Panama Politics Briefs: President Varela not worried about investigation of the Minister of Housing
President Juan Carlos Varela said Thursday that
he expects Housing Minister Mario Etchelecu to be cleared of any wrongdoing in
an investigation into questionable contracts issued for Techos de Esperanza
program.
The probe is focused on payments made by the
Department of Social Assistance (DAS) that seemed to be structured to avoid
exceeding a $300,000 threshold that would have triggered legislative oversight.
"This is democracy working," Varela
said. "I am confident that the minister will not be charged, but he has to
go through the process."
He also maintained that the DAS is different
from the National Assistance Program (PAN), the scandal-ridden program it
replaced.
"A former PAN director was caught with $40
million in his bank account," Varela noted. He said that the current
probe, which is focused on the award of contracts, will uncover no wrongdoing,
as the government received proper value for money. He said that the program has
benefited thousands of people.
An estimated $15.3 million was spent on the
program. The money was divided between the companies Royal Construction Panamá,
Fiorazio de Panamá and Airco, S.A. Airco is owned by Pedro Vallarino Trombetta,
who was part of the board of Caja de Ahorros when the company received the
contract. That may be a violation of government regulations regarding the
issuing of contracts.
According to DAS Director Rafael Stanziola the
contracts were issued in accordance with the law.
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