Former Ecuador President Lenín Moreno Sentenced to Five Years in Prison in Sinohydro Bribery Case

Former Ecuadorian President Lenín Moreno has been sentenced to five years in prison after an Ecuadorian court found him guilty of accepting bribes linked to a multibillion-dollar hydroelectric project built by Chinese state-owned engineering company Sinohydro.

Moreno, 73, was convicted for his role in a corruption network that prosecutors said operated between 2008 and 2018 and collected illicit payments in exchange for helping Sinohydro secure a contract to construct Ecuador’s Coca Codo Sinclair hydroelectric plant. Because of a physical disability that prevents him from walking, Moreno will serve his sentence under house arrest.

The verdict adds another chapter to Ecuador’s long-running struggle with political corruption and makes Moreno the third former Ecuadorian president to receive a corruption-related prison sentence, although the offenses for which he was convicted occurred before he became president.

Bribery network allegedly tied to $2 billion project

At the center of the case is the Coca Codo Sinclair hydroelectric project, one of Ecuador’s largest infrastructure undertakings. Sinohydro began construction of the approximately $2 billion plant in 2010, with the facility handed over to the Ecuadorian government in 2016.

Prosecutors argued that a network of officials, intermediaries and other beneficiaries received bribes equivalent to approximately 4% of the project’s value. The illicit proceeds were allegedly moved through both domestic and international financial transactions before being distributed among those involved, including Moreno.

The former president was found guilty as a direct participant in the bribery scheme during his tenure as vice president under then-President Rafael Correa.

The case has also raised questions about the integrity and long-term value of the infrastructure project itself. Coca Codo Sinclair has faced criticism since its completion, particularly over reported structural defects, adding another layer of controversy to a project that was initially presented as a major step forward for Ecuador’s energy infrastructure.

Moreno’s family also convicted

The court’s ruling extended beyond Moreno. His wife and daughter, along with two brothers and a brother-in-law, were convicted as accomplices in the corruption scheme.

Moreno’s wife and daughter were each sentenced to 30 months in prison. The court also ordered those convicted to repay three times the amount they received illicitly, with the repayment required within 90 days.

The involvement of multiple members of Moreno’s family underscores prosecutors’ allegations that the bribery network was not limited to isolated payments to a single public official but involved a broader group of beneficiaries and financial transactions.

A political career overshadowed by corruption cases

Moreno’s conviction is particularly significant because of the trajectory of his political career.

A tourism entrepreneur before entering national politics, Moreno rose to prominence in 2007 when he became vice president under Rafael Correa. He remained in the position until 2013, when Jorge Glas succeeded him.

In 2017, Moreno won the presidency as the candidate of the Correísta political movement, which had been built around Correa’s decade-long presidency. Jorge Glas served as his running mate.

Moreno’s political relationship with Correa later deteriorated, however, and his presidency ultimately represented a break from the political trajectory established by his predecessor.

The current conviction concerns conduct dating back to Moreno’s period as vice president, rather than actions committed while he occupied the presidency.

Ecuador’s growing list of convicted former presidents

Moreno’s sentence places him alongside other former Ecuadorian leaders who have faced serious corruption allegations.

Rafael Correa, who governed Ecuador for roughly a decade, was sentenced in 2020 to eight years in prison in a bribery case involving Brazilian construction giant Odebrecht. Correa has remained in Belgium, where he has lived for several years.

Former President Jamil Mahuad was sentenced in 2014 to eight years for misuse of public funds.

Meanwhile, former President Abdalá Bucaram, who has also faced allegations of corruption, is awaiting sentencing after being convicted of organized crime.

Jorge Glas, Moreno’s former running mate, is likewise serving a prison sentence for corruption.

The succession of cases involving former heads of state and senior political figures highlights the extent to which corruption investigations have become intertwined with Ecuador’s political history.

Wider implications for infrastructure and financial crime

The Moreno case also illustrates the complex financial structures that can emerge around large public infrastructure projects.

A project worth billions of dollars can involve governments, state-owned enterprises, contractors, intermediaries, financial institutions and politically connected individuals across multiple jurisdictions. Prosecutors’ allegations that the illicit payments were routed through domestic and international transactions demonstrate how bribery proceeds can move beyond the country where the underlying corruption occurred.

From an anti-money-laundering and financial-crime perspective, such cases underline the importance of identifying beneficial ownership, politically exposed persons, related parties and unusual cross-border financial flows when dealing with major government contracts.

The case also illustrates why corruption risks cannot necessarily be assessed by looking only at the company awarded a contract. Networks of relatives, intermediaries and other beneficiaries may become part of the financial ecosystem surrounding a politically exposed individual.

A significant verdict for Ecuador

Moreno’s five-year sentence represents a major judicial development in Ecuador, particularly given his status as a former head of state and his family’s alleged involvement in the scheme.

The court’s decision also reinforces a broader pattern in Ecuador in which former political leaders have increasingly faced prosecution and imprisonment over alleged misuse of public resources and bribery.

For Ecuador, the case is ultimately about more than the conviction of one former president. It raises continuing questions about political accountability, corruption in major public infrastructure projects and the ability of institutions to trace illicit financial flows across borders.

With Moreno now ordered to serve his sentence under house arrest and his family members facing their own penalties and repayment obligations, the Sinohydro case adds another prominent name to Ecuador’s growing record of former leaders held accountable for corruption.