Martinelli era radar scandal contract suspended

PANAMA has suspended the $125 million contract to install 19 radars acquired from to Selex Sistemi Integrati, a subsidiary of  scandal plagued Italian conglomerate Finmeccanica, due to "serious deficiencies in the performance of equipment installed.” said Security Minister Adolfo Aguilera reported on Tueday July 5.

The decision was taken at the Cabinet Council after security agencies detailed"the scope of problems with the radars to date," saidthe Ministry of Communication.

"Technical analysis indicates that the equipment fails to meet the specifications agreed in the contract that could be helpful to the security agencies in the fight against drug trafficking and organized crime activities," said the statement.

The security minister reported that the administration, led by Ricardo Martinelli, received the first seven radars received without objection and most of the payments were made reports La Prensa.

He said that now the government, through the portfolio he directs, will require that Selex, as soon as possible to enable the seven radars have been installed to date.

It will also request that tests be conducted "to prove if weaknesses in the  specifications agreed for the radars may be fixed, or otherwise the installation of new equipment is required."

The action of the Government, presents "new receivables to the State."

"Panama bought a system that is being installed whose features so far does not provide the benefits required by the contract," Aguilera said.

"Legally, the Government of the Republic of Panama has structured a team of lawyers to initiate legal action in both Panama and Italy, in response to the situations discovered in the execution of this contract. Separately, this team will monitor and contribute to the processes and investigations that take place in Italy regarding the contract between Panama and Selex / Finmeccanica, besides other legal action that has to place "says the Ministry of Communication.

DIPLOMATIC MOVES

Other decision ARE  to initiate diplomatic efforts, , with the Government of Italy through the Foreign Ministry with the aim that "the country is involved so that the company complies fully with the technical specifications agreed in the contract."

According to the Cabinet, the contract originated with the signing of a Memorandum of Understanding between Panama and Italy  which is shareholder of the Finmeccanica conglomerate.

Chancellor Isabel De Saint Malo de Alvarado  has summoned the Italian Ambassador to formally communicate the position of Panama to Italy  and requesting an immediate response.

The measures taken will not disrupt current operations to ensure the territorial security of the Panamanian state in the fight against drug trafficking and other organized crime activities, said Aguilera.

The 19 radars were acquired during the Martinelli at a cost of $ 125 million

In August 2010 the Cabinet gave the green light to the purchase which  included the supply and  installation of equipment and training of personnel responsible for operating it.

AIR SERVICE
Joel Laniado, The commissioner of the National Air Service (Senan), reported that from April 1 this year Senan assumed the maintenance and administration of personnel operating the radars.

In April, May and June tests were performed with boats of a certain size to determine whether they reflected the technical specifications in the contract.

Asked if Senan had not been involved before April 1, Laniado said, " It is is correct, that Senan was not consulted on the technical specifications of the radar."

In addition to the 19 radars, the Martinelli Government acquired six helicopters and a digital cartographic map creating a total purchase of $ 250 million.

Purchases made directly to Finmeccanica unleashed one of the biggest scandals of the Martinelli reign whose main character apart from the president  is the Italian Valter Lavítola, who intended to charge a fee of $25 million for these contracts to be deposited in accounts in the name of a Panamanian company called Agafea Corp, says La Prensa.

The radar equipment was installed in a range of 72.2 kilometers (39 nautical miles) and up to 457.2 meters. The operations center is based at the old Sherman military base

Days before leaving office, on  June 30,  the ex-Security Minister Jose Raul Mulino informed the media that 8 of the 19 radars had been installed, and 11 remained