Fired whistle blower says he informed Martinelli of mismanagement concerns

Whistle blower Gustavo Barahona said he informed President  Ricardo Martinelli of alleged mismanagement of social welfare funds on July 13.

The former Chief Financial Officer of the Ministry of Social Development, MIDES,  denounced the purchase of overpriced goods including raincoats and pants and knives from Ermis SA, which did not match the purchase order

Barahona said the money was intended for special projects to help needy people He reported electronically to Martinelli, that he should be "aware of some wrongdoing by the funds that were intended to give support to the needy … I find it despicable and unfair that these funds are not used for what they really were intended.

"I request my transfer to the Department of Social Policy, as there had been no corrective to avoid giving the continued mismanagement of funds," says the copy of the conversation provided by by Barahona to Panama America..

Martinelli, according to the letter, replied that "if things are done in accordance with the law, with appropriate transfer of funds and transparency in the case … it is not necessarily illegal.”
Two days later Barahona was fired and said he was prevented from removing his belongings from the office.

The former official went to the Anti-Corruption Prosecutor’s Office on Monday to request an investigation into possible irregular purchases.

Barahona, denounced alleged irregularities in the procurement of materials such as tents knives, boots and life jackets, for use in difficult access areas and soon after was fired.

The items were delivered to the agency’s office and, says La Estrella, it was realized the prices did not reflect the purchase order to the company ERMIS, S. A which had won an $18,685 bid,

La Estrella published a comparative price list of items involved showing the cost in a regular store, against the prices charged to the government department. A $5 knife was allegedly billed as $50, a $50 tent at $100, a $35 raincoat at $150 and $70 rubber boots at $150.

Barahona said that the first person who was notified of the anomaly was the secretary general of MIDES, Patrick Janson, who informed him that the issue would be handled by the minister himself Guillermo Ferrufino.

Bur six months since the complaint was filed no action had been taken, according to Barahona, and the institution continued to make purchases purchases from ERMIS totaling more than $400,000

He also claims to have been visited at home by Dionisio Rodriguez, creator of the program ‘100 to 70 ‘, who allegedly asked him not to submit the complaint and to meet with the minister Ferrufino. The meeting that was held later and the two officials said they would take careof the situation.
Ferrufino’s, Alejandro Perez, said there were people who wanted to harm the good image of the minister.

He said he had a notarized affidavit by a friend Barahona about a meeting with a former official of
the Ministry at the Boulevard Balboa restaurant on July 8, when Barahona said he would report the irregularity of MIDES if not named the director of the National Secretariat for Disabilities (SENADIS).

Ferrufino would be presenting a complaint of alleged blackmail.