Dominican judge orders prison for 7 accused in $250 million government corruption scheme

SANTO DOMINGO, Dominican Republic (AP) — A judge has sentenced seven former government officials to more than a year of preventive prison as authorities investigate a $250 million corruption case involving the Dominican Republic ’s health insurance agency.

At least 10 people have been arrested in the case, including Santiago Hazim Albainy. He was appointed executive director of the country’s National Health Insurance agency in August 2020.

Hazim is accused of leading the alleged corruption scheme. Authorities say he and other officials accepted more than $31 million in bribes from representatives of medical groups that in exchange obtained contracts for services falsely provided to people who were already dead or for expensive procedures that were never provided.

The National Health Insurance agency provides services to more than 7 million Dominicans.

Three other people including businessman Eduardo Read Estrella and two private-sector executives were placed under house arrest on Sunday.

Mirna Ortiz, head prosecutor of the Specialized Prosecutor’s Office for the Prosecution of Administrative Corruption, said the case “is the most serious corruption operation that the Public Prosecutor’s Office has presented to date.”

“It is a direct attack on a fundamental right of the people. Here we are talking about money that was stolen, embezzled, from healthcare, and not just anyone’s healthcare, but from the health insurance of the poorest,” she said.

The suspects are accused of charges including collusion, bribery, fraud, embezzlement and money laundering.

“Accepting a public office with the primary objective of draining it in collusion with unscrupulous businessmen is an act of high treason against the nation,” Judge Rigoberto Sena Ferreras said ahead of his ruling.

Hazim’s attorney, Miguel Valerio, had requested that his client not be sent to prison or placed under house arrest because of health issues that have forced him to seek treatment in the U.S.

Meanwhile, Estrella’s attorneys have said he is cooperating with authorities.

The judge gave prosecutors eight months to finalize their investigation.

Ahead of Sunday’s ruling, hundreds of angry protesters gathered outside the courthouse, with some holding signs detailing the health condition of their loved ones and the troubles they faced at the health insurance agency. They also sang the national hymn, with tears streaming down many faces.