In Guatemala, 40% of food and beverage companies suffer extortion

A survey conducted by the Guatemalan Chamber of Food and Beverages (CGAB) of 45 companies from various branches of the productive sector revealed that 40% of them are subject to extortion.

The survey showed that 75% said they had been victims of this crime for three years, while the rest have been victims for more than seven years.

In addition, the amount paid by a company is US$ 64,071 per year.

Another fact is that 50% of the companies surveyed considered that extortion increased by 10% in 2022, mainly in the metropolitan region and the south of the Central American country.

“This scourge increases operating costs and affects a significant proportion of medium-sized companies,” said Enrique Lacs, executive director of CGAB, adding that this crime is on the rise in 2023, “and no change conditions are perceived that would allow curbing the criminal phenomenon.”

COHERENT STRATEGY AGAINST EXTORTION

In 2022 there were 14,725 complaints to the Public Prosecutor’s Office for the crime of extortion, which reflects an increase of 11% compared to 2021, when there were 13,288, according to the National Economic Research Center (CIEN).

According to the CGAB, although the figures for this crime are high, the reality could be even higher as there is an underreporting of cases not documented by the authorities.

According to the report “Extortion in Central America’s Northern Triangle: Following the Money,” presented by Washington D.C.-based Global Financial Integrity (GFI), the profits made by criminal groups, mainly gangs, and maras that engage in extortion in Guatemala, are between US$40 million and US$57 million a year.

The CGAB said that in this election year, “it is important to know what actions the candidates for the presidency of the Republic intend to implement to combat this scourge” while urging to develop “a coherent strategy and government authorities to act in accordance with the law and put a stop to these criminals”.

Guatemala, El Salvador, and Honduras are the countries most affected by gangs.

Both the governments of Nayib Bukele and Xiomara Castro have implemented emergency regimes to combat them.

With information from Bloomberg