Former Panama leader on trial for money laundering over infamous Latin American scandal

Panama's former president (2009-2014) Ricardo Martinelli gestures during a press conference in Panama City, on June 27, 2023. Martinelli, granted asylum in Colombia, and about 20 others went on trial for allegedly laundering Odebrecht bribes. Photo / Roberto Cisneros, AFP

Former Panamanian President Ricardo Martinelli went on trial today for money laundering in a sprawling corruption case that has drawn in several South American leaders.

Brazilian construction giant Odebrecht, which has since changed its name to Novonor, has admitted to paying hundreds of millions of dollars in bribes throughout Latin America to secure huge public works contracts between 2001 and 2016.

The so-called “Car Wash” scandal, which erupted in 2014, has landed dozens of top politicians and business figures behind bars.

Former Peruvian presidents Alejandro Toledo and Ollanta Humala are serving lengthy sentences in their country after being convicted of being on the take from Odebrecht.

Politicians in Argentina, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Panama and Venezuela have also been convicted over their roles in the scandal.

Martinelli, who faces a 12-year prison sentence if convicted in absentia, appeared in a Panama City court via video conference from Colombia, where he sought asylum last year.

“I am innocent, I am not responsible” the 73-year-old, who was president from 2009 to 2014, pleaded.

Odebrecht has admitted to paying US$59 million ($102m) in bribes during Martinelli’s tenure to win the tender for construction of Panama City’s metro, the modern coastal highway in the capital, and for the expansion of Panama’s international airport.

The prosecution argues that, although there is no evidence of payments being paid directly into Martinelli’s personal accounts, he was the final recipient of the funds and had “full knowledge of the illicit origin” of the money.

“This case is entirely political,” Carlos Carrillo, the former president’s lawyer, told AFP.

Another former president, Juan Carlos Varela, and two of Martinelli’s sons are also accused in the case but will be tried at a later date by the Supreme Court.

Martinelli sought asylum in Colombia last year to avoid arrest in a separate money laundering case over which he was sentenced to nearly 11 years imprisonment.

-Agence France-Presse