Why the Monetary Board decided to swear in only the alternate member appointed by the USAC and not the incumbent

2023-06-14 13:00:49

Last Wednesday, June 7, the presidency of the Monetary Board (JM) swore in the economist José Rolando Secaida Morales as substitute representative of the University of San Carlos de Guatemala (Usac), but did not swear in the titular member, Juan Carlos Godínez Rodríguez, appointed by the Superior University Council (CSU).

According to Álvaro González Ricci, president of the Banco de Guatemala (Banguat) and the JM, the main reasons for declining the appointment were the prior presentation of two protections “and no one can be given possession until those protections are resolve”.

Among the known background, Godínez Rodríguez is a lawyer and a former member of the Nomination Commission to appoint magistrates of the Supreme Court of Justice. However, on July 1, 2021, the United States Department of State included him on the list of Guatemalans accused of corruption in the Northern Triangle, known as the Engels List.

legal mandate

The Banguat Organic Law states that the JM exercises the supreme direction of the central bank and is made up of the following members:

• The President, who will also be the President of the Banco de Guatemala.
• The Ministers of Public Finance; Economy; Agriculture, Livestock and Food.
• A member elected by the Congress of the Republic.
• An elected member of the business associations of trade, industry and agriculture.
• A member elected by the presidents of the boards of directors or boards of directors of national private banks.
• A member elected by the Superior Council of the University of San Carlos de Guatemala (USAC).
• These last three members will last one year in their functions.

The regulations also indicate that the members of the WB must be Guatemalans among those included in article 144 of the Constitution; be of recognized honor; and act based on the national interest and compliance with the fundamental objective of the Central Bank.

Among the functions of the JM are:

• Determine and evaluate the monetary, exchange and credit policy of the country, including the programmed goals, taking into account the national and international economic environment.
• Ensure the liquidity and solvency of the national banking system.
• Regulate aspects related to banking reserve requirements and legal deposit.
• Regulate the banking clearinghouse or any other instrument or mechanism that pursues the same purposes, among others.

Who is Juan Carlos Godinez?

• Juan Carlos Godínez Rodríguez was a member of the Higher University Council (CSU).
• He is a lawyer and was an aspiring magistrate of the Supreme Court of Justice, but was told to meet with Gustavo Alejos (former Private Secretary of the Presidency) to try to obtain the position.
• Alejos was accused of having met with judges, aspiring magistrates, deputies and members of the nomination commissions during the process to integrate the lists of aspirants to be representatives of justice in the country and was captured on February 18, 2020. .
• According to a media note Community Press published on May 12, Godínez is close to the rector of USAC, Walter Mazariegos, and has obtained contracts with that house of studies to provide professional services. Among his functions, he would advise Mazariegos in the areas of administrative, financial, budgetary and tax specialization.