On Tuesday, Panamanian President Juan Carlos Varela publicly asked for answers from Alejandro Moncada Luna, a former chief justice of the Supreme Court, after a local newspaper reported that he bought millions of dollars worth of property in cash.

Earlier that day, La Prensa, a newspaper based in Nicaragua, reported that Moncada Luna, who served as chief justice from 2012-2013, owns Corporacion Alpil S.A., EFE reports. The company reportedly bought a "$1.17 million apartment in a luxury condominium at Coco del Mar," a sought after neighborhood located in the capital of Panama, in August with cash.

The newspaper also said that Moncada, who joined the Supreme Court when former Panamanian President Ricardo Martinelli appointed him in 2010, also bought "an apartment on the 26th floor" of a residential tower named Ocean Sky. The condo is close to the condominium and was reportedly purchased in 2011 "through another business" listed as Corporacion Celestial.

"[He paid for the apartment with] $400,000 in cash," the newspaper said. "The remainder of the purchase price, which was over $500,000, was covered by a loan from the Banco Nacional. The debt was soon paid off by the couple and today the Moncada Lunas live in that apartment."

According to the newspaper, Moncada Luna and his wife, Maria del Pilar Fernandez, who worked in the first lady's office, "would never be able to pay the price of those assets" with their salaries.

During a public event on Tuesday, President Carlos Varela said similar complaints have been coming in about the judge for at least "two years."

"I believe it's up to him to explain," he said. "One can't help but notice the cash he pays for properties like these."

Former President Martinelli defended Moncada Luda, calling the stories "trial by media" encouraged by the administration and encouraged people to wait until Moncada Luna speaks out before passing judgment.

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Follow Scharon Harding on Twitter: @ScharHar.

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