Panama corruption allegations.
State Prosecutor Rigoberto Gonzalez announced on August 8 the launch of a probe into allegations made against President Juan Carlos Varela, by Brazilian-Spanish lawyer Rodrigo Tacla Duran. Tacla’s remarks, made in a July 27 article in Spanish newspaper El Pais, suggest Varela was involved in corruption linked to Brazilian construction firm Odebrecht. Although not formally a direct investigation of the president, the inquiry, and any potential charges that come out of it, will increase popular criticism of Varela’s government and further undermine his political standing.
Spanish investigations into Odebrecht’s consortium partners could spark a related probe into the financing of the Panama subway project.
Investigations into Panama’s financing and infrastructure sector may discourage potential foreign investment plans.
The government’s falling popularity will encourage the opposition to step up legislative challenges ahead of the 2019 elections.
