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. Taking Advantage of a Weakened and Increasingly Corrupt<br />

Ecuadorian Judiciary<br />

87. The RICO Defendants have been able to influence the proceedings because the<br />

independence and integrity of the Ecuadorian judiciary has eroded to where it is now greatly<br />

susceptible to these tactics, and to pressure from outside and through the executive branch.<br />

Indeed, the Ecuadorian presidency now wields de facto control and near-autocratic power over<br />

all Ecuadorian institutions.<br />

88. Various sources confirm the political branches' domination over Ecuador's<br />

judiciary in recent years and the judiciary'S system-wide corruption. For example, the World<br />

Bank's Worldwide Governance Indicators for 2009, compiled from 21 independent sources,<br />

ranked Ecuador below the 10th percentile of all countries surveyed with respect to the "rule of<br />

law"-down from the 31 st percentile in 2003. Ecuador's negative score is -1.28, which places it<br />

below North Korea (-1.25).<br />

89. The U.S. Department of State's annual Human Rights Report published in<br />

March 2010 also noted that "there continued to be serious problems" in Ecuador with respect to<br />

"corruption and denial of due process within the judicial system" and that the judiciary was<br />

"susceptible to outside pressure and corruption." Similarly, as recently as July 15, 2010, the UN<br />

Special Rapporteur on extrajudicial executions described Ecuador's judicial system as "almost<br />

universally condemned for its inefficiency and mismanagement."<br />

90. Among the means by which President Correa has established his control over the<br />

judiciary is a policy whereby he has caused the issuance of a memorandum instructing all of his<br />

ministers that should any Ecuadorian court enjoin their ministry, and if the ministry is able to<br />

overturn the injunction on appeal, the ministry is to immediately sue the judge who entered the<br />

injunction personally for damages.<br />

91. There are numerous examples of this corruption and undue influence on display<br />

in the Lago Agrio Litigation. While he was presiding over the trial, Judge Nunez publicly stated<br />

that the Lago Agrio Litigation had "taken too long" immediately after a two-hour luncheon with<br />

40

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