Special Prosecutor for Organized Crime Calls For Criminal Trial Against Jaime Salas and Others in Corruption Case

(Panama-Guide) - La Prensa -  Panama's Special Prosecutor Against Organized Crime, Jose Ayu Prado, yesterday asked the Second Criminal Court to open criminal proceedings on charges of embezzlement and money laundering against the former Municipal Engineer of Panama City, Jaime Salas. During his arguments presented at the preliminary hearing, Ayu Prado said Salas created two companies used as fronts, from his office in Panama City, to increase is personal assets without justification and to launder money. The prosecutor added that for this purpose Salas used used straw buyers, who served as directors of these companies and false property owners.

Ayu Prado told the court that Salas has not been able to justify, among other funds, how he deposited $40,000 dollars in a Certificate of Deposit, and how he has $300,000 dollars in an offshore account. His salary as a city employee was $5,000 per month. What's more, the prosecutor said Salas awarded two construction contracts for the Municipal Government of Panama City to the companies Edificaciones Portobello y Joed S.A., even though at the time Salas was the City Engineer and the owner of the companies, although he was not a member of the board of directors. The Prosecutor Ayu Prado also asked the court to call Elsilda Rodríguez and Hugo Sánchez to trial, both directors of the companies being investigated. Meanwhile, the prosecutor requested provisional dismissal of the charges for Edgardo Araúz and Rubén Darío Pérez, the first a director and the second the administrator of Edificaciones Portobello.

Juan Garcia, Salas' defense lawyer, said he can account for all of his banking transactions, that Salas never signed the contracts with the Municipality, and that they were never sent to the office of the Comptroller. Luis Carlos Cabezas, the defense lawyer for Sanchez and Araúz, described the prosecutor as "inquisitive and cynical," because he felt he had violated the defendants' due process rights. "Beware that the investigators of today do not become the investigated tomorrow," he said. Salas said he was confident that he can prove his innocence in this case.

Judge Maria Lourdes Estrada said she would use the legal limit of 30 days to consider the case before issuing her decision.

*********

Original Source: Panama-Guide

Date Retrieved: October 29, 2010.