Guatemala ex-VP to be imprisoned during corruption trial

GUATEMALA CITY (Reuters) - Former Guatemalan Vice President Roxana Baldetti will be held in jail throughout her trial over an alleged customs racket, a judge ruled on Wednesday. Baldetti, who was arrested on Friday, has been charged with illicit association, bribery and fraud over a customs racket she allegedly led with President Otto Perez. On Tuesday, Guatemala's Supreme Court approved a petition by the attorney general to impeach Perez over the scam. Congress must still give its approval if he is to face prosecution. Perez has rejected the charges and has said that he will not resign. Baldetti, who stood down in May over the scandal, has also denied any wrongdoing. Under the alleged racket, known as La Linea, or "the line," after a phone hotline that played a key role, importers were able to avoid paying customs duties in exchange for bribes, which investigators say were distributed to officials. Guatemala, which is preparing for a presidential election next month, has been beset by corruption scandals this year. Baldetti, 53, will be moved to a women's prison within three days, the judge said. Her trial is due to start in December though preliminary hearings are already underway. The defence had argued Baldetti should be freed while she stands trial, but the judge denied the request, saying that she could flee or obstruct the investigation. The prosecution had argued that Baldetti could escape to Italy because she holds citizenship there. (Reporting by Enrique Andres Pretel; Writing by Joanna Zuckerman Bernstein; Editing by Bill Rigby)