A former president of Ecuador has been found guilty of corruption and sentenced to five years in prison following a court ruling on 28 August 2026. Lenín Moreno, who led the country between 2017 and 2021, was convicted alongside 19 others in connection with alleged bribery linked to the construction of the Coca Codo Sinclair hydroelectric plant, Ecuador's largest hydroelectric facility. The 73-year-old will serve his sentence under house arrest due to his age and disability, and has already signalled his intention to appeal the verdict.
Moreno consistently denied involvement in the alleged bribery scheme. Prosecutors alleged that Sinohydro, a Chinese state-owned enterprise, channelled a total of $76.1 million (£56.2 million) through shell companies to individuals involved in securing the contract for the dam's construction. While Moreno himself was said to have received minimal funds from the arrangement, prosecutors contended that family members obtained tens of thousands of dollars.
Among those convicted were Moreno's wife, daughter and brother, as well as former plant managers, Sinohydro representatives and a Chinese ambassador to Ecuador. Those found guilty of bribery must repay three times the amount they received. Moreno was also permanently barred from holding public office, according to reporting from a major international news agency.
What was Moreno's defence?
Moreno attributed responsibility for the project to Rafael Correa, the former president under whom he served as vice-president. Correa was himself sentenced to eight years in prison in 2020 in a separate bribery case. Moreno argued that Correa had authorised the Coca Codo Sinclair project and that upon assuming the presidency, he had initiated an investigation into construction defects and other technical problems with the facility.
How was the dispute resolved?
The Ecuadorian government initiated legal proceedings against Sinohydro in 2021 after structural cracks and other technical failures emerged in the dam. The dispute was settled in April 2026 through a $400 million arbitration agreement, according to international reporting on the settlement. The arrangement comprises a $200 million cash payment and an additional $200 million allocated for generation projects. Under the terms of the deal, Ecuador retained ownership of the facility while handing over its operation and maintenance to Power China for an expected 25-year period.
What is the broader context?
Moreno is the third former Ecuadorian president to face sentencing for corruption. His conviction reflects a pattern of high-level graft investigations across Latin America. In a related development, Peru's constitutional court overturned former president Ollanta Humala's 15-year corruption sentence in August 2026, leading to his release from jail in Lima. Corruption investigations have also extended to China's leadership, with state prosecutors announcing the verdict as part of broader anti-corruption efforts.
What happens next?
Moreno has declared his intention to appeal the ruling. The conviction is being treated as a first-instance decision that remains subject to review by a higher chamber of Ecuador's National Court, meaning the legal process is far from concluded. The appeal process could take months or years to resolve.
Key Facts:
- Moreno was sentenced on 28 August 2026 to five years in prison under house arrest
- Twenty individuals were convicted in total, including Moreno's wife, daughter and brother
- Prosecutors alleged Sinohydro transferred $76.1 million through shell companies to secure the hydroelectric dam contract
- Ecuador settled its dispute with Sinohydro for $400 million in April 2026, retaining ownership while ceding 25 years of operational control to Power China
- Moreno is the third former Ecuadorian president to be sentenced for corruption
