Criminal charges against ex-Revenue boss

PANAMA’S Ministry of Economy and Finance(MEF)  has filed a criminal complaint against Luis Cucalón, the former director of the General Revenue Department, for allegedly falsifying public documents in the hiring of a debt collecting company.

 The crime is punishable by up to eight years in prison reports La Prensa
The announcement is the latest in a seemingly endless series of criminal charges against prominent members of the previous administration during the reign of Ricardo Martinelli.
The indictment refers to the agreement between the department and an agreement signed with the company Cobranzas del Istmo in 2010 to recover delinquent taxes.
The ministry said the contract contains a false statement because it was issued without going through a competitive bidding process.
“This procedure was never performed, but it was inserted as a condition in the contract,” said the complaint.
The Public Procurement Act requires contracts with a value of more than $300,000 to be approved by the National Economic Council, and those that exceed $3 million to be approved by the Cabinet Council. Contracts under $300,000 need the approval of the Ministry.
The Ministry determined that Cucalón did not seek any of these approvals.
Cucalón said that the hiring of the company was pursuant to an executive decree and that the contract did not have a fixed amount, since the fees depended on how much money was regained.
Cucalón also argued that the contract was reviewed by Supreme Court Justice Harry Diaz, who at the time was a legal advisor to Minister of Finance Dulcidio De La Guardia, who was vice minister at the time.
The Ministry, however, has argued that the contract should have been evaluated by the Cabinet Council since the company has been paid more than $47 million.
Cucalón said that more than $400 million has been recovered by the state, meaning the contract has benefited the government.
The Ministry has also filed a separate request with the Supreme Court challenging the legality of the contract. The court has suspended the company’s tax collections until it can rule on the matter.
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