{"id":29300,"date":"2020-07-06T11:10:08","date_gmt":"2020-07-06T16:10:08","guid":{"rendered":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=29300"},"modified":"2020-07-06T11:10:08","modified_gmt":"2020-07-06T16:10:08","slug":"two-former-panama-presidents-indicted-corruption-money-laundering","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/two-former-panama-presidents-indicted-corruption-money-laundering\/","title":{"rendered":"Two Former Panama Presidents Indicted for Corruption and Money Laundering"},"content":{"rendered":"

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

The indictment of two former Panama presidents may mark a watershed development for the Central American nation\u2019s fight against corruption.<\/p>\n

On July 1,\u00a0prosecutors announced<\/a>\u00a0corruption and money laundering\u00a0charges against former presidents Ricardo Martinelli (2009-2014) and Juan Carlos Varela (2014-2019), summoning them for interrogation.<\/p>\n

Martinelli\u2019s indictment concerns his involvement in the\u00a0\u201cNew Business\u201d case<\/a>, which centers on the alleged embezzlement of millions in public funds through the purchase of a publishing group,\u00a0according<\/a>\u00a0to The Panama News.<\/p>\n

Meanwhile, Varela stands\u00a0accused<\/a>\u00a0of accepting campaign donations as bribes from the Odebrecht construction giant when he was Martinelli\u2019s vice president and then president himself. He has been under investigation since last summer,\u00a0according<\/a>\u00a0to teleSUR.<\/p>\n

Both men\u00a0strongly denied<\/a>\u00a0the allegations on July 2.<\/p>\n

What began in 2014 as a corruption probe in Brazil has since morphed into a massive\u00a0regional corruption scandal<\/a>, with the Brazilian construction conglomerate Odebrecht at its center. From Mexico to Argentina, investigators uncovered a pattern of the company bribing officials with campaign donations in exchange for infrastructure contracts across Latin America.<\/p>\n

The\u00a0investigations<\/a>\u00a0have ensnared dozens of high-ranking politicians and several hundred lower-level officials, lawmakers, and business tycoons.<\/p>\n

InSight Crime Analysis<\/h3>\n

This is far from the first legal problem Martinelli has faced, but so far, he has sailed through them all. In 2017, he was\u00a0arrested<\/a>\u00a0in the United States and extradited to Panama for a separate spying and corruption scandal. He spent two years in pre-trial detention before being\u00a0found not guilty<\/a>\u00a0in court.<\/p>\n

Martinelli appears confident that he will be exonerated once again in the \u201cNew Business\u201d case. He\u00a0reportedly refused<\/a>\u00a0to answer questions from prosecutors on July 2 but\u00a0spoke to the press<\/a>\u00a0and claimed that he was the \u201cgreatest businessman in the country\u201d and a victim of political persecution.<\/p>\n

Martinelli ihas also been also embroiled in the Odebrecht scandal. According to\u00a0Panamanian prosecutors<\/a>, the Brazilian construction giant paid\u00a0$59 million in bribes<\/a>\u00a0to secure public works contracts in Panama worth a total of $96 million during his presidency. Projects including road construction, the improvement of Panama City\u2019s metro, and the expansion of the Tocumen International Airport. The preceding administration awarded just $5.5 million in contracts to the company.<\/p>\n

However, charges\u00a0were never brought<\/a>\u00a0against Martinelli.<\/p>\n

Panama\u2019s\u00a0Odebrecht investigation<\/a>\u00a0has been at a slow boil since the end of Martinelli\u2019s presidency in 2014.\u00a0By 2018, the country\u2019s head prosecutor for the Odebrecht case, Zuleyka Moore, had\u00a0launched investigations<\/a>\u00a0into 76 individuals, resulting in five convictions and the recuperation of more than $255 million. The investigations have included probes into the conduct of former economy minister\u00a0Frank de Lima<\/a>, former public works minister\u00a0Jaime Ford<\/a>\u00a0and\u00a0two of Martinelli\u2019s sons<\/a>.<\/p>\n

Proceedings against Martinelli and now Varela have lagged, complicated by other investigations into the administration and the technicalities of Martinelli\u2019s extradition from the United States.<\/p>\n

In May, Attorney General Eduardo Ulloa\u00a0rotated Moore<\/a>\u00a0off of the Odebrecht case. The subsequent indictments against Martinelli and Varela could be attributable to Ulloa\u2019s more aggressive decision-making.<\/p>\n

Despite this recent push from state prosecutors, Martinelli and Varela have remained defiant and their conviction is not a foregone conclusion.<\/p>\n

Martinelli maintains that his indictment violates the\u00a0\u201cspecialty principle\u201d<\/a>\u00a0of the 1904 extradition agreement between the United States and Panama. The clause states that one cannot be charged for crimes other than those which provoked the extradition \u2014 in this case, the political spying allegations for which\u00a0Martinelli was cleared<\/a>\u00a0in 2019.<\/p>\n

For his part, Varela has no such extradition agreement to rely on but has\u00a0denied the allegations<\/a>. He maintains that the Odebrecht payments were donations, not bribes.<\/p>\n

Varela\u00a0is just the latest former Latin American president to be formally indicted or convicted in the Odebrecht scandal, following\u00a0Rafael Correa<\/a>\u00a0of Ecuador,\u00a0Ollanta Humala<\/a>\u00a0of Peru,\u00a0Michel Temer<\/a>\u00a0and\u00a0Luiz In\u00e1cio Lula da Silva<\/a>\u00a0of Brazil, and\u00a0Mauricio Funes<\/a>\u00a0of El Salvador.<\/p>\n

Stay Safe!!<\/p>\n\n

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    The indictment of two former Panama presidents may mark a watershed development for the Central American nation\u2019s fight<\/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":[242,12,241,39,248,34,33,62,265,42,219,11,249,243,7,246,244,260],"class_list":["post-29300","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-boca-chica-real-estate","tag-boquete","tag-boquete-real-estate","tag-buenaventura","tag-casco","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-disenfetion-services-safety-in-panama-panama-real-estate-bocas-del-toro","tag-estate-homes-in-panama","tag-move-to-panama","tag-offshore-real-estate","tag-panama-offshore-real-estate","tag-panama-papers","tag-panama-real-estate","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama-rent-in-boquete"],"yoast_head":"\nTwo Former Panama Presidents Indicted for Corruption and Money Laundering - Blog and 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