OFF THE CUFF: Following the trail of the Zero Circle

EVERY TIME you begin to think there are no more nasty items left in the local Pandora’s box of enrichment plots another one pops up, frequently through the investigative  reporters of La Prensa and La Estrella, many producing results pushing  authorities into taking action. Martinelli owned  Panama  America is predictably not party to the revelations.

 The latest focuses on Luis  Cucalón.

Just  10 months after he, as the then General Director of Revenue, signed a direct contract with debt collector Cobranzas  del Istmo, SA to recover tax arrears in Panama, businesses across the Isthmus  were forced to buy controversial $1500, tax printers to  give “greater control and reduce tax evasion”

Cucalon claimed: “With this measure state revenue will rise between $250 million and   $300 million a year will rise”

What he did not mention,says La Prensa, was that a group of local businessmen, part of Ricardo Martinelli’s inner (zero) circle, would swell their bank balances as  the providers of the machines.

One of them was Christopher Salerno Ballestas, former partner of Cucalón, who went into business with his daughter Maria Alessandra Salerno Gomez, legal representative  of the collection agency , that billed $47.1 million in fees for the collection of delinquent taxes,  and whose  management is under investigation.

Salerno Ballestas and his daughter were to sell the printers in association with Gaby Gabriel Btesha cloae friend of former President Ricardo Martinelli, and businessman partner Felipe Pipo Virzi
whose name surfaced during the trial of jailed Supreme Court Judge, Moncada Luna.

Btesh and Salerno were linked in the Real Space Corporation, which was associated with the company The Factory HKA Panama, with Venezuelan capital which had international experience in selling tax equipment.

Real Space Corporation was represented by Ailedsabel Gonzalez, attorney for Btesh & Virzi  with the infamous Paitilla landfill scam.

An employee of Salerno Ballestas was made president of the company which, coincidentally, managed the purchase-for $1.4 million- of the offices of the collection agency, in the H2O building on Balboa Avenue, also a Btesh project.

On June 8, 2011, the Directorate General of Revenue (DGI) authorized – The Factory HKA Panama to sell the tax printers, once the lawyer for the Btesh & Virzi became a shareholder.

The  business, ultimately, represented millions  in billings. Says La Prensa.

Cucalón warned businesses that the use of the machines was “mandatory” and those who refused to buy them would be fined up to $15,000.

As expected, the resolution authorizing  The Factory HKA to sell the printers was not signed by Cucalón. Instead, he got  Esmeralda George, acting director of the DGI  to sign because  Cucalón had trade links with Salerno Ballestas including NBA Store in Panama, SA, and IDS Holding, the holding company of the shares of the failed Sears Panama.

Cucalón told La Prensa  onWednesday, May 5 that The Factory HKA Panama won approval of the DGI after having the endorsement of the Government Innovation Authority, and said he was unaware that the shareholders of the  collections agency  and Gaby Btesh were linked to the company.

But not only Btesh sold printers says La Prensa, From one of the premises located in the plaza  of Super 99 in Costa del Este, a company, authorized to distribute them, operated.

In the company surfaces Dioger Ulises Gonzalez, father of the former Director of Immigration Maria Cristina Gonzalez. Dioger Gonzalez is involved in a multiplicity of corporations that belong to the former president and his family.

The business of The Factory HKA Panama prospered until March 7, 2012, the Thirteenth Court of Civil Circuit of Panama decreed a seizure of their property of up to $3 million.

INFIGHTING

Real Space Corporation argued that its Venezuelan partners breached a “contract of commission” which produced “serious and extensive damage”.

After the seizure  the Thirteenth Court appointed a liquidator that, ultimately, sued Salerno Ballestas for falsely  signing a note to Multibank to negotiate a check for $284 000. Surprisingly, the check ended up in the bank account of another company of Salerno.

The La Prensa investigation also itemizes Cucalon family multiple deals and apartment purchases without mortgages or loans  through  M. B. Panama Village -created 31 days after the start of the Martinelli government Cucalon resigned from the DGI after the revelations of the millions garnered by the debt collecting agency.

  Cucalón told reporters that he has long been a millionaire and acquired these buildings “with the money that I have since 1998, when I sold my business for   $7 million to Primer Banco del Istmo”.

He confirmed that his residence is located in the Pacific Village building and denied having bought apartments or offices from Btesh or Gabriel Christopher Salerno. He has distanced himself from his “partner” Salerno, indicating that they have no contact after the scandal of the back tax collection.

The web of intrigue and insider deals continues to expand with more threads leading to the inner