Martinelli cancels Mexico trip as bribes scandal widens

President Ricardo Martinelli,  has suspended his trip to the World Economic Forum  in Mexico as the  corruption scandal of alleged kickbacks from an Italian  “fixer”  widens.

Martinelli’s name along with that of Panama City Mayor Roxana Mendez. has been linked by prosecutors  to bribes paid by Valter Lavitola who was arrested in Rome on Monday, April 16.

Meanwhile, Panama’s Attorney General, Jose Ayu Prado, confirmed the start of an investigation of the crime by  public authorities for the alleged payment of "kickbacks" in contracts for the construction of modular cells and prisons. 

Ayu Prado said he will ask international legal assistance, from Italy’s Ministry of Justice of Italy, based on the UN Convention against Corruption

 Government spokesman Luis Eduardo Camacho . Speaking on  RPC Radio,  rejected international accusations that Martinelli would be embroiled in a the scandal uncovered in Italy. but the president made ??the decision to cancel his trip to Mexico, where he was scheduled to meet with the president and World Economic Forum founder Klaus Schwab, and CEOs of companies from around the world. 

Italian businessman Lavitola  is the central central figure in the affair which prosecutors say involves Martinelli and Panama's mayor  Roxana Mendez.

 Lavítola was arrested Monday in Rome after returning from Argentina where he flew after remaining in hiding in Panama for three months, He was taken to jail in Naples taken ifor investigation of  a corruption case involving the former prime minister Silvio Berlusconi and according to prosecution documents, President Martinelli  and probably Panamanian officials.

 The detainee played a key role in formalizing contracts between Panama and the Italian firm Finmeccanica, for $250 million for the purchase of 19 radar, six helicopters and a digital map.  said Italian and world media reports based on data from the Italian prosecution, Martinelli received "profits and sums of cash " related to the failed contract to build four modular prison in Panama for $176 million.

Camacho said that the complaint on the construction of prisons in this country for Italian companies "has neither head nor tail." 

According to official investigations started in Italy, Panama’s former Minister of Government Panama Roxana Mendez and other unidentified Panamanian officials have also been bribed by Lavítola.

Mendez categorically refuted on Monday. April 16 allegations of bribery and the alleged existence of contracts.

Media outlets in Italy have revealed details of a trip to the island of Sardinia, from August 18 to 21  2011, involving Martinelli, two of his ministers and a member of the Supreme Court, "with their wives and companions, " says La Prensa

Reports of the scandal, linking Martinelli to the bribes, have been reported around the world including the European edition of the prestigious Financial Times. it reports "according to court documents, Mr. Lavítola offered money and goods worth 28 million euros for Ricardo Martinelli, Panama's president and other officials of his government in exchange for contracts for building works” The newspaper reports frustrated efforts to get an official reaction from the Embassy of Panama in Rome.