Panama’s top court cancels questioned Italian radar contract


News from Panama / Tuesday, September 1st, 2015

KRONOS

Panama’s top court has canceled a $120 million government contract to purchase a radar system from Italian industrial giant Finmeccanica due to corruption concerns.

The preliminary decision by the Supreme Court on Wednesday came in response to a government lawsuit arguing that the contract signed by former President Ricardo Martinelli was the product of bribes and kickbacks.

Authorities say they plan to seek reimbursement from Finmeccanica for payments already made for the 19 drug-surveillance radars.

Finmeccanica’s subsidiary Silex didn’t immediately respond to a request for comment.

Martinelli governed Panama from 2009 to 2014 during a period of fast economic growth and nagging suspicions of corruption. He traveled abroad earlier this year as prosecutors began to investigate him for possible embezzlement of public funds, alleging political persecution by his successor.