Canal director faces bribery reports

THE PUBLIC Ministry  has opened an investigation of a member of the board directors of the Panama Canal Authority (ACP), and a Panama businessmen,  for alleged bribery.

Under the legal  spotlight are Lourdes Castillo appointed to the ACP board by ex-president Ricardo Mrtinelli, and Samuel Israel. They have admitted to being the signatory of companies that are being investigated by the Ministry but have denied categorically that payments made to the companies in which they appear as signatories were a product of bribes.

The bribes were allegedly paid through the company Pele System Inc. in exchange for a contract from the Panama Maritime Authority under the previous government to provide inspection services for vessels according to a La Prensa investigation,

“They have found no evidence that this was a bribe,” said Castillo, who  and threatened to sue La Prensa. She was appointed to the ACO Board in 2013

Meanwhile, Israel said that Pele System made the payments in exchange for professional services of his company for software installation.

The third anti-corruption prosecutor has said they are the beneficiaries of three societies incorporated in the British Virgin Islands that received payments.

Castillo appeared as a signatory of Cliverstone Advisory Ltd, a company that received $2.5 million

Israel appeared as a signatory of the societies Liberty Release Co., which received $259,000 in payments, and First Administration Ltd., which allegedly received $333,000.

The name of a prominent Panamenista deputy, has also surfaced during the investigation. He is  accused by Castillo of threatening to denounce her