Prosecutors checking on alleged bribe for Metro Line 1

CONCERNS over the bidding process for the Metro Line 2 project, awarded to the Brazilian construction firm Odebrecht, have been heightened by news of an investigation into alleged acts of corruption in the awarding of the contract for an investigation into alleged acts of corruption in the awarding of the contract for Line 1.

Naples prosecutors have sent a letter to their counterparts in Brazil asking for assistance in an investigation focused on an alleged bribe of $60 million paid to Panama officials that was handled by Italian businessman Valter Lavítola. Odebrecht was the primary contractor in the project. The prosecutors believe that it conspired with the Spanish firm FCC and the Italian firm Impregilo to fix the price of the bid.
It is not the first time that Odebrecht and Impregilo have been accused of price fixing. They also allegedly fixed the price for the award of a Metro project in 1999 in Brazil. That investigation, however, has been stalled for years, which some have said was due to political pressure, reports La Prensa
Odebrecht, along with FCC, was recently awarded the contract for the construction of Line 2 of the Panama Metro. That contract is also surrounded by controversy since its bid was substantially higher than a competitor.
Lavitola has also faced investigations for his involvement in alleged bribes paid by Italian contractors for lucrative contracts in Panama.