Ex-Ministers among 33 in Blue Apple scandal

Details of the operation of the multi-million  “Blue Apple” bribery scandal involving cabinet ministers and officials of the Ricardo Martinelli administration land local construction companies were laid bare to media on Monday, January 15, by Attorney General Kenia Porcell.

Thirty-three people have been hauled into the Public Ministry anti-corruption net and an investigation has been opened into the  Financial Analysis Unit (UAF), which failed to take action when three local banks reported suspicious transactions.

Later millions of dollars were transferred to Hong Kong, The Virgin Islands, Switzerland and the United States for the benefit of the corrupt officials.

Porcell said the highest officials of the Ministry of Housing and Territorial Planning (Miviot) and the Ministry of Public Works (MOP) demanded that construction companies pay bribes of between 5% and 10% to “expedite administrative procedures” between 2010 and 2011.

The  MOP  Minister was Federico Suarez and in the Miviot Carlos Duboy, who resigned after the break-up of the alliance in August 2011.

Porcell said the officials who are still being investigated “have electoral criminal jurisdiction” and the Electoral Tribunal is being asked to lift it.

The bribes were made through the paper company Blue Apple Services, S.A. (BAS), which handled about $40 million in five bank accounts, in three local banks:  Banco General, Capital Bank and Banesco.

So far $20 million in cash and  $5 million in assets such as villas, apartments and cars has been recovered,  said Porcell. In addition, $9 million has been detected outside the country.

Seven companies are investigated: Conalvías. Meco, Conceptos y Espacios, Bagatrac, Constructora Rodsa, CS Constructores e Ingeniería Rec.

Their representatives have surrendered to investigation and have identified to whom the money went, who was part of the organization, the destination of the profits, in addition to returning the illicit money.

In addition, five effective collaboration agreements have been made, of which three have been validated.

For alleged money laundering, 21 persons are investigated, of which three are in preventive detention.  Money laundering is punishable by five to twelve years in prison.

The company Blue Apple Services (BAS) was incorporated on May 23, 2011, in Panama and dissolved on August 23, 2013.   The  company served as a front for receiving and introducing illicit money into  legal economic traffic (laundering).

A savings account in Capital Bank was opened for $1 million. In the same bank, another current account was opened for $12.5 million. Capital Bank also opened two fixed terms: one for $2.3 million and another for $ 500,000. In Banco General, one was opened for $11.3 million and one in Banesco for $13 million.

The banks ordered the closure of the bank accounts after considering that the operations were unusual and out of transactional profile and alerted the Financial Analysis Unit.

In addition, other paper companies created to move public money were used by Blue Apple Societies were created for one year only in order to move the corruption money explained Porcell.

Global Factor) a subsidiary of Global Bank Corporation,  was used   for credit  assignments and direct payments to give the appearance of legality to corruption money

Global Bank, has issued a statement that the contracts subject to such a commercial exercise were the result of State tenders, duly adjudicated and endorsed, analyzed and investigated the origin of the funds, which were received from the MEF.

David Diaz, Assistant General Secretary of the MP, said “Up to this moment we have not been able to identify any report or any action of the UAF to the MP at that time, and we have initiated an investigation.”