Iratelligence Report
Office ofTransnational Issues
The Illicit Enrichment of Vladimiro MontesinosH
A Research Paper
This assessment was prepared by ibe Office of Transnational Issues, with COTtrlbutlons ft"'" IK-vian Pacific and Latin American Analysis.!
Tbe Illicit Enrichment of Vladimiro Montesinos
Findings
ilable
aso/JuaaTOOI
was used ia this rtpan^
Montesinos-
Tones, former Peruvian National Security Adviser and de facto head of the National Intelligence Service,lobal network of bank accounts and front companies to move and hide ill-gotten assets since the.
These funds largely came from illicit sources. Montesinos generated
Revenue from payments from drug traffickers, defense con-tract klckbaclcs, embezzlement of public funds, money laundering, Peru's privatization process, and fees to "fix" various legal matters for his associ-
The scale of Montesinos' theft has prompted Peru to adopt severalanti-money laundering measures. Nonetheless, past US association with Montesinos has hurt US credibility on democracy, judicial reform, and ccmnterdrug efforts in Peru, and might fuel bilateral tensions in futureNationalists in Peru's newto take power inmay withhold support for some counterdrug programs if they perceive that the United States has not done enough to bring Montesinos to justice.
Brnoi
Defense Contract Kickback*
llegedly received millions in kickbacks for spearheading Peru's purchase ofsedah ten andiiack aircraft from Belanu2 mil.ionccording lo the testimony bef ore Peruvian aurtmrttiM of Moote&iac* cronyVcnero. Peruillion for eatenighter, when ihe actual coat for each was SS million. Monicsinosillion for each aircraft, urn lolal0 million. Deipiie the high price, Ihe MiGs had an ttwclyn.ii.nnal rate.
]lronically, one MiG craritnTTiTTnfflrpT
congressional investigators in
Montcilnos' kickbacks from lhe purchase wereinto ii Panamanian hank, probably Bancoby two firms that acted as lhe middlemen in lhe deal (he Bahamas registered firm Treves Intora1ornoruun of Peruvian amuio press reports. In Matcheruvian delegation traveled to Panama tn loquesi Ihe freezing of bank account* associated with theeal.
Nacrel^
?>xr^t^
in Panama. The numerous transfers suggest that Peruvian authorities involved in the deal were attemptingonceal the on gin of lhe funds thai probably were not spent on repairs.)
against those who
Micj-zy purchase, indicating thai he had a
Mo
opposed the personal interest in seeing ibe deal succeed.
Credible in formal ion indicates lhai Ininm drew uponigh-level contacts within lhe Peruvian Goverrunert -pro-abl}to ovtmanesj ver anotherPeruvian firm ud win the deal P
Aflcr the pureillion was taken8 from Peru's privatizationultimatelyank inrepair ihe dilapidated MiGs.
In April HHil. Ihe Peruvian legislative commission investigating the misuse of privatization proceed* tbseovcrci] thai SV) million in privatization fundi had been transferred to Swiss Bank Corporatton and accounts at US hanks tn Florida and Newtsi reports. Thetrr-nrl. werereves Intora at Banco Fjtierior
Moniesinos also allegedly receivedandmillion in kickback* from Peru's9 purchase of threerom the Russian state-owned arms company Rosvoorouihcnic7 million, according to press reports. The contract included repair pans, services,echnicalagreement to support the MiGs acquired6
The kickbacks were deoosiled on behalf ofinto five Swiss bank accounts
Peruvian bom arms dealer and close Mori-associale who served as the middleman for
the purchase. Swiss auihorilles froze the five accounts alj
In1 tesiimony before the WaismanVictor Alberto Vcncro Garrido revealed thai he paidillion id Mtinlcsinos as commisMuns so that bis companies would win bids on various projects and for purchasing equipment tor ihe armed forces, according io press reports
"secret^
Original document.
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