An Illicit Economy from Drugs, Gold and Corruption Casts a Shadow in Colombia
A luxurious apartment in northern Bogota, valued at nearly 5 billion pesos, serves as the latest clue for investigators untangling a massive corruption scandal linked to the former administration of Gustavo Petro. Yet, as authorities seize properties from disgraced politicians, economists and law enforcement officials are warning of a much larger crisis, a booming underground […]
Colombia is grappling with a vast, illicit economy that has infiltrated its largest cities, according to recent reports. This shadow economy, fueled by drug trafficking, illegal gold mining, and widespread corruption, is distorting the nation's financial landscape and obscuring the country's severe fiscal deficit, according to the government of President Abelardo De La Espriella.
The luxurious lifestyle of criminal syndicates is evident in the soaring prices of real estate, high-end hospitality, and extravagant vehicles in cities like Bogota, Medellin, and Cali. The Attorney General's Office has seized numerous properties belonging to disgraced politicians, including 19 homes from former congressmen Ivan Name and Andres Calle, whose assets were linked to public funds looted through corruption.
Economists estimate that 72% of Colombia's legally exported gold in 2023 was actually from illegal operations, which then proceeds through the formal supply chain. These illicit funds are estimated to make up 4.4% of Colombia's GDP, far surpassing the country's primary legal export, oil. The deputy finance minister warned that the unchecked spending of this illicit money is sparking localized inflation, particularly in the real estate market.
Written by urgent.news from Colombia One's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
