Bribery scandal firm appeals contract cancelation

THE ECUADORIAN firm in the center of a $10 million bribery scandal involving  members, of ex-president Ricardo Martinelli’s inner circle  has appealed the decision of the Ministry of Agricultural Development (MIDA) to cancel the contract for the irrigation system in Tonosí.

Hidalgo & Hidalgo (H&H) and Panama’s government  will now have to return to the negotiating table,” said Minister Jorge Arango.

The ministry canceled the contract on Nov. 2, but the decision was appealed by the company, which was awarded the $155 million contract in 2012.

The company received $31 million over 19 months, but made no visible progress on the project. An audit revealed that $22.6 million of the money was wasted.

So far the government has recovered $10 million of those funds, which were allegedly used to bribe officials. It has also charged a number of former government officials, a former vice president, Pipi Virzi  and company representatives with corruption.