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A central figure in the ongoing Colombian UNGRD scandal has stated that he utilized cryptocurrency to transfer approximately $1 million in bribes to prominent legislators.
According to El Colombiano, Colombia’s Supreme Court has initiated an investigation into two former assembly leaders. They are alleged to have accepted bribes to “garner support for government reforms.”
New ‘Crypto Bribery’ Aspect of UNGRD Scandal
Prosecutors assert that former Senate President Iván Name and the ex-leader of the lower house, Andrés Calle, received payments from funds “misappropriated” from the National Unit for Disaster Risk Management (UNGRD).
The UNGRD serves as a disaster relief fund, offering humanitarian assistance to those affected by natural disasters.
The headquarters of UNGRD, Colombia’s disaster relief fund. (Source: Noticias RCN)
This case has been in progress for a significant portion of the year. However, it is the first instance where the former UNGRD officials involved have claimed to have used cryptocurrencies.
El Colombiano cited Sneyder Pinilla, the former deputy director of UNGRD, who mentioned that he “converted” a planned bribe of “around 1 billion pesos” into cryptocurrency to “evade suspicion.” The media outlet reported Pinilla as saying:
“The money was moved from one location to another using cryptocurrencies. I delivered 1,000 million pesos here. And they delivered 1,000 million pesos to me in Montería. […] Because you cannot take 1,000 million pesos on a plane to Montería.”
#Colombia Olmedo López and Sneyder Pinilla, charged in the corruption scandal at the National Unit for Disaster Risk Management (UNGRD), did not accept the charge of contract without legal requirements as alleged by the Prosecutor’s Office. https://t.co/ru5z6zBEoZ
— Periódico LA NACIÓN (@PrensaLaNacion) November 8, 2024
Calle resides in Montería, a city located in northern Colombia, approximately 780km from the capital, Bogotá. Pinilla reportedly continued:
“I had to find a way to transport the money to Montería. And what was the best method? Through cryptocurrencies. Why? Because you [take money] to one location and the next day they deliver it to you in another location.”
‘You Can’t Take That Amount of Money onto a Plane’
Pinilla stated that he purchased the cryptocurrency in mid-October of the previous year and subsequently “delivered the cash” to one of the lawmakers’ residences “on October 14, 2023.”
The court has yet to evaluate Pinilla’s statements. However, media outlets have condemned the situation as “corruption on a massive scale.”
Pinilla claims he provided Name with approximately $667,000 and around $222,000 to Calle while they were in leadership positions in the Senate and the lower house.
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Pinilla and the former UNGRD director Olmedo Lopez alleged that the lawmakers responded by committing to support President Gustavo Petro’s budget proposal for 2024.
Prosecutors indicate that Name and Calle “reportedly” intended to utilize the funds for financing their campaigns in the upcoming elections.
Lawmakers Deny Allegations
Both Name and Calle have denied receiving money from UNGRD officials. Meanwhile, Pinilla and Lopez are facing trial on separate charges after allegedly “accepting bribes from a government contractor.”
Pinilla asserted that he acted under Lopez’s instructions. Media reports suggest that Name and Calle are now “anticipated to be summoned for questioning” in the near future.
Colombian consumer prices unexpectedly fell for the first time in over three years, strengthening President Gustavo Petro’s case for further interest rate reductions https://t.co/NgAPwCu57Y
— Bloomberg Markets (@markets) November 8, 2024
However, the situation seems to have been complicated by discussions of a plea agreement between the prosecution and the former UNGRD officials.
Colombian media reports indicate that such an agreement could assist Lopez and Pinilla in receiving lighter sentences.
Escándalo UNGRD: Fiscalía imputa sexto delito a Olmedo López y Sneyder Pinilla https://t.co/QSXjkd4oOl
— IFMNOTICIAS (@ifmnoticias) November 7, 2024
Pinilla did not specify the type of cryptocurrency he allegedly utilized, nor did he clarify whether he employed a recognized crypto exchange or an underground “brokerage” service.
The timing of this revelation is particularly challenging for the Colombian crypto sector. Earlier this year, the government unveiled plans to regulate the rapidly expanding crypto industry.
In our upcoming 2024 Geography of Crypto Report preview chapter, we examine crypto adoption in Latin America. Read to discover more about crypto markets in Brazil, Argentina, Venezuela & the Caribbean. Featuring insights from @circle @BTGPactual @AaronWStanley: https://t.co/sPVXseFsuf pic.twitter.com/g0w9M7cvqy
— Chainalysis (@chainalysis) October 9, 2024
Finance Minister Ricardo Bonilla, addressing the World Economic Forum in January, remarked:
“There is much to discuss and a lot to regulate concerning cryptoassets.”
Colombia currently ranks fifth in crypto adoption within the LATAM region, according to the blockchain analytics firm Chainalysis.
The post Colombia UNGRD Exec: I Used Crypto to Help Bribe Lawmakers appeared first on Cryptonews.
