessor, Alejandro Toledo, was accused of receiving millions of dollars from Odebrecht between 2001 and 2006. After being wanted by Peruvian authorities, Toledo fled to the United States and lived in exile. Peru has repeatedly requested the United States to extradite Toledo, but has not received any response.

Former President Ollanta Humala, who was in power from 2011 to 2016, is under investigation for accepting bribes from Odebrecht during his election campaign. He was arrested but released on bail.

Former President Pedro Pablo Kuczynski resigned in March last year following corruption allegations related to the project to build a cross-sea highway and the Olmos hydroelectric plant, which were backed by the Odebrecht Group.

In Brazil, former President Luiz Inacio Lula da Silva was sentenced to 12 years in prison for corruption and money laundering. He was also accused of taking bribes from Odebrecht.

In Ecuador, the former Vice President was sentenced to six years in prison for pocketing millions of dollars from a scandalous Brazilian construction corporation.

In Colombia, protests have been called for the resignation of Justice Minister Nestor Humberto Martinez, who is leading the Odebrecht investigation but once served as an adviser to one of the company's partners.

Odebrecht began implementing projects in Peru in 1979. The company quickly rose to become one of Peru's major construction companies, undertaking major bridge, road, dam, and highway projects.

The company built a $4.5 billion road connecting Peru’s Pacific coast ports to the Amazon basin and a subway system in Lima. Odebrecht is also behind a $1.9 billion irrigation project called Chavimochic that will irrigate a desert section of Peru’s northern coast, paving the way for asparagus and strawberry exports.