Panamas role in Odebrecht bribery scandal

AS BRAZIL’S investigation into its multi million dollars bribery scandal involving construction company Norberto Odebrecht evoves,Panama has surfaced as the center of a complex plan allegedly conceal tens of millions of dollars to be used for bribes.

The continuing cozy relationship between the government and Odebrect, including the recent awarding of contracts for the building of Metro Line 2 and a $500 million development project in Colon, is raising concerns among political observers.
Panama is now playing an essential role into the investigation by prosecutors in Brazil into Marcelo Odebrecht, president of the company, says La Prensa.
Evidence has been uncovered that shows a company incorporated in Panama, Constructora Internacional del Sur, received more than $47 million in an account at Credicorp Bank.
A fact that drew the attention of prosecutors was that the company changed its resident agent three weeks after former President Ricardo Martinelli took office in July 2009.
Prosecutors have alleged that the hiding of assets was done with the participation of Francisco “Frankie” Martinelli, a cousin of the former president, who is also linked to a secret contract of more than $2 million that was signed by the consortium led by Odebrecht that built line 1 of the Metro.
Constructora Internacional del Sur was dissolved in August 2014 in the midst of the investigation into the financial activities of Odebrecht.
Subsequent investigations found that the company had accounts on three continents that were used to make payments of $3 million to Petrobras executives from the Odebrecht Group.
Prosecutors have said that Odebrecht used Panama as the key to its scheme to hide and launder money during the past 10 years.
The route that the money took was complex to make it difficult to track. Funds passed through Europe, Africa and America.
On June 19, Marcelo Odebrecht was jailed for money laundering and corruption. Evidence revealed by prosecutors showed that Panama was a key component in those activities, as well as other jurisdictions, namely Antigua, Austria, Belize, the British Virgin Islands, Uruguay, Monaco and Switzerland.