Panama’s Former Public Works Minister Federico Suárez Sentenced to 16 Years in Prison for Embezzlement.

Former Minister of Public Works Federico José “Pepe” Suárez pictured below was sentenced to 16 years in prison for the crime of embezzlement.  Through Edict No. 765, released by the First Liquidation Court of Criminal Cases on Tuesday afternoon, it is reported that Judge Águeda Rentería imposed the criminal sanction on Suárez for considering that there were overpricing’s in the construction of the Domingo Díaz Avenue and Historical Heritage projects.  Judge Rentería also acquitted Marcelo Luis De La Rosa, León Emilio Halphen, Héctor Castillo, Juan Manuel Vásquez, Mauricio Cort, and Sergio Fernando del Sour.

The prosecution had requested the acquittal of all of them except De La Rosa.  Since it is a first instance ruling, it is appealable.  Suárez was sentenced to 16 years in prison: 8 years for the crime committed in the design and construction project of the Domingo Díaz, awarded to the consortium formed by Ingenieros Civiles Asociados (ICA) and Constructora Meco; the other 8 years, for the road recovery contract called Historical Heritage,  Both contracts were subject to a forensic audit carried out by Federico Humbert, comptroller during the period 2014-2019.

Domingo Díaz Project.

$237.6 Million

Final price.

$190.1 Million

Reasonable price.

$47.3 Million

Difference.

In the case of the Domingo Díaz road, the work was awarded for $237.5 million, but according to the audit, it had a reasonable case of $190 million, which yields a possible overpricing of $47.5 million.

Historical Heritage Project

$255.5 Million

Final price

$204 Million

Reasonable price

$51.5 Million

Difference

Meanwhile, the Historical Heritage works, carried out by Odebrecht, had a final price of $255 million. The audit estimates that the reasonable price for these works is $204 million. The cost overrun, therefore, would be $51.5 million. Suárez, who is currently free, already has another conviction, this time for money laundering in the so-called Blue Apple case. That sentence consists of 158 months in prison and a fine of $27.4 million.