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Panama is constantly plagued by foreigner and by citizens and now with this latest $8.5 million dollar intended for a mega sports project in David, Chiriqui, was used to buy a beach house, cancel private bank loans and fund trips to Europe, according to an audit of the Comptroller General revealing construction scams across the country led by a former vice-mayor of Panama.
The examination revealed that the Ciudad Deportiva Consortium David 2013 (made up of Condotte Panama, S.A .; Condotte America Inc .; Fifth House, S.A .; Advances Surfaces México, S.A., and LJV Sport,
S.A., de CV) got $8.6 million advance payment from the Panamanian Sports Institute (Pandeportes), as well as $653,000 in certificates which totaled $9.3 million but the project only advanced 4.43%, reports La Prensa
The auditors specified that from the advance, $700.000 was diverted to buy a beach house in Costa Esmeralda in San Carlos; another $235,000 went to the payment of air tickets and lodgings in Europe, and $2.7 million to cancel a loan in Multibank that was not related to the work. Another $5.6 million was diverted to three health centers, in the western district of Panama, Darién, and Veraguas.
The audit was delivered on January 29 to the anticorruption prosecutor of Descarga, Adela Heidy Cedeño.who is investigating Javier Tejeira, former director of Pandeportes Vernon Salazar Zurita, representative of Condotte Panamá, S.A., and Iván Arrocha Chevalier (owner of the beach house in San Carlos) and vice mayor of Panama 2004-2009). All three are in preventive detention.
BEACH VILLA IN SAN CARLOS, PANAMA
The original owner of the beach house told the auditors that he closed the sale with Arrocha Chevalier, and according to the audit, the $70,000 deposit was paid from funds from the David sports project.
The remaining $630,000 was canceled with funds from another State project: a sports center in Colón also awarded to the consortium.
The seller had the property in the name of Sofia Investment, S.A. The new owner kept it under that name and only went to the Public Registry to make a change in the board of directors the mother-in-law, the son and the wife of Arrocha Chevalier.
The former vice- mayor of the capital is now in preventive detention in the Directorate of Judicial Investigation (DIJ) and the house in Costa Esmeralda is under guard. by order of the Prosecutor.
Stylish travel
The management of Nice Tours revealed the payment by Iván Arrocha Chevalier. of $207,000 for air tickets, hotel reservations and car rental with driver And Destiny Travel staff, got $29,970 for executive class air tickets and accommodations in luxury suites at Baglioni Hotel Regina, in Rome, and the Me
Reina Victoria, in Madrid, and e “private luxury transport” service, for “unlimited” time.
According to the Comptroller’s Office, the contractor company used the account in Multibank to deposit and effect disbursements of money for other projects not related to David. Among these payments were included $5.6 million for three health center in Burunga, Arraiján; Sante Fe, in Darién, and El Tigre de los Amarillos in Soná, Veraguas, (all awarded to Condotte.).
In addition, $2.1 million was diverted to the sports city of Colón, a contract that also is under investigation because $21 million was disbursed and there was little progress in the work.
The audit notes that “the diversion of resources to activities not related to the project shows that the Pandeportes administration did not follow up on the use of the funds “I do not anticipate the execution of the work. ”
Interpol alert
On May 10, 2013, Javier Tejeira, director of Pandeportes, and Vernon Salazar Zurita, the legal representative of Condotte Panamá, S.A. that had a participation of 57% in the consortium, signed the contract for the construction of the David sports city. Both are – like Arrocha Chevalier – in preventive detention. by order of the prosecutor’s office which has also issued an Interpol red alert for Luis Javier Del Valle Treviño,
The prosecutor’s office issued a precautionary measure for weekly notification to Delio José De León Mela, the legal representative of Condotte América Inc., a company that had a 3% stake in the consortium.
Maria del C. Salaverry de Garuz, the legal representative of Casa Quinta, S.A., cannot currently be investigated by the prosecution as she has electoral criminal jurisdiction due to her participation in internal elections of the CD part.
Chronicles of Monte Friesner - Financial Crime Analyst 
Contributed by Andrei Slavenkov (Netherlands) - Investigative Consultant
