Corruption focus on $517 million hospital project

THE CORRUPTION spotlight in Panama continues to light up some dark corners occupied by high profile figures  in the previous administration.

The latest entity to face the glare is The Social Security (CSS) entity  largely funded by deductions from the pay of lower income working Panamanians.

It has previously been exposed for major  “mistakes” in patient care, from the death of hundreds from diethylene glycol poisoning to dozens dead from,  Klebsiella pneumoniae resistant carbapenemase (KPC) and multiple baby deaths in a maternity unit.

Now the  focus has moved to alleged malfeasance. The  fifth anti-corruption prosecutor has requested the comptroller to  complete an audit of the $517 million  Hospital City  project that was commissioned by the previous government for $517 million.

Prosecutors have opened criminal investigations into former Health Minister Javier Diaz and former Social Security officials Guillermo Sáez-Llorens, Alberto Maggiori, Lizka Richards, Linnet Monterrey, Mirian de Sucre and Nelson Dueñas.

They are accused of offenses against the public administration for alleged irregularities in the management of the project, which was originally named after Ricardo Martinelli while he was still in office, an unprecedented action.

A judicial source confirmed that the prosecutor is also planning to question the Social Security board members who approved the project in 2012.

Investigations conducted by Prosecutor Janeth Rovetto determined that more than $200 million was paid to the contractor, Spanish company FCC, despite little work being done on the project. Irregularities were also discovered, such as the use of cheaper materials than those established by the contract. FCC is the consortium  partner with Odebrecht, recently awarded the  $1.8 billion Metro Line 2 project.

Dimas Guevara, Maggiori’s lawyer, said that his client is willing to appear before authorities.