Peruvian Investigators Visit Panama To Track Down Ill-Gotten Gains Of Fujimori And Montesinos

by Mike Godfrey, Tax-news.com, New York

19 April 2001

Peruvian investigators have been in Panama recently, trying to hunt down funds believed to have been stashed away in Panama's banking system by Peru's former President, Alberto Fujimori, and its former head of intelligence, Vladimiro Montesinos. The hunt for the ill-gotten gains of the pair moved to the central American country after both Switzerland and the Cayman Islands became embroiled in the saga.

Montesinos became the subject of Swiss investigators at the beginning of year, when the Swiss Banking Commission announced it was to carry out an enquiry into the conduct of five major banks with links to Montesinos, with Swiss banking giant UBS believed to be at the centre of the investigation. Then last month the Cayman Island's Grand Court froze more than US$33m in accounts held by Montesinos and other prominent Peruvians in the jurisdiction.

The Panama News reported this week that three members of a Peruvian congressional investigating committee have turned their attention to Panama, meeting recently with judges, Banking Superintendant Delia Cárdenas, officials from the Public Ministry and members of Panama's Legislative Assembly to enlist their help in tracking down the misappropriated funds. Their aim, once again, is to have any suspect funds frozen by the Panamanian authorities.

Peruvian Congressmen Pedro Morales and Manuel Darment Egoaguirre and Congresswoman Julia Hernández allege that the money belongs to Peru because it was cash spirited away out of the proceeds of privatisations that took place during the Fujimori administration. Mr Morales claims the funds have ended up in Panama, having been placed there via two dubious companies, Treves Intora, which was incorporated in the Bahamas, and W21.

According to reports published in Lima, the $430m which Peru claims is missing was deposited in an account at the Banco Exterior, which has since merged with BBVA, on Fujimori's personal orders. Mr Morales is confident of assistance from Panama in clearing up the matter. He was quoted in the Panama News as saying: 'We're hoping that the truth will soon see the light of day, and we will be able to recover these funds that belong to all Peruvians' adding that he hoped the Panamanian part of the investigation would not be thwarted by bank secrecy.

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