Public Prosecutor”s Office of Panama is investigating possible money laundering in the construction of two hydroelectric plants linked to ex Presidente Ricardo Martinelli (2009-2014) and his children, reported La Prensa daily on Sunday.

According to the Public Ministry, the file was opened under that alleged crime, to which it is added the unplanned construction of a substation to link the hydroelectric plants with the national system, though the investigations might lead to other violators of the law.

The investigation will include government entities related to the granting of concessions to know how the paperwork was done, who is responsible for making the paperwork, and those who can provide information, said the source, who was not identified by the daily.

For his part, Prosecutor Guido Rodriguez will request an audit at the Electric Transmission Company S.A (Etesa) about the instalation of hydroelectric plants given to Martinelli, in order to determine if there was patrimonial damage to the State.

Rodríguez said that according to La Prensa’s article and the statements made by the director of the National Authority of Public Services (Asep), Roberto Meana, the State built the unplanned substation through Etesa to benefit the ex president and his children, an issue that must be cleared up.

Meana told La Prensa daily that the San Bartolo substation, in the central province of Veraguas, was built with public funds to facilitate operations for Las Cruces power plants (19.8MW) which are currently operating, and San Bartolo

(19,4 MW), whose construction will conclude in 2016.

The investment was not included in Etesa’s expansion plan, but the construction of the hydroelectric plants was authorized.

Both hydroelectric plants belong to Istmo Energy Corporation, in which Martinelli and his children Enrique and Ricardo Alberto are majority stockholders, and the manager is Gustavo Garuz (son), brother-in-law of Luis Enrique. The two latter left the country shortly after the scandal.