Martinelli used millions of public funds to buy media empire – Prosecutor

In the November 29 hearing of the New Business case Prosecutor Uris Vargas began his speech by explaining how the purchase of Epasa was managed with millions of dollars of public funds, channeled through the New Business company. The money came from contracts granted to different companies and societies, for the execution of public works. The prosecutor specifically mentioned the contract for the construction of a new building for the National Assembly, awarded to the company Constructora Corcione.

Vargas explained how the money circulated through different accounts and companies, “to reach the same destination in a simulated way”, which in this case was the New Business company.

Martinelli’s participation is accredited, since it was proven that the former president contractors of the Panamanian State, contributed $11.4 million through the company Ricamar Financial Company Inc., ordered the first payment of $5 million for the purchase of Epasa and integrated the sum of $10 million obtained through a loan from Global Bank to the real estate company TPA, SA

Reference was made to the testimonies of David Ochi, Felipe Virzi, Samuel Jiménez, and Riccardo Francolini , in which it is stated that “fictitious contracts” were drawn up, to give an appearance of legality to the entire operation.

The prosecutor cited a statement by the lawyer Ricardo Chanis, who for a time chaired and was a resident agent of Epasa, in which he certifies that 60% of the company’s shares are under the control of Martinelli. The remaining 40% was held by Henry Mizrachi Cohen, who -according to the Public Ministry- transferred some shares to the Panamanian State when he found out about the investigation for alleged money laundering. However, it is Martinelli who exercises “final control of these actions.”

The defense began by saying that the file is a fable, that his client is prosecuted for “political motivations” and that the investigation was carried out based on rumors. He also insisted that his defendant is “protected” by the principle of specialty set forth in the bilateral extradition treaty between Panama and the United States and that he enjoys immunity as a member of Parlacen (although he resigned from that body in July 2018), although all this has already been disqualified by different judicial instances.

“Here there is a meeting between merchants that took place to contribute funds for the acquisition of a medium,” he remarked, insisting that the funds are legal and pointing out that much of the money that Martinelli contributed was accredited in the declaration of patrimonial assets that he presented when he took office as President of the Republic on July 1, 2009. Camacho did not show statement of assets, which has never been disclosed.