Italian authorities following money trail of company selling to Panama

While Panamanian authorities remain mum about  the $333.3 million purchase of radar equipment  from  Italian conglomerate Finmeccanica, the scandal over alleged kickbacks to customers by the group of companies  deepens.

This past weekend, the Italian authorities arrested Manlio Fiore, a senior executive of Selex Sistemi Integrati, the company  that sold coastal surveillance systems (radar) to Panama for $125 million.

Fiore is accused of issuing false invoices and using a "secret fund" to make gifts to consultants, officials and political parties for the award of contracts.

The employer denied the allegations yesterday, as did the president of Finmeccanica, Pierfrancesco Guarguaglini.

However, Marcelo Iannilli, accountant of Arc Trade with direct contacts with Selex-admitted illegalities to the Italian authorities. Iannilli was arrested along with Fiore and Guido Pugliese, CEO of the company Enav also  of the Finmeccanica group.

The news from Italy caused a stir in the Ministry of Public Security, which promised a statement that never arrived.

Later in, Darien, where he was on tour, Deputy Minister of Security, Alejandro Garuz, defended the prices paid by Panama.

The Panamanian government signed a "turnkey" and without tender to acquire 19 Selex radar for $125 million.

The price agreed upon by the Government has been severely questioned, since Turkey got 24 similar radars for $33 million.

Security Minister, Jose Raul Mulino, has justified the price saying that Panama had to buy "all the technology" for the installation of the radar, unlike other countries who only buy upgrades for existing equipment.

Selex issued a statement on Tuesday explaining the contract price with Panama because it is "a brand new installation" and because some radars would be placed in places that can only be reached by helicopter.

 Italian Senator Elio Lannutti asked to investigate the association of Finmeccanica and ex consultant  Valter Lavítola with the agreement signed in June 2010 between former Italian Prime Minister Silvio Berlusconi and President Ricardo Martinelli, related to the donation of six patrol boats and purchased  from Finmeccanica.

Lavítola, possibly hiding in Panama, was described by President Martinelli as "very instrumental for the country."