invitation from the Beijing city government.88 On June 18, 1998, a report on the trip went to the City Council
of La Paz. The report stated that during the trip, a contract had been signed for the purchase of street lamps
for the city of La Paz, street paving and construction of bridges.89 The contract for the street lamps was with
the firm XUZHO, a State-owned company with private participation, and that a mixed (commercial) line of
credit from the Bank of China was involved.90
124. On June 29, 1998, the President of the City Council, Ms. Andrade Salmón, received a note
from the Mayor enclosing the signed contract for the purchase of 80,000 street lamps. The then Mayor was
asking for the City Council’s clearance.91 On August 3, 1998, the City Council approved the contract for the
purchase of street lamps, through a resolution signed by Ms. Andrade, in her capacity as President of the City
Council, and Mario Tapia Acosta, as Council Secretary.92 However, the letter of transmittal from the Mayor to
the Council seeking the latter’s approval of the contract did not include an addendum that he had signed on
May 19, 1998, with the representative of the XUZHO company in which the cost of the contract was increased
by US$ 2,260,000, to include spare parts and bulbs.93
125. On October 19, 1998, Mayor Germán Monroy asked that the contract’s processing be
ordered, which was done and a check was made out for the sum of US$5,595,520.00 from the Government of
La Paz to the XUZHO company. On November 18, 1998, the Vice Minister of the Treasury and Public Credit of
the Treasury Ministry sent a note to the City Mayor’s Office in which he advised that any budgetary change
made by the Mayor’s Office had to be approved by the City Council and that the debt ceiling had been
reached.94
126. On December 22, 1999, the La Paz Sub Comptroller of Legal Services and the Departmental
Manager submitted a report to the Sub Comptroller of Legal Services of the Comptroller General of the
Republic, as the latter had requested a legal opinion concerning certain aspects of the contracting process and
the contract signed with the Chinese firm XUZHO (Internal Communication No. GDC/CI-160/99). The report
cited a number of illegalities and irregularities and established that some officials may bear criminal liability
for those illegalities and irregularities.95 On the matter of the possible culpability of Ms. Andrade, former
President of the City Council and then Mayor of La Paz, the report stated that while she did sign City
Resolution No. 179/98 of August 3, 1998, under which the contract was approved, under the Internal Rules of
Procedure of the City Council of La Paz, its President did not vote except in the case of a tie (Article 33); under
Article 37 of the Municipal Governments Act, the President of the City Council has the authority to “sign
88
Annex 104. Resolution 62/2011 of the Capital’s Criminal Examining Court (Liquidador), dated December 15, 2011. Attachment to the
petitioners’ communication of February 14, 2011.
89
Annex 56. Resolution No. 123/2002, the Capital’s First Criminal Examining Court (Liquidador), Final Instruction, December 11, 2002.
Attachment to the State’s brief of June 4, 2003; Annex 67. Report and request from the Public Participation and Decentralization Commission
in the following matter: complaint against former La Paz Mayor Germán Monroy Chazarreta, Honorable City Council Members Lupe Andrade
Salmón, Julio Mantilla Cuellar, Cesar Augusto Sanchez Fuentes,… February 11, 2000. Attachment to the State’s brief of July 14, 2004.
90
Annex 67. Report and request from the Public Participation and Decentralization Commission in the following matter: complaint
against former La Paz Mayor Germán Monroy Chazarreta, Honorable City Council Members Lupe Andrade Salmón, Julio Mantilla Cuellar, Cesar
Augusto Sanchez Fuentes,… February 11, 2000. Attachment to the State’s brief of July 14, 2004..
91
Annex 56. Resolution No. 123/2002, the Capital’s First Criminal Examining Court (Liquidador), Final Instruction, December 11, 2002.
Attachment to the State’s brief of June 4, 2003.
92
Annex 66. La Paz City Council Resolution No. 179/98 of August 3, 1998. Attachment to the State’s brief of June 16, 2004; Annex 56.
Resolution No. 123/2002, the Capital’s First Criminal Examining Court (Liquidador). Final Instruction, December 11, 2002. Attachment to the
State’s brief of June 4, 2003.
93
Annex 69. GDL3/A523/D9, Report to the Under Comptroller of Legal Services of the Office of the Comptroller General of the Republic,
dated December 22, 1999. Attachment to the State’s brief of June 14, 2004.
94
Annex 56. Resolution No. 123/2002, La Paz’ First Criminal Examining Court (Liquidador), Final instruction, December 11, 2002.
Attachment to the State’s brief of June 4, 2003.
95
Annex 69.GDL3/A523/D9,Report to the Under Comptroller of Legal Services of the Office of the Comptroller General of the Republic,
dated December 22, 1999. Attachment to the State’s brief of June 14, 2004.