No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsCrimeFormer Panama VP arrested in widening corruption probe

Former Panama VP arrested in widening corruption probe

PANAMA CITY – Panama’s former Vice President Felipe Virzi has been arrested for alleged money laundering, adding to a lengthening list of former associates of ex-President Ricardo Martinelli jailed on corruption charges.

Virzi, who was arrested overnight, was Martinelli’s business partner and the vice president of Panama from 1994 to 1999.

Anti-corruption prosecutors ordered Virzi’s arrest, alleging he received a $5 million payment for winning an irrigation system contract for an Ecuadoran company, Hidalgo & Hidalgo.

Prosecutors allege he then distributed the money among various private and business accounts associated with Martinelli.

“They say it is money laundering. But there was no money laundering, even if you accept the premise on which the accusations are based,” Virzi’s lawyer, José María Castillo, told reporters.

According to prosecutors, the state paid the company more than $37 million with Virzi acting as the go-between. After Hidalgo & Hidalgo obtained the irrigation contract, it allegedly paid Virzi $5 million, which he shared with several others, including Martinelli, according to prosecutors.

Virzi’s arrest follows those of several former ministers and close associates of Martinelli, who was president from 2009 to 2014.

The 63-year-old Martinelli is himself under investigation by Panama‘s Supreme Court in a case involving multi-million dollar cost overruns in food contracts for the country’s public schools.

Trending Now

Guatemala and U.S. Strengthen Cooperation on Migration and Transnational Crime

Migration and drug trafficking dominated a meeting on Friday between U.S. Deputy Secretary of State Christopher Landau and Guatemalan President Bernardo Arévalo, according to...

Costa Rica’s 2025 Flamingo Fishing Rodeo Highlights Sport and Conservation

With great fishing and a renewed focus on family fun, the Presidential Flamingo Fishing Rodeo presented by Marina Flamingo is set to take center stage in the world...

The Cocos-Galapagos Swimway Will Create a Legacy for Costa Rica and the World!

At the UN Oceans Conference in Nice, France, which Costa Rica is co-sponsoring, President Rodrigo Chaves Robles has an opportunity to make history by...

Costa Rica Continues Investigation into Miller Gardner’s Death

Costa Rican authorities are still investigating the tragic death of Miller Gardner, the 14-year-old son of former New York Yankees outfielder Brett Gardner, nearly...

Costa Rica’s Social Crisis Deepens Amid Political Clashes

Costa Rica is sliding into a state of structural violence fueled by political clashes, social division, and weakening institutions, according to a new National...

Costa Rica’s President Stirs Debate with Oil Exploration Stance

President Rodrigo Chaves has sparked controversy with his recent comments on oil exploration and the Escazú Agreement, defending his positions in an interview with...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica