Former Panamanian President Ricardo Martinelli is on trial over allegations he laundered millions of dollars tied to bribes paid by Brazilian construction giant Odebrecht, a case that plugs Panama into the regionwide “Car Wash” corruption scandal that has toppled political figures across Latin America, according to AFP.
Another former president, Juan Carlos Varela, and two of Martinelli’s sons are also accused in the case but are set to be tried later by Panama’s Supreme Court. Martinelli sought asylum in Colombia last year to avoid arrest in a separate money laundering case for which he was sentenced to nearly 11 years in prison, AFP said.
Martinelli, 73, appeared in a Panama City court by video conference from Colombia, where he sought asylum last year. “I am innocent, I am not responsible,” Martinelli told the court, according to AFP.
Prosecutors allege that Odebrecht, which has since changed its name to Novonor, paid $59 million in bribes during Martinelli’s 2009–2014 presidency to win major public works contracts, including construction of Panama City’s metro, a modern coastal highway in the capital and expansion of Panama’s international airport, AFP reported.
While investigators have not presented evidence that the payments landed directly in Martinelli’s personal accounts, the prosecution argues he was the final recipient of the funds and had “full knowledge of the illicit origin” of the money. “This case is entirely political,” Martinelli’s lawyer Carlos Carrillo told AFP.
The trial is the latest outgrowth of Odebrecht’s admission that it paid hundreds of millions of dollars in bribes across Latin America between 2001 and 2016 to secure public contracts, AFP reported. The “Car Wash” scandal erupted in 2014 and has led to convictions of politicians and business figures across multiple countries.
Former Peruvian presidents Alejandro Toledo and Ollanta Humala are serving lengthy sentences after being convicted of taking Odebrecht money. The news outlet reported that politicians in Argentina, Colombia, the Dominican Republic, Ecuador, Guatemala, Mexico, Panama and Venezuela have also been convicted over roles in the scandal.
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