Juan Carlos Varela served as vice president of Panama from 2009 to 2014 and as president from 2014 to 2019. He is the second former Panamanian president to be investigated in connection with the Odebrecht scandal, along with Ricardo Martinelli. He has not been convicted of any crimes. However, the United States barred him from entering the country in 2023 due to “significant corruption,” and Panama’s Supreme Court of Justice is trying him for alleged campaign contributions from the Brazilian construction company. His name also appears in the Pandora Papers and in a leak of private messages known as the Varela-Leaks. The authenticity of that leak has never been independently verified. This report breaks down each allegation according to the strength of the evidence supporting it.
The short answer: Juan Carlos Varela has not been convicted of any crime. The only definitive action taken against him is an administrative sanction. Since July 13, 2023, he has been barred from entering the United States because, according to the State Department, he accepted bribes in exchange for awarding contracts. In Panama, he is being prosecuted in the Odebrecht case before the Supreme Court, with no trial date set as of April 2026. The Pandora Papers link him to offshore companies, but they have not led to any legal proceedings. The Varela-Leaks, on the other hand, are an anonymous leak without independent verification and should not be taken as proven facts. Varela denies any wrongdoing.
Who Is Juan Carlos Varela and Why Does His Case Matter?
Varela became president in 2014 as the Panameñista Party’s candidate, after breaking with Ricardo Martinelli, for whom he had served as vice president and foreign minister. He governed until 2019. During his term, the Odebrecht scandal in Panama and the Panama Papers broke. Since August 2024, he has been a member of the Central American Parliament, a position that grants him special immunity.
His record matters for two reasons. The first is that Panama has never convicted a former president of corruption, and Varela is one of only two who are currently facing charges. The second is that his case involves three very different types of sources: an official sanction by a foreign government, an ongoing judicial proceeding, and an anonymous leak. Confusing these elements is the most common mistake when discussing him. For comparison, Auditoría Abierta is also publishing the case file on José Domingo Arias. He is the candidate whom Varela defeated in 2014 and who is awaiting sentencing in the same Odebrecht case.
The six aspects of the case file, with their level of substantiation
| No. | Point | What is claimed | Who makes the claim and when | Varela’s Response | Level of substantiation |
|---|---|---|---|---|---|
| 1 | Ban on entry into the U.S. | He accepted bribes in exchange for awarding contracts while serving as vice president and president | Department of State, July 13, 2023 | No public response recorded in the sources | Proven as an administrative sanction; not a criminal conviction |
| 2 | Odebrecht Case | Received transfers from companies linked to Odebrecht for the 2009 and 2014 campaigns | Panama Public Prosecutor’s Office; proceedings before the Second Chamber of the Supreme Court | They were legitimate donations, with no “dirty money” | Case pending, no verdict. Documented, but disputed |
| 3 | Pandora Papers | Shareholder of offshore companies registered by Alcogal; allegations regarding the financing of his 2009 campaign | ICIJ, October 2021 | “Transparent” and disclosed company | Substantiated journalistic revelation; no legal proceedings |
| 4 | Varela-Leaks | Messages attributed to his phone containing references to corruption and foreign policy | Anonymous website varelaleaks.com, November 2019 | “Illegal interception, alteration, and leaking” | No verifiable evidence |
| 5 | Lawsuit over the Varela-Leaks | Serious crimes committed by former Attorney General Kenia Porcell and Rolando López | Office of the Attorney General, February 2, 2026 | Excluded due to immunity | Complaint against third parties; Varela is not charged |
| 6 | Complaint by “El Fakir” | He instructed Porcell and López to take action against the Imperio gang | Germán Chanis Aguilar, 2025 | No public response on record | Not admitted by the Court on June 18, 2025 |
Issue 1: The U.S. Entry Ban
On July 13, 2023, then-Secretary of State Antony Blinken announced a ban on Varela’s entry into the United States. The reason was his “involvement in significant corruption,” according to a statement from the U.S. Embassy in Panama. It reads: “During his tenure as vice president and, later, as president of Panama, Varela accepted bribes in exchange for improperly awarding government contracts.”
The measure was announced on the same day as an identical sanction against Ricardo Martinelli. Washington framed these actions as part of its commitment to combat “endemic corruption” in Panama, according to Voice of America. It is important to read this carefully. It is an administrative decision by a foreign government, adopted under Section 7031(c) of its budget law. It is not a criminal conviction nor does it require the evidence of a trial. But it is a fact established by its official source, and it has not been reversed.
Front 2: The Odebrecht Case Before the Supreme Court
What Is Being Investigated
Varela is named in the investigation for alleged transfers received from shell companies linked to Odebrecht while he was vice president, according to La Prensa. One of his campaign fundraisers, Dr. Jaime Lasso, admitted in court to having received $6 million for the Panameñismo presidential campaign. According to La Prensa, the money allegedly reached the party through the Don James Foundation and the companies V-Tech and Poseidon Enterprises. Both are linked to Lasso.
Varela maintains that these funds were legitimate “donations” for the Panameñista Party’s 2009 and 2014 campaigns. He denies that there was any “injection of dirty money” or triangulation. The money is documented; its legal status is what is being disputed.
Why Is the Supreme Court Trying Him?
As a member of Parlacen, Varela is not being tried in the ordinary proceedings that brought 23 defendants before Judge Baloisa Marquínez. His case falls under the jurisdiction of the Second Chamber of the Supreme Court of Justice, according to La Estrella de Panamá. There, his case is consolidated with those of brothers Luis Enrique and Ricardo Alberto Martinelli Linares and former minister Jaime Ford. The Court decided to combine the four cases into a single docket.
As of April 2026, that proceeding was still in the evidence-admissibility phase, with no trial date set, according to La Prensa. This is the main difference from the ordinary trial, whose closing arguments concluded in February 2026. Varela remains a defendant awaiting trial.
Front 3: The Pandora Papers
In October 2021, the International Consortium of Investigative Journalists (ICIJ) published the Pandora Papers. It revealed that the Panamanian law firm Alcogal registered two companies in the British Virgin Islands in 2000 and 2001. They were owned by Varela, his brother, his father, and other partners. According to the ICIJ, three months after Varela took office as president, Alcogal conducted an internal review. That review addressed media allegations that his campaign had been financed with money from illegal online gambling. Varela’s team denied the allegations, and the law firm concluded that no further investigation was necessary.
Varela responded to the ICIJ that the donations were made in accordance with the law and were reported to the electoral authorities. In a statement, he confirmed that he is a shareholder of VHS Capital, a company he described as “transparent” and which, he said, appears in his financial disclosure statements, according to Telemetro. The Panameñista Party labeled the leaked documents “illegal,” according to TVN. There is no record of any judicial investigation stemming from these revelations. It is a proven fact as a journalistic revelation, with no criminal consequences.
Front 4: The Varela-Leaks, an Unverified Leak
This front requires a different caveat. It is neither a legal accusation nor an official sanction. It is a leak of content attributed to Varela’s phone, published in November 2019 on a website called varelaleaks.com, which was registered anonymously. The most frequently cited report is a story from the Cuban state news agency Prensa Latina, republished by Aporrea. According to that report, the messages suggested Varela had ties to the Lima Group and had taken steps to favor companies with government contracts. They also suggested maneuvers to conceal the whistleblowing in the Odebrecht case.
No available source independently confirms the authenticity of the content. Nor is there an official investigation that has verified these allegations. Varela attributed the publication to an “illegal interception, alteration, and leak” of his communications, according to La Prensa. For this reason, this file classifies the claim as having no verifiable basis. Former Attorney General Kenia Porcell resigned in November 2019 amid the scandal, according to CNN en Español. However, that resignation does not validate the leaked content.
Appendix: Allegations and Complaints Without Charges
The 2026 complaint regarding the Varela-Leaks
On February 2, 2026, the Attorney General’s Office accepted a complaint regarding the events revealed in the Varela-Leaks, according to La Estrella de Panamá. The defendants are former Attorney General Kenia Porcell and former Security Council chief Rolando López. Varela was excluded due to his immunity as a member of Parlacen. The Attorney General’s Office left open the possibility of referring evidence to the Supreme Court. As of October 7, 2026, no charges have been filed against Varela in connection with these events.
The Indictment of the Leader of the Imperio Gang
Germán Eliecer Chanis Aguilar, alias “El Fakir,” is identified as the leader of the Imperio gang and was extradited from Mexico in May 2024. He filed a complaint against Varela with the Supreme Court. He accused him of having instructed Porcell and Rolando López to interfere in the operation against his organization. On June 18, 2025, the Court dismissed the complaint and referred the case file to the Public Prosecutor’s Office, according to La Prensa. It noted that the case could return to the Court if evidence against the former president were to emerge. No charges have been filed.
So, what has been proven in the case against Juan Carlos Varela?
- Proven as an administrative sanction: The United States barred him from entering the country on July 13, 2023, for accepting bribes, according to the State Department. This is not a criminal conviction.
- Proven as a fact: His campaign finance manager, Jaime Lasso, acknowledged receiving $6 million for the Panameñista campaign, and the ICIJ documented his offshore companies. The legal nature of these facts is in dispute.
- Pending, no ruling: the Odebrecht case before the Second Chamber of the Supreme Court, in the evidence-admissibility phase as of April 2026.
- No verifiable evidence: the Varela-Leaks. An anonymous leak with no independent verification.
- Lawsuits against third parties: the February 2026 lawsuit regarding the Varela-Leaks does not include him; the “El Fakir” lawsuit was not admitted.
- Convictions: none.
Frequently Asked Questions (FAQ)
Has Juan Carlos Varela been convicted of any crime?
No. No court has handed down a sentence against him. He is on trial for the Odebrecht case before the Supreme Court of Panama, with no trial date set as of April 2026. The only definitive measure against him is the ban on entering the United States issued in July 2023.
Why did the United States sanction Juan Carlos Varela?
For “significant corruption.” The State Department stated on July 13, 2023, that, as vice president and president, Varela “accepted bribes in exchange for improperly awarding government contracts.” This is an administrative sanction that bars him from entering the United States. It is not a criminal conviction.
Why is Varela being tried by the Supreme Court rather than an ordinary court?
Because he has been a member of the Central American Parliament since August 2024, and that position grants him immunity. The Second Chamber of the Supreme Court is hearing his Odebrecht case alongside those of Jaime Ford and the Martinelli Linares brothers. The ordinary trial, involving 23 defendants, concluded its closing arguments in February 2026 before Judge Baloisa Marquínez.
How much money from Odebrecht did Varela’s campaign receive?
His campaign finance manager, Jaime Lasso, acknowledged in court that US$6 million went to the Panameñista presidential campaign, according to La Prensa. The funds reportedly came through the Don James Foundation and the companies V-Tech and Poseidon Enterprises. Varela maintains that they were legitimate donations from the 2009 and 2014 campaigns.
What are the Varela-Leaks?
A leak of messages attributed to Varela’s phone, published in November 2019 on an anonymous website. They suggested links to the Lima Group and efforts on behalf of companies with government contracts. No independent source has verified their authenticity. Varela claims they were illegally intercepted and altered. They should not be taken as proven facts.
What do the Pandora Papers say about Varela?
That the law firm Alcogal registered two companies in the British Virgin Islands in 2000 and 2001, according to the ICIJ in October 2021. They were owned by Varela, his brother, his father, and other partners. Varela confirmed that he is a shareholder of VHS Capital and said that this is listed in his financial disclosure statements. There was no judicial investigation.
Was Varela accused in connection with the Imperio gang case?
Yes, but the Supreme Court did not accept the complaint. Germán Chanis Aguilar, alias “El Fakir,” accused him of having instructed Kenia Porcell and Rolando López to act against his organization. On June 18, 2025, the Court referred the case file to the Public Prosecutor’s Office. No charges have been filed against Varela.
Are Varela and Martinelli in the same legal situation?
No. Martinelli was convicted in Panama in 2023 of money laundering in the New Business case and is living in exile in Colombia. Varela has no convictions. What they have in common is the Odebrecht case and the ban on entering the United States, which was announced for both of them on the same day in July 2023.
Sources consulted
- U.S. Embassy in Panama: Designation of former Panamanian President Juan Carlos Varela Rodríguez for significant corruption (July 13, 2023)
- Voice of America: U.S. Sanctions Former Panamanian President Varela for Significant Corruption (July 2023)
- La Prensa: Why Is Juan Carlos Varela Linked to the Odebrecht Case? (2023)
- La Prensa: The Odebrecht case enters its third week of preliminary hearings
- La Estrella de Panamá: Parallel Justice: The Supreme Court of Justice Rules on Motions to Try Parlacen Members (2026)
- La Prensa: The second trial over Odebrecht bribes is in the evidence admission phase (April 2026)
- Aporrea, via Prensa Latina: Varela’s corruption and conspiracy to stage a coup in Venezuela revealed (November 2019)
- ICIJ: When Latin America’s elite wanted to hide their wealth, they turned to this Panama firm (October 2021)
- Telemetro: Former President Varela Speaks Out Following the Pandora Papers Revelations (October 2021)
- TVN: The Local Context of the Pandora Papers (October 2021)
- La Estrella de Panamá: Varela Leaks: The Prosecutor’s Office Accepts the Complaint, Identifies Serious Crimes, and Leaves an Investigation into the Former President Pending (February 2, 2026)
- CNN en Español: Panama’s Attorney General Resigns Amid the Varela Leaks Scandal (November 13, 2019)
- La Prensa: Varela Speaks Out About the Illegal Leak of His Communications (November 2019)
- La Prensa: Court Rejects El Fakir’s Complaint Against Former President Varela and Sends Case File to the Public Prosecutor’s Office (June 18, 2025)
This article compiles documented facts and allegations attributed to their authors. The mention of an allegation does not imply its veracity, and the responses of the person mentioned are included in each case. Auditoría Abierta offers Juan Carlos Varela the opportunity to respond and will update the article with any new developments. Information verified as of October 7, 2026.
Investigative Journalist and Political Analyst
Eri Miranda Loya is an investigative journalist specializing in public affairs coverage, power structure analysis, and institutional oversight in Latin America. His journalistic work stands out for the intensive use of transparency techniques, freedom of information access, and documentary cross-referencing, aimed at untangling the regulatory and financial webs of the political class.
At Auditoría Abierta, he is part of the investigative team focused on accurately documenting cases of opacity, legislative controversies, and accountability. His approach prioritizes informational sobriety, respect for due process, and the rigorous use of primary sources to provide citizens with bias-free journalism grounded in verifiable facts.