Two expresidents face justice on August 1

Ahead of the Odebrecht Money Laundering trial set for  August 1, The US Secretary of State, Antony Blinken, announced Thursday the designation of former President Juan Carlos Varela as “ineligible” to enter that North American country, due to his participation “in significant acts of corruption” by accepting bribes in exchange for improperly granting contracts of government when he served as president and vice president.

In the statement, Blinken stated that “during his tenure as vice president and later as president of Panama, Varela accepted bribes in exchange for improperly awarding government contracts.”

Varela reacted three and a half hours later, stating that he will defend his honor and that of his family, and that he managed $20,000 million in works, “with transparency.”

Varela was vice president in the management of Ricardo Martinelli, who is also accused by the US government of being involved in acts of “significant corruption.”

Blinken stated that the designation “reaffirms” the commitment of the United States to combat “endemic corruption” in Panama.

“The Panamanian people place their trust in those who represent them. Corruption unfairly deprives the people of Panama of quality public services, such as schools, hospitals, and highways, to the detriment of their economic prospects and quality of life. If not addressed, corruption will continue to suppress Panama’s prosperity, weaken its democracy, and prevent the country from achieving its full potential,” said Blinken.

“We hope that today’s appointment urges elected officials and Panamanian authorities to combat entrenched corruption in the country and empower all those who uphold the rule of law. Corruption, anywhere, undermines the national security and economic health of the United States and its allies. We will continue to promote accountability for those involved in acts of significant corruption around the world,” he added.

It should be noted that officials designated under Section 7031(c), and their immediate family members, generally, are ineligible to enter the United States.

Varela is one of those called to trial for the Odebrecht case, considered the most important corruption process in recent times. With Varela, former President Martinelli is also charged, as well as his two sons and several of his ministers.

Varela appears in the case for the payments the construction company made to the presidential campaign of the Panameñista Party, during the period 2009-2014, as vice president of the Republic, and the 2014 electoral tournament, in which he was elected president.

The statements of his partner, doctor Jaime Lasso, another of those called to trial, were key in his case.

Before the prosecution, Lasso accepted having received the payments for the ex-president’s campaign. According to investigations by the prosecution, Odebrecht’s money reached the Panameñista Party through the Don James Foundation and through two companies: V-Tech and Poseidon Enterprises, all linked to Lasso.

During the hearing in the case, held in November 2022, Erasmo Elías Muñoz, one of Varela’s lawyers, stated that his client did not receive bribes from the construction company, but rather “donations.”