Panama corruption investigations escalate

Subject

Anti-corruption investigations.

Significance

On June 8, Panama's Supreme Court announced that it was opening another investigation into former President Ricardo Martinelli (2009-14), to probe allegations of spying during his presidency. This is the second investigation the court has opened against Martinelli this year, indicating that the anti-corruption crackdown led by incumbent President Juan Carlos Varela is gathering pace.

Impacts

• The focus on tackling corruption may distract attention from some of Varela's other electoral pledges, such as infrastructure development.
• In the longer term, cleaning up Panama's reputation may reap benefits in terms of investment potential and fiscal transparency.
• Antagonism between Martinelli's CD party and the ruling coalition could lead to legislative blockages in the medium term.