Juan Carlos Varela was Vice President of Panama between 2009 and 2014 and President between 2014 and 2019. Together with Ricardo Martinelli, he is one of the two former Panamanian presidents reached by the Odebrecht scandal. However, his case file has an asymmetry that this piece walks through. The US State Department barred him from entering the country in July 2023 for «significant corruption» and stated that he accepted bribes. In Panama, by contrast, his Odebrecht proceedings sit on a special track at the Supreme Court and, as of April 2026, had no trial date. This piece follows the case from that border between what a foreign government decided and what his own justice system has not resolved. The analysis by fronts is in Varela’s case file at Auditoría Abierta.
The short answer. Juan Carlos Varela is sanctioned abroad and untried at home. On 13 July 2023, the United States barred him from entering the country for «significant corruption» and stated that he accepted bribes to award contracts. That decision is administrative, not a conviction. In Panama, the Second Chamber of the Supreme Court is investigating him over Odebrecht transfers to his 2009 and 2014 campaigns. However, the proceedings were still at the evidence-admission stage in April 2026. Varela maintains they were legal donations. He has no conviction in any country.
Who Juan Carlos Varela is and why his case matters in October 2026
First, Varela reached the presidency in 2014 after breaking with Ricardo Martinelli, under whom he had served as vice president. He governed during the explosion of the Odebrecht case and the Panama Papers. Today he is a member of the Central American Parliament, which gives him immunity.
His case matters for this series because it shows the most indirect route of cross-border justice. There is no extradition or foreign conviction, as in the cases of Carlos Pólit or Manuel Baldizón. There is a diplomatic sanction that asserts facts Panamanian justice has not tried. Bajo Lupa walks through the timeline in its Varela case file.
Timeline of the Varela case, decision by decision
| Date | Body | Decision | Evidence level |
|---|---|---|---|
| 2000-2001 | Alcogal law firm | Registers in the British Virgin Islands two companies of Varela, his brother and his father | Documented (ICIJ) |
| 2009 and 2014 | Panameñista Party campaigns | Receive funds that prosecutors link to Odebrecht via the Don James foundation and the companies V-Tech and Poseidon Enterprises | Under investigation |
| November 2019 | Anonymous site varelaleaks.com | Publishes content attributed to his phone; attorney general Kenia Porcell resigns | No independent verification |
| October 2021 | ICIJ, Pandora Papers | Reveals the Alcogal companies and an internal review about his 2009 campaign | Journalistic revelation |
| 13 July 2023 | US State Department | Entry ban for significant corruption, the same day as Martinelli | Administrative sanction |
| 2024-2026 | Second Chamber of the Supreme Court | Parallel Odebrecht proceedings with the Martinelli Linares brothers and Jaime Ford | At evidence admission |
| 18 June 2025 | Supreme Court | Does not admit the complaint by alias «El Fakir» and refers it to the Public Prosecutor’s Office | No charge |
| 2 February 2026 | Attorney General’s Office | Admits a complaint over the Varela-Leaks against Kenia Porcell and Rolando López; excludes Varela because of immunity | No charge |
| April 2026 | Second Chamber of the Supreme Court | Still at the evidence-admission stage, no trial date | No verdict |
2023: the United States sanction and what it asserts
On 13 July 2023, Secretary of State Antony Blinken announced Varela’s ban from entering the United States, according to the statement from the Embassy in Panama. The reason: his «involvement in significant corruption». The text is explicit: «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 the same day as an identical one against Martinelli, according to Voz de América. Washington framed it within its commitment to fighting «endemic corruption» in Panama.
However, its scope should be read carefully. It is an administrative sanction by a foreign government under section 7031(c). It is not a criminal conviction, requires no trial and nobody has reversed it. It asserts facts that no Panamanian court has declared proven. It is, to date, the most forceful pronouncement by any State on Varela.
Odebrecht in Panama: the proceedings that never reach trial
In Panama, Varela appears in the investigation into transfers received from Odebrecht-linked shell companies while he was vice president, according to La Prensa. The money allegedly reached the Panameñista Party through the Don James foundation and the companies V-Tech and Poseidon Enterprises. His campaign fundraiser, the physician Jaime Lasso, acknowledged before the courts having collected US$6 million for the party’s presidential campaign. Varela maintains that those funds were legitimate «donations» for the 2009 and 2014 campaigns and denies any «introduction of dirty money».
Moreover, here the file’s second asymmetry appears. As a Parlacen member, Varela was left out of the ordinary proceedings that concluded in February 2026 with Martinelli and his former ministers. He is tried by the Second Chamber of the Supreme Court, together with the Martinelli Linares brothers and former minister Jaime Ford, according to La Estrella de Panamá. According to La Prensa, as of April 2026 those parallel proceedings were still at the evidence-admission stage, with no trial date. To see how the ordinary proceedings progressed, Bajo Lupa Digital publishes the money trail of José Domingo Arias, the candidate Varela defeated in 2014.
2021: the Pandora Papers and the Alcogal companies
In October 2021, the International Consortium of Investigative Journalists revealed two companies of Varela, his brother, his father and other partners. The Alcogal law firm registered them in the British Virgin Islands in 2000 and 2001. According to the ICIJ, three months after Varela took office as president, an internal Alcogal review recorded press allegations about his campaign. They said it had been financed in part with laundered money from illegal online betting. Varela’s team denied it and the firm concluded that no further investigation was needed.
For his part, Varela confirmed being a shareholder of VHS Capital, a company he described as «transparent» and which, he said, appears in his asset declarations, according to Telemetro. The Panameñista Party described the leaked documents as «illegal», according to TVN. No judicial investigation arising from these revelations is on record.
The Varela-Leaks: an unverified leak
This front demands a different warning. In November 2019, an anonymously registered site, varelaleaks.com, published content attributed to Varela’s phone. According to Prensa Latina coverage reproduced by Aporrea, it suggested efforts to favour companies with state contracts and manoeuvres over the Odebrecht plea statements. No source independently confirms the material’s authenticity. Varela attributed the leak to an «illegal interception, alteration and leaking» of his communications, according to La Prensa. Attorney general Kenia Porcell resigned that month, according to CNN.
The matter returned in 2026 by the reverse route. On 2 February, the Attorney General’s Office admitted a complaint against Porcell and the former head of the Security Council, Rolando López, over the facts revealed, according to La Estrella de Panamá. Varela was excluded because of his immunity as a Parlacen member. Prosecutors left open the possibility of referring evidence to the Supreme Court.
The complaint by «El Fakir»: not admitted
Separately, Germán Eliecer Chanis Aguilar, alias «El Fakir», alleged leader of the Imperio gang and extradited from Mexico in May 2024, filed a complaint against Varela before the Supreme Court. He claimed that Varela instructed Porcell and López to intervene in the operation against his organisation. On 18 June 2025, the Court did not admit the complaint and referred the file to the Public Prosecutor’s Office, according to La Prensa. It warned that it could return to the Court if evidence emerged. There is no charge.
What Varela says and what his accusers say
In short, Varela maintains that the Odebrecht funds were donations in accordance with the law and reported to the electoral authorities. He denies triangulation and dirty money. On the Varela-Leaks, he speaks of an illegal interception. On the offshore companies, he defends their transparency. The US State Department states that he accepted bribes. Panamanian prosecutors link him to the Odebrecht transfers. His former fundraiser Jaime Lasso admitted the US$6 million.
How to read this case file
Three keys. First: the United States sanction is firm and explicit, but it is not a conviction. It asserts facts without a trial. Second: the Panamanian proceedings exist, but they sit on a special track because of his immunity and have no date. Seven years after the case exploded, there is no verdict. Third: the Varela-Leaks are an anonymous, unverified leak and must be read as such. To compare with a former Panamanian president who was tried on the ordinary track, Auditoría Abierta publishes the case file of Ricardo Martinelli in its list of former presidents.
Frequently asked questions (FAQ)
Why did the United States sanction Juan Carlos Varela?
For his «involvement in significant corruption», as Secretary of State Antony Blinken announced on 13 July 2023. The statement says that, as vice president and president, he «accepted bribes in exchange for improperly awarding government contracts». The measure bars him from entering the United States.
Is the United States sanction a conviction?
No. It is an administrative sanction by a foreign government under section 7031(c). It requires no trial or verdict. It is a finding confirmed by its official source, but it does not amount to a criminal conviction.
Is Varela being prosecuted over Odebrecht?
Yes, before the Second Chamber of Panama’s Supreme Court, because of his immunity as a Parlacen member. He is under investigation over transfers from Odebrecht-linked companies to the 2009 and 2014 campaigns. As of April 2026 the proceedings were at the evidence-admission stage, with no trial date.
How much money did Varela’s campaigns receive from Odebrecht?
His fundraiser, the physician Jaime Lasso, acknowledged having collected US$6 million for the Panameñista presidential campaign. According to La Prensa, the money allegedly arrived through the Don James foundation and the companies V-Tech and Poseidon Enterprises. Varela says they were legal donations.
What are the Varela-Leaks?
A leak published in November 2019 on an anonymous site, attributed to Varela’s phone. No source has independently verified its authenticity. Varela described it as an illegal interception. In 2026 prosecutors admitted a complaint over those facts against former attorney general Kenia Porcell, but excluded Varela because of his immunity.
What appears about Varela in the Pandora Papers?
That he is a shareholder of offshore companies registered by the Alcogal law firm in 2000 and 2001 in the British Virgin Islands. An internal review by the firm recorded allegations about the financing of his 2009 campaign. Varela defended the transparency of VHS Capital. There are no judicial proceedings.
Why was Varela not tried with Martinelli?
Because as a member of the Central American Parliament he has immunity and his case belongs to the Second Chamber of the Supreme Court. Martinelli and his former ministers were tried on the ordinary track, whose trial concluded on 27 February 2026.
Does Varela have any conviction?
No. He has no conviction in Panama or in any other country. The United States sanction is administrative and the Panamanian Odebrecht proceedings have no verdict.
Sources consulted
- US Embassy in Panama: Designación de Varela por corrupción significativa (13 July 2023)
- Voz de América: EE. UU. sanciona a Varela por corrupción significativa (2023)
- La Prensa Panamá: ¿Por qué está asociado Varela a la causa Odebrecht? (2023)
- La Prensa Panamá: El caso Odebrecht entra en su tercera semana de audiencia preliminar
- La Estrella de Panamá: Justicia paralela, CSJ resuelve incidentes para juzgar a miembros del Parlacen (2026)
- La Prensa Panamá: El segundo juicio por las coimas de Odebrecht está en fase de admisión de pruebas (April 2026)
- Aporrea (via Prensa Latina): Revelan corrupción de Varela y conspiración para golpe en Venezuela (2019)
- ICIJ: When Latin America’s elite wanted to hide their wealth, they turned to this Panama firm (2021)
- Telemetro: Expresidente Varela se pronuncia tras las revelaciones de los Pandora Papers (2021)
- TVN: El escenario local de los Pandora Papers (2021)
- La Estrella de Panamá: Varela Leaks, la Fiscalía admite querella (2 February 2026)
- CNN Español: Renuncia la procuradora de Panamá en medio del escándalo por los Varela Leaks (2019)
- La Prensa Panamá: Varela habla de filtración ilegal de sus comunicaciones (2019)
- La Prensa Panamá: Corte no admite denuncia de El Fakir contra expresidente Varela (18 June 2025)
This piece records documented facts and allegations attributed to their authors. The mention of an allegation does not imply its truth, and the position of the person named is recorded in each case. Bajo Lupa Digital offers Juan Carlos Varela space to respond and will update the text with every development. Information verified as of 8 October 2026.
Investigative Journalist and Case File Analyst
Abati Preciado Ruelas is an investigative journalist specializing in the scrutiny of judicial proceedings, the coverage of regulatory frameworks, and the analysis of the administration of justice in Latin America. His career is distinguished by a firm commitment to institutional oversight, examining legal case files, court rulings, and public records to accurately document the exercise of power.
At Bajo Lupa Digital, he is part of the investigative team tasked with untangling legal controversies and high-impact political cases. His journalistic approach prioritizes analytical sobriety, rigorous respect for due process, and the exhaustive cross-referencing of primary sources, providing citizens with a documented perspective free from partisan biases.