Panama’s Supreme Court has voted to go ahead with their investigation of former President Ricardo Martinelli over allegations of corruption.

On Wednesday the court announced it will appoint a special prosecutor in order to investigate the claims Martinelli inflated multimillion dollar contracts from 2009 to 2014 during the time of his administration, BBC reports.

The former president denies all of the allegations.

The Supreme Court made their decision after Giacomo Tamburelli, a former government official, accused Martinelli of pressuring him to sign "anomalous" contracts worth $45 million. Tamburelli, a man who ran a Panamanian social program, is also under investigation for alleged corruption.

The investigative probe will focus on the accusations that the government paid overly-inflated prices for the dried food it then handed out to students as part of its social program.

Martinelli, aside from being a former president, is a supermarket tycoon. He stated the allegations are part of a political vendetta hurled against him by the current President Panamian President Juan Carlos Varela.

During his run for the presidency, Varela, who was at one time a former Martinelli ally, became Martinelli's bitter rival. Varela campaigned with the promise to clean up politics in Panama.

Although the president has accused Martinelli of taking kickbacks in the past, this is the first time that Martinelli actually faces a formal investigation.

On Wednesday, Martinelli traveled to Guatemala in order to attend a session of the Central American parliament, a regional political body which has its headquarters in Guatemala City.

The former leader has left it up to speculation as to whether or not he will even return to Panama.

"I will make that decision in the future, but I am not going to go for a trial arranged by Mr Varela," he said.

Related