Courts Revoke Genaro López’s Provisional Detention Ordering him to be Placed Under House Arrest

The Superior Court of Appeals revoked the provisional detention order imposed on Genaro López, leader of the National Union of Construction and Related Industry Workers (Suntracs), and instead imposed the precautionary measures of house arrest, prohibition against leaving the country, and the wearing of an electronic bracelet.  During a hearing held at 2:00 p.m. on Thursday June 5 Judges Fernando Alonso, Frank Torres, and Yiles Pitti ruled that the ruling was sufficient to keep the defendant bound over to the proceedings.  Genaro López is charged with the alleged crimes of aggravated fraud, money laundering, criminal conspiracy, and document forgery, against a group of workers affiliated with Suntracs.  Attorneys César Ruiloba and Javier Quintero argued that the provisional detention measure imposed on López was excessive, and emphasized that their client voluntarily surrendered to judicial authorities.

For her part, the specialized prosecutor against organized crime, Isis Soto, deemed it necessary to maintain provisional detention.  López is being investigated following a complaint filed in 2022 by former workers on a construction project located on Bastimentos Island, Bocas del Toro province, who were affiliated with Suntracs.  This case dates back to 2006, when a labor dispute arose between workers affiliated with Suntracs—who were developing the Red Frog Beach Club project on Bastimentos Island, Bocas del Toro—and the company Pillar Construction SA, responsible for the work.  The dispute culminated in an agreement in which Pillar Construction agreed to pay $5.7 million in compensation and $1.3 million in legal costs to the workers. 

According to the prosecution’s version, in 2012, Suntracs executives Genaro López, Saúl Méndez, and Erasmo Cerrud signed an out-of-court settlement with Pillar Construction to receive only $3 million, without notifying a group of 412 workers who were to receive the funds.  According to the prosecutor’s investigation, it was established that approximately 310 workers, who received severance pay as part of the compensation agreed upon with the company, did not receive the amounts to which they were entitled.  “This is a small, first victory we’ve achieved. We believe in our colleague’s innocence,” said the union’s organizing secretary, Yamir Córdoba, outside the courthouse. “The fight is a fight!” shouted Suntracs workers gathered at the courthouse located in Plaza Fortuna, San Miguelito district.