OFF THE CUFF: Odebrechts creative accounting

MORE evidence of the cozy relationship between the Ricardo Martinelli administration and the scandal ridden Brazilian construction giant, Norberto Odebrecht has surfaced this week with the revelation of an addendum to the contract for the third phase of the Cinta Costera.

 The addendum, signed by the Ministry of Public Works was the fourth since the work was awarded in 2011, It recognized that certain jobs  included in the original contract,were deleted for a total of $4,690,80 and 50 cents
However, Odebrecht did not return one cent because the same addendum contained additional jobs costing –coincidentally – exactly the same amount as the money to be returned, not a penny more nor a penny less reports La Prensa.

The addendum was signed by Ramon Arosemena Minister of Public Works; and Heitor De Abreu Azevedo and Monica Maria Vieira de Melo, Odebrecht proxies, on October 28 2014. It was endorsed on December 2 by the then comptroller Gioconda Torres de Bianchini.

La Prensa tried to get an explanation from Arosemena, but he was traveling in Mexico, so he wassent an email asking him to explain, among other things, the similarity in the amounts of increased and eliminated jobs. There was no response.

The . Odebrecht document was unknown until. Odebrecht appeared before the Third Chamber of the Supreme Court, as part of its response to the administrative complaint filed by the Calicanto Foundation for a resolution issued on April 14, 2011 by the Court of annulment Public Procurement. It is not specified what the additional work was, as the addendum simply refers to them as “damages to public services.” We also know that the jobs were not directly associated with the third phase of the coastal strip, such as improving drainage of Parque Urraca -a space that is the responsibility of the Municipality of Panama and nine jobs costing $290,505.were done on Avenida Balboa.

Among the works that were canceled were the lighting of the walls of Casco Viejo estimated at $2.8 million. It also reduced the number of traffic lights placed on Avenida Balboa.
Ramon Ricardo Arias, OF the Calicanto Foundation, expressed his surprise at the existence of the fourth addendum. “How is it possible that that sign without an audit? There are too many serious questions to be appropriate to make an addendum of something that has not even audited, “he said.

On May 19, 2011, the MOP awarded the third phase of the coastal strip to Odebrecht at $776.9 million dollars. The amount was varied as addenda were approved: raising the cost to $782.1 million