Panama convicts ex-president of money laundering

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Panama’s former President Ricardo Martinelli was sentenced Tuesday to 10 years in prison for money laundering, 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 to buy 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 Tuesday he would appeal the verdict.

Panama, which is set to become the fastest growing economy in Latin America this year, will hold general elections in May 2024. Martinelli, another former president, Martin Torrijos, and current Vice President José Gabriel Carrizo have all said they will run.

The vote will take place as the financial services and logistics hub seeks to rid itself of its image as a haven for questionable money. It hopes that soon it will be removed from the list of countries not doing enough to stop financial crime.

Martinelli, 71, who was president from 2009 to 2014, also faces separate charges related to bribes paid by Brazilian construction firm Odebrecht. However, Martinelli still has a large base of support, with CID-Gallup’s April poll rating him in good Ahead of other aspirants.

He had two sons convicted Odebrecht was charged in a US court in 2022 with handling millions of dollars in bribes, 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 were banned from entering the United States for being involved in “significant corruption” by taking bribes to improperly award contracts while he was a politician.

Martinelli left Panama for Florida shortly after leaving office, as his conduct was under investigation. 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 the Israeli company NSO Group.

Martinelli’s lawyers said Tuesday that the sentence would not legally affect his candidacy, as he could still appeal. The constitution states that anyone convicted of an offense committed intentionally shall be punished with imprisonment of more than five years. Inappropriate 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.