3 criminal inquiries into Finmeccanica security contract

WHILE  Three criminal investigations have been opened into the $250 million contract for security equipment signed between Panama’s former government and Italian defense contractor Finmeccanica, senior officials from the company and high ranking  Italian politicians have been on a sales tour  of other countries in Latin America.

Fourth Anti-Corruption Prosecutor Ruth Morcillo is investigating the contract to purchase six helicopters from AgustaWestland at a cost of about $100 million, while Sixth Anti-Corruption Prosecutor Aurelio Vásquez is investigating the purchase of a digital mapping system from Telespazio for about $25 million. The final investigation is being carried out by Third Anti-Corruption Prosecutor Zuleyka Moore for the acquisition of 19 radars for $125 million from Selex. All those companies are subsidiaries of Finmeccanica.

In the last case, former security officials Alejandro Garuz and José Raúl Mulino have been charged with corruption reports La Prensa.

The Public Ministry reported Friday, Nov, 20, that it has requested documents from the Ministry of Public Security related to the acquisition of the helicopters. They were delivered in 2013 and are currently being used by the Aeronaval service. While questions have been raised about their suitability for use in Panama, their purchase was perhaps the least controversial part of the contract says La Prensa.

In the case of the digital map, the former government authorized payments of $9 million, but the company has so far not delivered the product. The contract has been suspended by the Supreme Court due to alleged irregularities.

The contract to purchase the radars has also been suspended as  questions  arose about whether about their  ability  to detect boats typically used by drug traffickers, which was the justification for buying them.