A high-profile corruption case in the Dominican Republic has concluded with a major settlement, as businessman Maxy Montilla Sierra has agreed to pay a substantial fine and dissolve his companies. Montilla carried out the operations taking advantage of his status as brother-in-law of former President Danilo Medina.
Montilla, who is implicated in the “Operation Antipulpo” case, was accused of using his businesses to fraudulently secure over RD$3 billion (approximately US$51 million) in government contracts.
The agreement, approved by Judge Raymundo Mejía of the First Court of Instruction of the National District, mandates that Montilla pay RD$600 million (approximately US$10.2 million) to the country’s three state-owned electricity distributors—EdeEste, EdeSur, and EdeNorte. The payment serves as restitution for the damages his actions caused.
In addition to the financial penalty, the settlement requires Montilla to dissolve 11 of his companies within a two-year period, including Transformadores Solomon Dominicana, S.A.S., and Electrocable Aluconsa, S.A.S.
He must also pay RD$431.8 million (approximately US$7.4 million) to the Tax Agency (DGII) and forfeit a plot of land valued at over RD$50 million (approximately US$850,000).
According to the Ministry of Public Prosecution, Montilla Sierra used his companies as a “corporate vehicle” to participate in public procurement processes in violation of state regulations. He is accused of illegally obtaining contracts by using privileged information and “exerting influence in the purchasing and contracting processes of the state.”
The prosecution stated that his privileged access allowed Montilla to create a near-monopoly of suppliers in the electrical sector, manipulating delivery times and defrauding the state. The agreement also indicates that Montilla paid bribes to public officials to gain an advantage in these processes, “seeking to influence administrative decisions, facilitate irregular contractual modifications, and expedite disbursements.”
The settlement was made possible by a plea agreement under Article 370 of the Criminal Procedure Code, which allows for a “Criterion of Opportunity” in complex cases. This provision permits the Public Ministry to seek such an agreement when a defendant provides effective cooperation, helps clarify the facts, or contributes to preventing further criminal activity.
Montilla’s legal defense was led by attorneys Joaquín Antonio Zapata Martínez and Edward Veras Vargas. Representing the energy distributors in the agreement was Celso Marranzini, president of the Unified Council of Electricity Distribution Companies (CUE), with lawyers Miguel E. Valerio Jiminián, Ramón Emilio Núñez and José Figueroa Guilamó.
The Ministry of Public Prosecution of the Attorney General Office noted that the case is part of a broader investigation into former President Danilo Medina’s close relatives, including his brother Juan Alexis Medina Sánchez and others, who are accused of a widespread corruption scheme that “impacted companies operating with functional and operational deficiencies in the fundamental service they should provide to the country.”
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El Dia
3 September 2025