{"id":13404,"date":"2015-05-18T14:34:04","date_gmt":"2015-05-18T19:34:04","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=13404"},"modified":"2015-05-19T13:38:55","modified_gmt":"2015-05-19T18:38:55","slug":"panama-gripped-by-millionaire-ex-presidents-graft-scandal","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-gripped-by-millionaire-ex-presidents-graft-scandal\/","title":{"rendered":"Panama gripped by millionaire ex-president’s graft scandal"},"content":{"rendered":"

\"martinelli<\/a><\/p>\n

This article written by Juan Jos\u00e9 Rodr\u00edguez,\u00a0 at AFP<\/a> recently appeared in the Business Insider.<\/p>\n

Mounting accusations of massive corruption during his time in office (2009-2014) are now closing in on former Panamanian president Ricardo Martinelli pictured on January 29, 2015<\/span><\/span><\/span><\/p>\n

Panama City (AFP) – When he ran for office, Panama’s former president Ricardo Martinelli promised graft-weary voters he would never steal a cent: Why would he need to, since he was already a millionaire?, he asked.<\/p>\n

Six years later, he is at the eye of a swirling scandal that has taken down several close allies, including two former ministers jailed for stealing public money.<\/p>\n

The mounting accusations of massive corruption during his presidency (2009-2014) are now closing in on Martinelli, a white-haired supermarket magnate who is already under investigation for skimming money off the top of a school lunch contract.<\/p>\n

“It’s like a line of dominoes. They’re knocking down the first ones to get to Martinelli,” said political analyst Jaime Porcell.<\/p>\n

Martinelli, 63, disappeared from the country in January.<\/p>\n

His whereabouts are unknown, but he keeps up an active presence on Twitter, where he recently posted a picture of himself with a palm-tree-lined beach in the background, with the caption: “Watching a beautiful sunset with two of my sisters.”<\/p>\n

He also uses the platform to taunt his successor and former ally, President Juan Carlos Varela, whom he accuses of “politically persecuting” him.<\/p>\n

Varela once served as Martinelli’s vice president and foreign minister, but they had a nasty falling out in 2011, when Martinelli sacked Varela from his cabinet, saying he was more focused on preparing for the 2014 presidential election than on doing his job.<\/p>\n

Varela hit back, accusing Martinelli of massive corruption.<\/p>\n

He continued to hector his boss from the vice president’s office, an elected post that Martinelli was powerless to force him from.<\/p>\n

Today, Martinelli’s tweets include smiling pictures of himself and Varela pre-rift that he has promised to post every week on “#ThrowbackThursday, when we remember the happy family we were.”<\/p>\n

It is all a far cry from 2009, when the pair teamed up to oust a center-left government and bring business-friendly policies back to Panama.<\/p>\n

Varela, the scion of a rum dynasty, promised to back Martinelli for president if Martinelli would back him in 2014.<\/p>\n

Martinelli won with vows to put an end to the corruption that has long dogged Panama, which has a reputation as a tax haven and ranks 94th out of 175 countries on watchdog group Transparency International’s corruption perceptions index.<\/p>\n

But now Martinelli is being investigated on suspicion of stealing money from a $45-million contract to buy food for schoolchildren as part of a National Action Plan (PAN) against poverty.<\/p>\n

– Luxury cars, apartments, yacht –<\/p>\n

Investigators also allege corruption on an airport parking lot program and a contract with a tax collection firm.<\/p>\n

Varela says the total stolen during his predecessor’s administration is nearly $100 million.<\/p>\n

Prosecution documents seen by AFP say that money was used to buy luxury cars, apartments and a yacht.<\/p>\n

As the graft charges have mounted, Martinelli’s allies have been falling one by one.<\/p>\n

His former economy minister, Frank De Lima, was arrested this week as part of a probe into allegations that up to $1.7 million was skimmed from PAN grain contracts.<\/p>\n

Prosecutors say De Lima oversaw purchases of rice, lentils and beans at twice the actual price, carefully keeping the amounts below $300,000 to avoid congressional oversight.<\/p>\n

Former social development minister Guillermo Ferrufino is serving jail time for stealing public funds, as are two former directors of PAN, Giacomo Tamburelli and Rafael Guardia.<\/p>\n

Other top Martinelli allies are under investigation, including business executives, a former Supreme Court judge and his own brother.<\/p>\n

“They are closing in on Martinelli. There will probably be more (scandals) because there was no oversight,” political analyst Mario Rognoni told AFP, saying Martinelli’s government pocketed “fist-fulls” of public money.<\/p>\n

“Martinelli’s future must be in prison, given all the known cases, the accusations and the evidence that is coming out,” said Magaly Castillo, the director of the Citizens Alliance for Justice, a watchdog group.<\/p>\n

But Martinelli, who is now a member of the Central American Parliament, maintains it is a smear campaign. He has filed a complaint with the Inter-American Commission on Human Rights, claiming rights violations.<\/p>\n

Read more: http:\/\/www.businessinsider.com\/afp-panama-gripped-by-millionaire-ex-presidents-graft-scandal-2015-5#ixzz3aWK8XVeH<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

This article written by Juan Jos\u00e9 Rodr\u00edguez,\u00a0 at AFP recently appeared in the Business Insider. Mounting accusations of<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-13404","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"\nPanama gripped by millionaire ex-president's graft scandal - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-gripped-by-millionaire-ex-presidents-graft-scandal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Panama gripped by millionaire ex-president's graft scandal\" \/>\n<meta property=\"og:description\" content=\"This article written by Juan Jos\u00e9 Rodr\u00edguez,\u00a0 at AFP recently appeared in the Business Insider. 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