World

Two former Panama presidents to face graft trial

Ricardo Martinelli, Juan Carlos Varela to be tried alongside 34 others

Updated 3 years ago · Published on 09 Nov 2022 9:00AM

Two former Panama presidents to face graft trial
Ricardo Martinelli has denied receiving any ‘ill-gotten gains’, and dismissed the accusations as ‘a political circus’ to prevent him from running for president again in 2024. – AFP pic, November 9, 2022

PANAMA CITY – A Panama court has ordered former presidents Ricardo Martinelli and Juan Carlos Varela to stand trial on charges of laundering money from Brazilian construction giant Odebrecht, a court document showed yesterday.

Judge Baloisa Marquines opened a criminal case against the two former leaders for crimes “against the economic order in the form of money laundering”, read the trial summons.

The two men, who collectively led Panama between 2009 and 2019, will be tried alongside 34 others, including five former ministers.

Two of Martinelli’s sons – who are both imprisoned in the United States after pleading guilty to receiving US$28 million (RM132.5 million) from Odebrecht – will also be tried.

The trial will run from August 1-18, 2023.

“It is, without a doubt, a historical event,” lawyer Carlos Barsallo, of the Transparency International NGO, said of having two presidents on trial for money laundering.

Prosecutors accuse Martinelli and Varela of using front companies and foreign bank accounts to receive funds from Odebrecht between 2008 and 2014.

In 2016, Odebrecht pled guilty in a Brooklyn court to paying more than US$788 million in bribes to government officials and political parties, mainly in Latin America, to win infrastructure contracts.

The Brazilian company admitted paying bribes worth US$59 million in Panama in exchange for contracts to build public works.

Odebrecht built Panama’s two metro lines, expanded Tocumen International Airport, and constructed Panama City’s ring road around its historic old quarter, among other multimillion-dollar projects.

According to the public prosecutor’s office, the company overbilled the Panamanian government for some projects.

Varela and his right-wing Panamenista party stand accused of receiving US$10 million from Odebrecht.

Varela, who led Panama from 2014 to 2019, denies the charges.

The billionaire supermarket tycoon Martinelli, 70, who was president from 2009-2014, also stands accused of illegally receiving money from Odebrecht. 

He was “fully aware of the illicit origin of the funds” and had even set up “an entire illegal structure” to collect the bribes, prosecutors said in a September hearing.

Martinelli has denied receiving any “ill-gotten gains”, and dismissed the accusations as "a political circus" to prevent him from running for president again in 2024.

However, the lawyer Barsallo said the trial may take several years, freeing Martinelli to run for office.

Martinelli, with Varela as his deputy, swept to victory in 2009 elections with a hard stance against corruption. The pair became rivals in 2011 after Martinelli sacked Varela as his foreign minister.

Martinelli has been investigated for multiple corruption scandals since leaving office. In 2021, he was acquitted for a second time on charges of espionage and embezzlement of public funds.

He is also under investigation for allegedly purchasing a publishing company with public money during his time in office. – AFP, November 9, 2022

Related News

Malaysia / 1mth

Former minister to face charges at KL Sessions Court tomorrow

Malaysia / 3mth

Guan Eng, wife, businesswoman to stand trial for corruption linked to RM11.6m project

Malaysia / 6mth

Op Viking: Victor Chin was once arrested for money laundering

Malaysia / 7mth

Prosecution does not object to Ahmad Zahid's release application

Malaysia / 1y

Graft allegations part of plot to weaken Sabah political groups

Malaysia / 1y

MACC probing ‘Tan Sri’ for alleged money laundering

Spotlight

Malaysia

Haze: Schools in Johor, Melaka, and Negeri Sembilan to close tomorrow

Malaysia

Tun Mahathir’s health improves, but not ready to leave hospital

Malaysia

LPT3 row puts Kelantan’s infrastructure priorities under scrutiny

Malaysia

Terengganu royal family member sues two banks over RM1.99m missing from savings

Malaysia

Irene Sofiya murder probe referred to Johor prosecutors for review

Malaysia

Teacher denies negligence charges over fatal school SUV crash in Kota Bharu

Malaysia

Sulaiman Md Ali opts out of Melaka polls, will not defend Lendu

You may be interested

World

Indonesia hotspots spike as Kalimantan records 326, Sumatra 303

World

Pope Leo XIV diagnosed with lung cancer after successful surgery

World

Fresh magnitude-6 earthquake strikes Panama after deadly tremor

World

North Korea test-fires tactical ballistic missile amid rising regional tensions

World

Malaysia seeks China’s satellite technology to improve flood warnings, combat cross-border crime

World

Indonesia rules out national disaster status for forest fires despite regional haze

World

Five Malaysians held in Tokyo over RM3.1m cocaine haul hidden in shoes

World

IMF warns AI sell-off; Soaring bond yields could trigger global market turmoil