Receive free Panama updates
We’ll send you a myFT Daily Digest email rounding up the latest Panama news every morning.
Panama’s former president Ricardo Martinelli was sentenced to 10 years in prison for money laundering on Tuesday, throwing into question the popular politician’s bid to be re-elected next year.
The supermarket tycoon was convicted of laundering money from public contracts through a complex scheme in order to purchase a media company, and was also ordered to pay a fine of $19.2 million.
Martinelli has said he believes the charges are politically motivated and his lawyers said on Tuesday that he would appeal against the decision.
Panama, which is set to be the fastest growing economy in Latin America this year, will hold general elections in May 2024. Martinelli, another former president, Martin Torrijos and the current vice-president José Gabriel Carrizo have all said they will run.
The vote will take place as the financial services and logistics hub tries to shake off its image of as a haven for shady money. It expects soon to be struck off a list of countries not doing enough to stop financial crime.
Martinelli, 71, who was president from 2009 to 2014, is also facing separate charges related to bribes paid by Brazilian construction firm Odebrecht. Martinelli still has a considerable base of support, however, with an April poll by CID-Gallup putting him well ahead of the other hopefuls.
Two of his sons were convicted in a US court in 2022 for laundering millions of dollars in bribes from Odebrecht, some of which US prosecutors said was spent on a yacht and apartment in the US.
In January, the US government banned Martinelli and his immediate family from entering the US for his involvement in “significant corruption” by accepting bribes for improperly awarding contracts while he was leader.
Martinelli left Panama for Florida soon after leaving office, as investigations into his conduct were under way. In 2018, the US extradited him to Panama on separate charges of illegally wiretapping his political opponents and business competitors using Pegasus software made by Israeli company NSO Group.
Martinelli’s lawyers said on Tuesday that the conviction does not legally affect his candidacy, as he can still appeal. The constitution says that anyone sentenced for a deliberate crime to more than five years in prison is ineligible for the presidency.
Current president Laurentino Cortizo cannot run for a second consecutive term, but former leaders are allowed two non-consecutive five year terms.
Read the full article here
