According to the report, Blandon used the Catholic Church as a "promoter" for the projects he requested from the FIS. The firm that prepared the report backed up the assertions with invoices and official FIS purchase orders that totaled at least $40,000 dollars each. Most purchases were allocated to one company, Servicios y Ventas Múltiples, the same company related to fictitious deliveries in cases of the other lawmakers who were also named in the multi million dollar fraud perpetrated against the FIS. The alleged aid promoted through Blandon included food and supplies, which should have been delivered to the church of Santa Ana.

During the external audit of the FIS, the auditing company López Consultores says they have found that the aid was never delivered. As a witness, the firm cited the pastor of the church, Manuel Man, who declared they have "never" received any help from the Assembly or from Deputy Blandon. Man admitted having signed several requests for support aimed at Blandon, because the Deputy himself made the suggestion. Blandon's assistants promised the pastor there would be no problem, and that this was the standard practice of the prior pastor at the church, said Man, according to the external audit report prepared on the FIS.

Amid the FIS scandal of the FIS report in January 2010, Blandon said the aid that had been requested through father Man was not only to that church, but encompassed the entire circuit 8-7. (Panama America)

Editor's Comment: This is why the Panameñista lawmakers are ready to fall on their swords over the "Fifth Chamber" issue in the Supreme Court. If Martinelli can actually get eight of twelve Supreme Court justices, then they can hold trials and investigations into these kinds of corrupt practices being conducted by the members of the National Assembly. Up until now, there has been a sort of "cold war" - in which neither the Supreme Court justices nor the Deputies of the National Assembly can be tried or convicted by anyone. The "Fifth Chamber" would tip the balance of power in favor of the Supreme Court, and they will use that power to put opposition politicians like Blandon in jail, or at least get him kicked out of the National Assembly. Did I forget to mention "guilty, or not"? Hardball politics, Panama style. If Martinelli wants to end these Indian protests, he should just say "screw it" and name this three new judges. It's all about focus, and initiative.   

Editor's Comment: When Roxana Mendez took over she found there was about 1,000 people on the payroll of city hall who were either not needed, or who were receiving a paycheck and not actually going to work. She is now in the process of cleaning up the mess left behind by her predecessor Bosco Ricardo Vallarino. She's firing people left and right, all of them members of the Panameñista political party. And who should those people be mad at? The Varela brothers and Jose Blandon, who torched the alliance between the Panameñistas and the CD. So, I hear you've been fired. Want a job? Come over to the dark side...    

Editor's Comment: Uh, allow me to state the obvious. The government of Panama went back to the company - Finmeccanica, which is 30% owned by the government of Italy - and ask them "did you charge us too much?" And the answer basically says "we charged what you had budgeted." Obviously, that's not the best way to determine if there was price gouging going on. "Excuse me Mr. Used Car Salesman - did you charge me too much for that used car?" Ridiculous. Why not hire an outside, independent contractor to go around the world and examine equal or comparative systems bought from this company and others by different nations around the world, to determine if there were price overruns. But that's not going to happen. With this letter the government of Panama will bury the whole issue.   

Editor's Comment: In Panama requests for "habeas data" are basically like Freedom of Information requests. In this case the lawyer filed the habeas data requests in order to force the ANATI to turn over information in the case to the prosecutors. He knew the ANATI had the information, but they were not going to give it up, so he went to the Supreme Court to make them do so, and the court decided in his favor. Now the ANATI will have to make the information (whatever it is) available. These issues of access to what should be public information are the keystone of an anti corruption campaign. A truly non corrupt government is one that is completely and totally transparent. When facts and figures about how the money is spent, for example, is hidden, then you know someone is doing something wrong. And, it takes a massive effort (such as this) to force them to give it up. Today I learned that each and every representative in the Capital district of Panama City was given more than $400,000 dollars to spend on projects in their communities. What was that money spent on? There are 21 districts in Panama City, so that was $8.4 million dollars, spent by politicians, on what? Now, how easy (or hard) do you think it would be to get some true and accurate accounting on that spending? Answer = impossible.   

Editor's Comment: I didn't clearly understand all of that, and I think that's part of the intent. I understood there were some "irregularities" in the decision of the Second Superior Tribunal in the Perez Balladares money laundering case. Basically, there was still a decision that had to be made by the Supreme Court before this lower Tribunal should have been able to make their decision. However, they went ahead and did it anyway. No matter, it was always clear from the start this case would end up in the Supreme Court, from day one.   

In the complaint it is alleged Tamburrelli used the state resources under his control to entice members of the PRD political party to switch to the CD political party. The decision from the Electoral Tribunal also said "the investigation being conducted by the Electoral Prosecutor is based on actions unrelated to the participation of Mr. Giacomo Tamburrelli Lettieri recent party elections held on 4 December 2011." These elections were held in the district of El Bebedero, in the province of Los Santos. The election was won by the CD candidate Nidia Cureña.

The resolution of the Electoral Tribunal is dated 3 January 2012. (Prensa)

Editor's Comment: As the Director of the National Assistance Program, Giacomo Tamburrelli controls the funds that are handed out to the different areas of the country for community improvement projects. In the complaint against him his political detractors in the PRD allege he is using those funds as bait to get local politicians to switch from the PRD to his CD party. In Panama people who are serving in the higher ranking positions of government have a certain degree of protection from frivolous or politically motivated lawsuits. In these kinds of cases the Electoral Tribunal has to make a decision - based on the evidence and the complaint - whether or not there is enough reason to allow the investigation to proceed. If so, they "lift" his protection, and now the Electoral Prosecutor can proceed with his investigation. It's worth noting that the Electoral Tribunal and the Electoral Prosecutor are two positions in the government that are not controlled by President Ricardo Martinelli and the CD - they're controlled by the PRD. So, yeah, as with everything else in Panama, it's political.   

Editor's Comment: Ah, OK. Now it all makes sense. Sometimes it takes awhile for all of the moving parts and pieces to "click" into place. A few days ago the new President of the Supreme Court Alejandro Moncada Luna was sworn in, and in his acceptance speech he was talking about how they would be submitting a proposal to limit the terms for Magistrates to ten years. And, he also wanted the ability to fire corrupt judges. At the time I didn't know what he was talking about, and I said so in my comments. Currently Supreme Court justices are already limited to ten years in office, but Alejandro Moncada Luna was talking about the judges who sit on the Superior Tribunals, like the ones who decided this case in favor of the former president Ernesto Perez Balladares. During his speech Moncada Luna said "we cannot continue to allow corruption in the judiciary." Someone called me up and explained that these Supreme Court justices are appointed for life. And, they are notoriously corrupt, especially in high profile cases involving people with lots of money. The person who called said often it becomes a virtual bidding war, and whoever is willing to pay the most money, wins the case. And what's more, it's almost impossible to remove these people from their positions, no matter what. Now, of course I have no indication any bribes were paid in the case of Ernesto Perez Balladares. And, I suspect the government prosecutors will now appeal this decision to the Supreme Court. If the decision had gone against Perez Balladares then he would be the one doing the appealing. No matter - in cases such as this the final word is always had by the Supreme Court, and I don't expect this case will die at this level.   

Editor's Comment: Whoops, again. Is this Martinelli tossing Papadimitriu under the bus? Maybe he's the member of the Cabinet who's "burned out" and in need of a change of scenery. Well, I doubt it. Martinelli has stuck by several others of his administration who have gotten in trouble for scandals, and you really (really) have to screw the pooch for him to jettison your ass. There have been several people that I thought "well, that's it for that guy..." but in the end Martinelli has remained true. And, Papadimitriu is Martinelli's closest political adviser so in reality there's not much of a chance of him getting cut loose. But yeah, Papadimitriu should have let us know sooner his parents were using their son's political connections to worm ill gotten land titles for beachfront property thanks to sweetheart deals with the ANATI. That would have been nice...    

Editor's Comment: Belgis Castro was one of the Education Ministers who served during the PRD administration Martin Torrijos. This whole "clean up the fiberglass" scam was totally unnecessary from the start. These guys managed to create a type of mass hysteria by convincing everyone that the schools were "contaminated" with fiberglass, and they had to use government funds to "clean it up." In fact there's nothing contaminating at all about fiberglass insulation - it's not harmful at all as long as it's behind a wall of gypsum board (for example.) Yes, the little fibers can irritate your skin which is why workers who are installing fiberglass insulation wear protective clothing. Belgis Castro and others at the Ministry of Education first created the bogus need to "clean up" something that was not in reality a problem at all, then they embezzled the money allocated for the (unnecessary) cleanup. The investigations continue.   

Editor's Comment: In Panama prosecutors have the power to order a person's arrest, and anyone who has been detained can apply for bail to a judge.    

Editor's Comment: The cover-up is slowly melting away. The Italian company Finmeccanica developed a normal routine which they practiced in countries around the world, a strategy through which they could corrupt government officials practically anywhere. Remember, these government officials are spending tax dollars - not their own money - and what these corrupt bastards are looking for is ways to steal the money without getting caught and thrown in jail. Finmeccanica to the rescue! Using intermediaries like Valter Lavitola, they sell the local government a package of military or security hardware. In the case of Panama they were buying radar sets that were to be used to monitor the coastlines for drug traffickers (needed), helicopters (needed), and digital mapping services for the entire country (needed.) The bottom line price of the products and services is inflated. The corrupt local government officials agree to pay more (tax money) than they should. Then Finmeccanica creates a "kick back" mechanism through third parties, another company that supposedly has nothing do to with the government of Italy or the government of Panama. This company gets paid 10% supposedly for brokerage services, whatever that means. Finmeccanica covers themselves legally with contracts, and they include clauses prohibiting these third party guys from giving any money to government officials from either Italy or Panama. That's their "plausible deniability" protection. In the case of Selex in Panama they cancelled the contract with Agafia in October 2011 - after the whole deal had blown up. In short, Finmeccanica tried to execute their life raft, but that will be too little and too late. Meanwhile here in Panama the inflated price that Panama was in fact paying for these 19 radar sets is money that would have eventually found its way back through Finmeccanica to Agafia, and then (behind the scenes) into the pockets of corrupt government officials in both Panama and Italy. As long as no one finds out, that is. This whole deal fell apart before any bribes could be paid. But, you can bet your ass they were going to be paid. How many times has Finmeccanica done this same deal around the world? How many times has Panama done this same deal with other companies on other projects and on other contracts? It's hard to investigate this stuff when the government of Panama is so non-transparent with government contracts and spending. And, they are non-transparent for a reason. And the reason is - they are stealing money hand over fist. Always have, always will. There is no practical difference between the PRD, Panameñistas, and now the CD - except who happens to be stealing the money today.   

Papadimitriu accepted his family's relationship with the titling of land in Juan Hombrón: "I talked to my parents and they confirmed that they had in fact invested in the purchase of Rights of Possession land from the fishermen in the area of Juan Hombrón, but also in Bocas del Toro and Santa Catalina, not now but rather years ago." He said his family has had companies in Panama for more than 40 years. "I do not manage my parents' business, and they don't get into my activities," he said. He admitted that Anabelle Villamonte, the former Director of Land Titling of the National Authority for Land Management (ANATI) - who has been arrested in this scandal - worked for his parents. And it was the Democratic Change political party - of which she is a member - who named her to that office.

But he exempted from any involvement Alejandro Castillero, the former Director of Anati who was recently appointed to a diplomatic post in China. "He had nothing to do with it," said Papadimitriu. (Prensa)

Editor's Comment: OK, now where did I leave that bullshit detector? Ah, here it is. Allow me to highlight the parts of this "confession" that are most likely lies and bullshit, and to identify those parts that are most likely truth and fact;

Truth and Fact #1: Jimmy Papadimitriu's parents bought land in Juan Hombron. They are up to their eyeballs in this scandal. The only reason Papadimitriu agreed to participate in this interview with La Prensa and to come clean is because he knows the truth and facts are out there already, most likely as a result of the three solid days and hours of testimony that has been given by the primary lawyer responsible for putting all of this mess together, Anabelle Villamonte. So now that she's spilling her guts to the Attorney General, it was time for the smart politician Jimmy Papadimitriu to face the facts and make a public statement, and to seize the little remaining opportunity he has to try to spin this into something that might save him and his family from further scrutiny.

Spin Alert #1: In this article when Papadimitriu highlights that his family also purchased Rights of Possession property in Bocas del Toro and Santa Catalina - the obvious response should be "so friggin' what?" Was Anabelle Villamonte involved in granting free titles for those lands as well? Is there an ongoing investigation over the land his parents bought in Bocas del Toro or Santa Catalina? No, of course not. He only mentions this in an attempt to paint his parent's purchase of the land in Juan Hombron as something natural and normal, the type of thing they do every day. So, this is an element of spin.

Spin Alert #2: Papadimitriu says his family has had businesses in Panama for more than 40 years. Again - so what? The administration of Ricardo Martinelli is comprised mostly of businessmen, and Jimmy Papadimitriu is at least a second or third generation businessman in Panama. The fact that his parents have businesses in Panama is irrelevant to the ongoing investigation over the improper titling of land by Anabelle Villamonte in Juan Hombron. This is more spin.

Probable Truth, Lie, Spin Mix: The next line is a veritable cocktail - sort of like a Tequila Sunrise - you can look at it anyway you want and what you get depends on how deep you insert the straw, until you stir (spin) and then it all turns the same color anyway. Papadimitriu said "I do not manage my parents' business, and they don't get into my activities." Well, that's at least partially true because Jimmy Papadimitriu is the Minster of the Presidency and he gets to vote at the Cabinet meetings, and his parents don't. And of course his parents are adults and they can do whatever they want without consulting him. So those are elements of truth. However Jimmy Papadimitriu seems to be saying "I didn't have anything to do with this." Like, his parents were just out there buying up Rights of Possession land in Juan Hombron, and then the titling process was rocketed through the system at light speed, and he expects us to believe that the fact he is the Minister of the Presidency had nothing to do with that? Really? Please, don't insult our intelligence. I know people who have been trying to get land titled for more than six years. I guess they should try to get their offspring in positions of importance in the government in order to get a land title, because nothing else is working. So, this is a truth, lie, spin mixture, concocted out of necessity to face the facts in public.

Anabelle Villamonte Worked For His Parents: Massive revelation. Well, not really, it's already been in the press. But now they are admitting it. Jimmy Papadimitriu's parents were the money behind at least a part of the Juan Hombron deal. Anabelle Villamonte, who just spent the weekend in prison so she could take a break from being interrogated, is slowly and surely laying out ever little stinking detail of every deal. And of course that means the names of Jimmy Papadimitriu's parents are now in the case file being developed by the Attorney General. Normally when a lawyer breaks the law they do it on behalf of someone else. So do you think Anabelle Villamonte is willing to take one for the team? To lie and protect Jimmy Papadimitriu's parents? Do you think the lawyer was the only one breaking the law? Or, was there influence peddling going on, to allow for the light-speed titling of this land bought by Jimmy Papadimitriu's parents? This is a truth, and a fact, and it's going to be emerging as a more important part of the investigation as the Attorney General continues to develop the case.

Political Parties Make Appointments To Government Positions? Really? Since when? In this article Jimmy Papadimitriu tries to make us believe that it was Ricardo Martinelli's Cambio Democratico political party that appointed Anabelle Villamonte to the position of the Director of Land Titling of the newly created National Land Management Authority (ANATI). Err, BULLSHIT! People appoint people to positions in the government in Panama. Political parties do not. And if it was the party, then who is in charge of the party? Jimmy Papadimitriu would have us believe that he, personally, did not have anything to do with the appointment of Anabelle Villamonte at the ANATI. But at the same time he doesn't say who did appoint her, if it wasn't him. Listen - this one simply does not pass the smell test. Anabelle Villamonte was working for his parents. Working as a private lawyer created the brand new Panamanian companies that were used to buy the rights of possession property from the local fishermen in Juan Hombron. And then like magic she was appointed to the ANATI? In that position specifically? And Jimmy Papadimitriu would try to make us believe that he didn't have anything to do with it? Again, please don't insult our intelligence.

Alejandro Castillero Is Innocent: That part I believe. He was running the new ANATI office and he probably didn't have any clue what Anabelle Villamonte was doing down at the office that handed out the land titles. Why not? As the boss he was supposed to be monitoring and managing the activities of those who worked under him, right? And that's especially true if those people - like Anabelle Villamonte - were apparently or allegedly breaking the law. So ask yourself, why not. Why didn't Alejandro Castillero know what Anabelle Villamonte was doing? (Rhetorical question). Answer - she was most likely appointed directly by Jimmy Papadimitriu himself. That meant (to Alejandro Castillero) "hands off." She had most likely been anointed by Papadimitriu so that meant Castillero was to keep his nose out of her business. And what's the first thing the loyal puppy (Villamonte) did at her new job? Cram through the land titles for Jimmy Papadimitriu's parents. Sweet. So, yeah it's probably true that Castillero was blissfully ignorant of what was going on. Now, was he criminally negligent at the same time? Should he have better managed the ANATI while he was in charge? Doesn't the buck stop with the Director? Nah, he was protected. He resigned and they assigned him to a consulate in China, literally on the other side of the world in order to protect him. Meanwhile, Anabelle Villamonte is in prison. And from there, the young lady is continuing to spill her guts.   

Editor's Comment: I imagine there are many people in the Panamanian government who are greatly concerned about exactly what might be turned up by the prosecutors and investigators in Italy. Here, Mulino and Martinelli can exercise greater control over what information gets out. However they have no control whatsoever over the news media in Italy, or the Italian prosecutors and justice system. Yup, they're nervous.    

According to McDonald, Villamonte, before being hired to work in the ANATI, was hired by a private attorney to get the land and to make the arrangements under the prior law. Among the evidence presented by Villamonte's defense attorney was a memo she prepared as the Director of Land Titling of the ANATI, which raised a query to the Legal Department of the Tax Office, in order to know if she should declare herself as impeded, because as a private lawyer she had known about the petitions for title that were coming to her office, and if she should authorize them. McDonald explained that the memorandum details that Villamonte was the person who would have to sign the authorizations for the land titles, and she could not be replaced. "She raised this query to know whether or not she was entitled to sign these procedures," she said.

She added her client is charged for alleged award of protected areas, mangroves, among others, when in fact these lands were not in protected areas, but in adjacent areas. In addition, the defense presented yesterday a formal application for bail for Villamonte before the Causes Settlement Court in Cocle, where the investigation started. The procedures to refer the case to this court, which must analyze the request, were initiated by the General Secretariat of the Attorney General's Office.

Upon leaving the Attorney General's office, after being questioned for nearly six hours, Villamonte issued no word to the media and this time she went through the main entrance of the institution. According to her lawyer Villamonte was denied special request to attend the graduation of a family member. In this case five complaints have been filed. One by the Center for Environmental Advocacy, which indicates that 97% of the Pacific coast is mangrove forests, and in Juan Hombrón are located one of the main reservoirs of mangroves in the country. (Panama America)   

Panama's Security Minister Jose Raul Mulino said yesterday that he asked for a "clarification" from the Italian Government, on the instructions of the president Ricardo Martinelli, on the purchase of the 19 radar sets, six helicopters from AugustaWestland, digital cartographic map services, and the donation of six patrol boats agreed with the Government of Italy in June 2010.

For his part Vice President Juan Carlos Varela yesterday reiterated his request that "the contract must be suspended, the information should be public and it should be investigated to determine whether or not there was injury to the state." (Prensa)

Editor's Comment: The Italian news media is all over this story, and they are doing a much better job of investigating all of this crap over there than here in Panama. The results of the investigations there could flop across the Atlantic and land here like big, fat, stinking turds. My prediction is that sooner or later someone who knew every little detail of the deal between these Italian companies and the Panamanian government will come forward, most likely to save their own ass from serious jail time. That person (whoever it is) will end up having a whole lot of credibility, and it's going to be very interesting to see what they have to say. I suspect that I already know most of it, especially the most important parts. This scheme of setting up another company and paying them a 10% "brokerage fee" is apparently how this company Finmeccanica has been doing business all around the world for a very long time. I suspect the Italian authorities should go back and see exactly how many times these kinds of 10% companies were set up, in what other countries in Latin America and around the world, and then track the money (every dime) that went through those companies to see who actually got paid in the end by this "black fund." And I also think the whole Panama deal fell apart before any money exchanged hands or any bribes were paid. The Panama government should cancel the contract and buy their radar sets from someone else, while the Italians figure this whole thing out. And of course Lavitola can probably take down Martinelli at will.   

Cesar Segura's lawyer Silvio Guerra

Editor's Comment: Allow me to point out the obvious. The former Director of Land Titling of the ANATI, Anabele Villamonte, is being defended by Guillermina McDonald - the same lawyer who defended former president Ernesto Perez Balladares. Silvio Guerra has defended the former Minister of Government and Justice Daniel Delgado Diamante, and he's considered to be one of the most prominent defense attorneys in Panama. So - you tell me - how do people like Anabel Villamonte (low level former government employee, now unemployed) and Cesar Segura (a "florist" who filed a claim against the land in Paitilla) rate two of the best defense attorneys in the entire Republic of Panama? (Rhetorical question). Answer - there's big money and powerful people who are actually behind the land deals in Paitilla and Juan Hombron. These people are paying for the defense lawyers, in hopes they will be able to keep Villamonte and Segura from spilling their guts and telling the Attorney General the truth about what went down. Stay tuned. That squeaking sound you hear is the noise made by the uncontrollably clenching sphincters of those who are pulling the strings from behind the curtain. And since the Attorney General is going after this case with a passion, I suspect their names will start and end with "Panameñista." And considering the date, the thought of "Chet's Nuts Roasting By An Open Fire" comes to mind...

   

Editor's Comment: After she was arrested last night, Villamonte spent the night as a prisoner in the DIJ holding cells in Ancon. Then this morning DIJ detectives returned her to the offices of the Attorney General to continue her questioning. The Attorney General has also pressed formal charges against her in the case of a land title that was granted for free to a "florist" named Segura, for a 11,000+ square parcel of land in Paitilla. Interestingly, after Villamonte was arrested last night, this morning Segura dropped all claims against the land in Paitilla. It's funny how that "clank" sound of a closing jail cell door changes things in a hurry. Now the question remains - Who was Villamonte working for? What was "really" going to benefit from the land in Paitilla and Juan Hombron? More of Panama's "open secrets" - everyone already knows, and now let's see just how far Jose Ayu Prado is willing to take this.   

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

Editor's Comment: Whoops. The earlier story had her lawyer down at the prosecutor's office making excuses as to why she wasn't going to show up, for "personal reasons." They probably told the lawyer to go find her client, or they would sent the police to pick her up. You play games, they play games...   

SILENCE IN PANAMA - The Italian media believe this is the "scandal of the century" due to the proportions it has taken. Although Panama has signed a multi million dollar contract awarded directly to the company Finemeccanica through its subsidiaries Selex, Agusta, and Telespazio, the Panamanian authorities are silent about it. So far the only audit has been conducted by the Comptroller of the Republic, according to reports from the Ministry of Security. The Comptroller has not said anything about it.

Direct Purchases - Panama signed an agreement to buy 19 radar sets, six helicopters (five of them gunships), and digitized mapping services from Finmeccanica - seen as a 'giant' in the manufacture of weapons and security equipment. According to a list handed to Italian judge Vincenzo Piscitello yesterday, Italian authorities are now investigating a new tactic used by the Italian company, "the supposed international corruption under the shadow of requests for bribes from foreign politicians and media outlets." (Estrella)

Valter Lavitola put all of this together in Panama, and now he's a fugitive from Italian justice.

Editor's Comment: It's a good thing someone is investigating this crap in Italy, because there's sure no one investigating anything here. I think this whole thing fell apart before the Panamanian contract was paid and before any bribes were paid. I bet it was in the works and the Panamanian deal was structured in exactly the same way as many other deals had been done in the past, but the Panamanian guys basically got "lucky" in that the house of cards came down before they got burned. Now, if some company official with credibility starts naming Panamanian names and providing detailed intelligence information in exchange for a reduced jail sentence, then they might be screwed. But if that never happens, and if they just keek their mouths shut, then it might just blow over. Too early to tell at this point, based on available information. Could go either way.   

Editor's Comment: Environmental crimes? Whatever. The real reason Villamonte didn't appear before the Attorney General today is because her smart attorney is afraid they are going to arrest her. It's one thing when you're being questioned or interrogated, and it's another thing once they have pressed formal charges - and that happened today. This is part of the game the lawyers play with the prosecutors, and Guillermina McDonald is a smart and well known criminal defense attorney. Anyway, the plot thickens. And, good. If you can catch them, and if they are corrupt. And if they are guilty. And if the prosecutors can prove it. And if a judge decides they're guilty. Then they should be tossed in jail. All of them. That's the only way this country is ever going to get over its addiction to bribes, kickbacks, and corruption by government officials. They keep doing it, because they keep getting away with it.    

Editor's Comment: Man, it's all out information warfare in Panama. This recording, which was posted on YouTube last night, was making all of the rounds this morning. Apparently it contains a recording of a meeting, and apparently judging by the poor quality of the recording, it was made by someone who was at the meeting with a cell phone (set to record a voice note while the meeting was taking place.) And in the conversation one can hear the participants discussing and coordinating the documents and email provided by the Italian businessman Mauro Velocci about the contract with the Italian companies and the government of Panama. Yesterday it came out the Velocci was the original source of these emails, and he's basically pissed off because the government of Panama decided to cancel a plan to build four modular prisons using his company. This was a deal worth more than $100 million dollars that fell through, so out of spite Velocci made the stack of emails available to the media and political opposition leaders, such as Balbina Herrera and Juan Carlos Varela. It's important to realize that right now in Panama the different news media outlets are all aligned on one side or the other. The PRD is mostly aligned with the interests of the Panameñista party. Telemetro is clearly PRD. The Panama America is 100% Ricardo Martinelli and the CD. So, all of this is a three way mud fight, with corrupt politicians trying as hard as they can to do damage to their political rivals, no holds barred. And so far, it's been I'll match your smear campaign with an official investigation by the Attorney General. And, does anyone remember how to spell CEMIS? Or Chilibre? There's more than enough kerosene and matches to go around...   

Selex said - in the letters - that after the publication of news articles in the Italian media they could confirm that there had been a violation of the contract. It had to do with the appointment of Karen De Grace as president of Agafia Corp. in June last year. Grace was linked this year as a close friend of Lavitola, the former consultant of Finmeccanica.

After this, SELEX proceeded to inform the company in writing of their decision to cancel the contact with the Panamanian company, and they said they have "no obligations with Agafia Corp." The communication, dated in Rome on 17 October 2011, is signed on behalf of Selex by a company lawyer. Agafia Corp. in August last year signed an agreement with three subsidiaries of Finmeccanica and would have received 10% of the money these companies would have been paid as part of the contract with the government of Panama for the sale of radar sets, helicopters, and digital mapping services. In total, the company would have received more than $25 million dollars. (Panama America)

Editor's Comment: It is now becoming more and more apparent that this is how the Italian defense giant Finmeccanica conducted its business around the world. They would obtain a defense contract with a local government, and then set up a separate deal with a third party for "brokerage" services, paying 10% of the value of the contract. This money went into a "black fund" used to pay bribes and kickbacks to corrupt local politicians to approve the deals in the first place. In the case of Panama I think it all fell apart before any bribes were actually paid. I think the government of Panama should punt on the whole thing. It would be healthy for them to simply declare "we had no idea, but now that all of this has been revealed, we're out." And then they can cooperate with the Italian authorities as part of their investigations into the Finmeccanica shenanigans. Oh, and by the way - 30% of Finmeccanica is owned by the government of Italy. Go figure.