Thousands of new generators stranded on Guayaquil docks; AG goes after Odebrecht scandal fines; Expats still coming to Cuenca; Economy declines in 2024

Thousands of electric generators are piled on Guayaquil docks and in warehouses, many of them unclaimed, according to business organizations. “There could be 20,000 there, some of them already paid for, but no one wants them,” says Fabricio Cornejo, spokesman for the Guayaquil Chamber of Commerce. “There was a rush of orders in late November and early December and then the power blackouts ended.”

Cornejo believes almost a third of the generators have been paid for, fully or in part, but buyers have not made arrangements for delivery. “Even more of a problem, many of the units were delivered from China on spec from distributors who now don’t want to pay for them.”

In November the market was overwhelmed by demand for generators but since December 20 demand has collapsed.

According to Cornejo, many of the orders were based on information provided by the national weather service (INAMHI), predicting that drought conditions would continue until March or April. “When Noboa said blackouts would end December 20, we thought he was crazy and believed they would return in late January or February. Then, of course, the rains came,” he said, adding that generators will not be needed until July or August.

“Of course we are personally happy that the situation has improved and the generators are not necessary but the incorrect report we received from INAMHI has cost businesses millions and millions of dollars,” Cornejo said.

Attorney General goes after Odebrecht scandal money
The Attorney General’s office is demanding that those convicted of receiving bribes from Brazilian construction company Odebrecht pay the fines levied at the trial. According to prosecutors, little of the $33.4 million in fines has been collected.

Among the largest debtors are former vice president Jorge Glas and his now-diseased uncle Ricardo Rivera, each owing more than $7 million. In Rivera’s case, prosecutors will demand payment from his estate.

At the 2017 trial, Odebrecht officials admitted paying bribes to eight government officials and sub-contractors, including Glas and Rivera. Of the defendants sentenced to prison, only Glas remains behind bars.

According to their convictions, Glas and Rivera participated in a scheme with Odebrecht to collect and launder bribe money.

Economy declines in 3rd quarter and for the year
Ecuador’s economy suffered a 1.5% contraction from July to September even before power blackouts were imposed. The Central Bank reported Wednesday that 14 of 20 economic indicators were lower in the third quarter. It said it excepted a greater decline from October to November, when numbers are calculated later this month.

Among the sectors suffering the largest declines in the third quarter were: business investment, down 6.2%; exports, down 5.1%; and government spending, down 1%

Earlier, the bank reported a 1% GDP decline in the first quarter and .75% decline in the second.

Based on third quarter results and expectations for the fourth quarter, the bank confirmed that the economy was in recession for 2024.

Expats still coming to Cuenca
In its annual report on in- and out-migration for 2024, the Interior Ministry said that residency applications by North Americans and Europeans remained unchanged from 2023. Based on interviews with applicants and their sponsors, the ministry said the largest number of new expats headed to Cuenca.

While noting that expats planning to live in coastal locations declined by 20% from 2023, it said those relocating to Cuenca increased by 25%. “Cuenca continues to be the top destination for foreign immigrants,” the ministry report said, citing the city’s low crime rate and large existing expat community. It estimated the number of North American and European expats in Cuenca to be 11,000.