Former Panamanian Vice President Detained for Role in Corruption Scandal

A Panamanian court ordered the pre-trial detention of former Vice President Felipe Virzi Wednesday, as the former politician faces allegations of corruption.

Investigators have alleged Virzi accepted US$10 million in kickbacks for awarding an irrigation contract to an Ecuadorean company.

The irrigation system was never constructed, and company executives have been arrested.

Virzi has denied the allegations against him, and has been defended by former president Ricardo Martinelli.

“For 40 years we have conducted all kinds of legal business with Pipo Virzi, buying, selling, renting and borrowing. Why is this getting so much negative attention?” Martinelli said Monday, referring to Virzi by his nickname “Pipo.”

Yet Martinelli himself is also facing corruption charges.

The charge against him is based on the purchase of US$45 million dollars worth of dehydrated food bought after a direct order of Matinelli by the National Help Program (PAN). The last two directors of the PAN, who are also being investigated, testified that the former president forced them to make the purchase and also ordered a specific company to be benefited.

Martinelli's defense team, however, argues that this case is political persecution and have sued the Panamanian state at the Inter-American Court of Human Rights.

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