Bank scandal reveals links to Martinelli inner circle

THE SCANDAL surrounding the state owned bank, Caja de Ahorros (CA)  and its former chairman  continues to widen with calls for the present management  to get involved as a complainant.

The case against Riccardo Francolini, and other former officers at the bank revolves around a $10 million loan granted to to consortium HPC-Contratas-P&V for the construction of a convention center in Amador.

Prosecutors say much of the money was siphoned into shell companies that had no connection to the project.

Caja de Ahorros (CA) has remained apart from the investigation that involves its former chairman,

The institution, in a statement, said that: “This is a process driven by the first anti-corruption prosecutor in which the bank is not complainant, so we have no comment or opinion at this time.”

Former Comptroller Alvin Weeden questioned the position of the bank, saying that it may have been harmed in the matter and that it should be added as a complainant.

He said it also loses its right to appeal any decision if it does not become involved in the case, and that it has a duty to defend the economic interests of the state.

Prosecutor Tania Sterling announced Thursday, October 13,  that five people are detained in the case, including Francolini. Another defendant is former bank official Rodrigo Arosemena.

Officials also seized a computer from Francolini’s  Costa  Del Este home in a raid Wednesday.

Prosecutors say that some $7 million was diverted into an account owned by the shell company Summer Venture, Inc., which has been linked to Ricardo Calvo and Felipe Virzi, close associates of former President Ricardo Martinelli, who appointed Francolini to the position at Caja de Ahorros.

There is no evidence that Summer Venture provided any kind of service in exchange for the money.
Virzi  and Ricardo Calvo  were recently freed by judges in another case involving money laundering.The decision is being appealed