Italian Soap Opera reveals non-functioning $125 million radar

 THE SCANDAL over the purchase of helicopters and radars in a $250 million deal with Italian consortium Finmeccanica, with allegations of bribery of high ranking Panamanians still being batted around in Italian courts (described by ex-president Ricardo Martinelli as a soap opera) has taken a new turn.

The radars acquired by the administration of Ricardo Martinelli at a cost of $125 million from Selex Sistemi Integrati – a subsidiary of Finmeccanicca – are not fulfilling their primary function.
 President Juan Carlos Varela said Senan Director Belsio González, informed him that the eight radars that have been installed so far cannot detect the speedboats used by drug smugglers to carry shipments to Panama because they are designed to scan for larger boats.

“I always said that the problem of the radars was serious. After 30 days in government, the evidence suggests that they are not functional. We have to reassess and redefine the future of this project,” said the president on a on Thursday, July 30.

 He said the government was presented with a bill for 20 million euros ($26.8 million) by the company, but Panama has ordered a 30-day delay and he did not rule out the possibility of revoking the contract.

Former Minister of Security José Raúl Mulino, who negotiated and defended the purchase of the radars,
he said that they radars have a “calibration” problem which is being reciewed by Selex company technicians.
Former Molirena Deputy Jorge Alberto Rosas asked that Mulino he held accountable for the contract.
In the past, he has demanded that Mulino explain how a contract for 24 radars in Turkey cost $40 million, while Panama paid three times as much for fewer radars.
Meanwhile, González said by telephone that he can’t deny or confirm what Varela said, but confirmed that he will be presenting a detailed report on the situation at the Cabinet Council Tuesday reports La Prensa.
Security Minister Rodolfo Aguilera said that a possible revision of the contract “is under way.”

The Ministry of Security has also appointed a team of lawyers to determine if the agreement with the Italian company was violated.

In addition to the 19 radars, Panama acquired six helicopters and a digital map from from Finmeccanica bringing the state investment $250 million
Days before leaving power, told media that 8 of the 19 radars had been installed, while the remaining 11 had not been installed due to technical reasons and the terrain of the area where they will be located. “I hope to go withthe new minister to the logistics hub in Cocoli to show him the eight radars that are operating,” Mulino said at the time.
The history of 19 radar has its genesis in August 2010 when the Cabinet Council, then led by Martinelli, gave the green light to purchase them at a cost of $125 million. That included the supply and installation of the equipment as well as the training of the personnel to operate them.
The first radars were installed at Senan stations along the Pacific coast to monitor the provinces of Panama, Veraguas and Chiriqui.
The contract has been one of the larger scandals of the government of Martinelli, says La Prensa
Several criminal proceedings have been opened in Italy against Italian businessman Valter Lavítola, who allegedly facilitated bribes from the company. He also allegedly sought the payment of a commission of $25 million for these contracts to be deposited in accounts in the name of a Panamanian company called Agafea Corp.
The money, prosecutors allege, was for distribution among Martinelli and his closest officials. The trial began in June and will continue next September.

In court documents in Italy, Martinelli is mentioned 1,475 times, and that is only in the public part of the summary. There are many more pages of the summary evidence that have not yet been made public. Says La Prensa.
Martinelli has called the court proceedings an Italian soap opera.