Ecuador's President Guillermo Lasso dissolved the National Assembly in a decree on Wednesday, bringing forward legislative and presidential elections, a day after he presented his defense in an impeachment process against him.
Lasso denies the accusation, saying his administration made changes to the contract signed years before he took office, in order to benefit the state, on advice from Ecuador's comptroller.
A majority of lawmakers backed a resolution saying Lasso allowed the corrupt contract to continue, even though a congressional oversight committee, which heard testimony from opposition lawmakers, officials and Lasso's lawyer said in its report it did not recommend impeachment.
Ninety-two votes form the 137-member legislature would have been needed to remove Lasso from office. The vote to continue the process received 88.
The country's constitution enshrines the so-called 'two-way death' — allowing Lasso to call elections for both his post and the assembly under certain circumstances, including if actions by the legislature are blocking the functioning of government.
Lasso invoked the 'two-way death' citing Ecuador's grave political crisis.
Lasso will now remain in office for up to six months, ruling by decree, while national electoral authorities set the date for the elections.
Ecuador's electoral court must decide on a date for new elections within seven days of the assembly's dissolution.