An impending “disaster” and “failure” is what top Panamanian officials labelled the country’s ambitious canal expansion project, leaked US embassy cables suggest.



Allegations of possible nepotism in the controversial tender process were also aired by Panama’s vice-president who questioned the financial validity of the winning bid, the latest revelations from WikiLeaks show.

Juan Carlos Varela.

Cables sent from the US embassy in Panama City and labelled “sensitive” and “confidential” detail a meeting between the US ambassador and Juan Carlos Varela in December 2007.