Italian prosecutor zooming in on Panamanian contracts

ITALY'S ATTORNEY General's  office in Naples  has launched an investigation into a contract to build prisons in Panama.

The contract was signed signed by President Ricardo Martinelli and former Italian Prime Minister Berlusconi.

Amid growing concerns over the   contract, with a key Italian witness claiming that he was pressured by a Panamanian Minister to buy land owned by colleagues, the government has dismissed the published stories and the Attorney General José Ayú Prado, said Wednesday, there was not sufficient evidence to initiate an official investigation into  the case in Panama.

 But Italy is delving deeply into the issue of prison construction in Panama and the people involved in the project, which did not materialize. Martinelli said he has canceled the project but it was too expensive, but the head of the company that had been awarded the contract said that he had been told  that if he wanted to continue negotiations he had to buy a plot of land and build a hospital.

According to documents accessed by La Prensa the new line of research in Italy includes the alleged commission of embezzlement, extortion, corruption and incitement to corruption of a person in the exercise of public functions.

The Italian Prosecutor is  seeking to clarify the participation of Italian Valter Lavítola and Panamanian government officials in the alleged payment of millions in commissions after the signing of contracts by the government with  the Italian group Finmeccanica  for  approximately $250 million.