Panamanian Politicians being criticized, Latin America is pulling out of recession, the top schools in Panama
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Dear Panama E-Letter Subscribers:
Panamanian Politicians being criticized, Latin America is pulling out of recession, the top schools in PanamaBy Matt Atlee
Vallarino is not only in trouble with Juan Carlos Navarro; he is also facing a corruption investigation led by the anti-corruption prosecutor over the issuing of a $4,000 municipal check to his wife – which was never cashed. Vallarino failed to show up for a second time to a preliminary hearing on the corruption charge. The new Mayor has not responded directly to the charge of corruption. People are beginning to wonder if the new Mayor will make it to 2014 when his term as Mayor expires. Panamanian President Ricardo Martinelli announced that he will make changes to his cabinet at the beginning of next year. Martinelli also announced that his government will create two new ministries: Ministry of Interior and the Ministry of Security; both ministries will help carry out functions that are currently the responsibility of the Ministry of Government and Justice. Martinelli was criticized this past week by Secretary General of the Partido Democrático Revolucionario (PRD) Mitchell Doens, for unilaterally pulling Panama out of the Central American Parliament (PARLACEN). In a 39 to 14 vote the Panamanian National Assembly approved the removal of Panama from PARLACEN. Martinelli’s argument for pulling the country out of PARLACEN is that the organization is expensive and it has never fulfilled its purpose of integrating the region economically and politically. What PARLACEN did offer to Panama’s politicians was immunity from prosecution; former presidents Mireya Moscoso(1999-2004) and Martin Torrijos(2004-2009) signed on as members of PARLACEN so that they could avoid being prosecuted in Panama for crimes they may have committed while in office: membership in PARLACEN means complete immunity from prosecution. Now that Panama plans to exit PARLACEN by November 2010, politicians like Torrijos and Moscoso could be prosecuted for crimes they committed while in power. The PRD leadership is arguing that the removal of Panama from PARLACEN is just clearing the way for the illegitimate prosecution of Martin Torrijos. Another former PRD president Ernesto Pérez Balladares(1994-1999) is facing a huge investigation into his company Shelf Holding Inc. which received payments from a number of gambling companies such as, Lucky Games Ltd. and Kestel Management Inc. among other, while he was President of Panama. For the huge payoffs the companies were given rights to set up gambling operations in Panama. Balladares is no longer in Panama and it looks as though he may never return to the country, unless a PRD government is elected in 2014. The investigation of former President Balladares and the coming investigation of former President Martin Torrijos are meant, I believe, to drive a stake into the heart of the PRD leadership. Balladares represents the money wing of the PRD and Torrijos represents the legacy of the party through his father: if both are wrapped in corruption what will the PRD run on during the next presidential election in 2014? It looks as though Latin America is pulling out of recession and is headed towards growth in 2010. The region is expected to grow by 4% according to Roberto Sifon Arévalo, Latin America Director of the Standard & Poor’s rating agency. According to Arévalo, Latin America has been able to attract enough foreign investment so that its capital markets have become very attractive to outside investors. And with more outside investors, financial institutions in the region have improved and are attracting even more capital. The countries that are expected to grow most rapidly in Latin America next year are Peru, Panama, Brazil and Chile. Peru, Chile and Brazil have seen their trade in commodities with China grow rapidly since 2004. Look for the Chinese to expand investment in all three countries over the next few years. The Panamanian government continues to be interested in developing a copper mine at Cerro Colorado in Chiriqui province. A number of international mining companies are interested in developing a mine at Cerro Colorado which is located on land inside one of Panama’s indigenous reservations. Some will argue that the mine will help develop the region around the mine – which is very, very poor – but this is almost never the case. I lived for two years above the small town of Cañazas, Veraguas where there was a large gold mine operated by a Canadian company called Greenstone and the American company Brown & Root. The mine did not develop the surrounding countryside; in fact, it stripped the countryside, destroyed the rivers in the region and led to all kinds of sociological and environmental disasters. I never saw the mine invest anything in the small, poor town of Cañazas, other than a small roof off the side of the local church and some tree plantations. Local elites did get paid very well for the land they sold to the mining company but the average rural farmer was hurt more than helped by the mine. Colombia is beginning to play a big part in supplying Panama with energy. Colombian coal will generate electricity at a converted power generation plant at Bahía Las Minas located in the province of Colón. The plant will be operated by a Franco-Belgian company Suez Energy. The company has invested $150 million to convert the plant to coal which they expect will burn 1,000 tons of Colombian coal per day. Panama and Colombia also plan to spend $400 million to connect the two countries electricity grids so that Panama can gain access to Colombia’s rich energy reserves. According to Paulo Hernan Corredor, XM manager, an affiliate of the Electric Interconnection Colombia SA (ISA), Panama’s ongoing energy needs must be defined in some sort of agreement between the two countries. Panamanian businessmen have discovered that Colombia is a good place to do business. According to the Colombian Ministry of Commerce, Industry and Tourism, Panamanians have invested $182.9 million in Colombia in the first half of this year, making Panama the fifth largest investor in Colombia. The Panama railroad experienced a 30% drop in cargo shipments across its rails from November 2008 to June 2009. In response the railroad gave many railroad workers pink slips, though rehiring has begun. Saza coffee company of Japan plans to buy Panama’s Esmeralda Especial coffee beans, which are reported to be the most expensive coffee beans in the world: $117.50 per pound. Panama plans to sign “double taxation” treaties with a number of countries including France and Mexico. This is in response to pressure from the Organization for Economic Cooperation and Development which has put Panama on the “gray list” of countries that are tax havens. The top schools in Panama were recently ranked here are the top positions: •International School of Panama •Academia Interamericana de Panama •Saint Mary’s School of Panama Written By Matt Atlee Panama 101 – E-Book – $69
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In my column two weeks ago, I was very critical of the poor performance of Panama City’s new Mayor, Bosco Vallarino. Then in last week’s column, I wrote that the new Mayor should be given a chance to prove himself before everyone heaps criticism on him. In this week’s column, I’ve decided to be neither sympathetic nor critical of the new Mayor, rather I’ve decided that I wouldn’t want to be the new Mayor. Why? Because the new Mayor of Panama City has had 15% of his salary sequestered by the courts in Panama. Juan Carlos Navarro, the Mayor before Vallarino, sued Vallarino for slander after Vallarino accused Navarro of being a “narco-Mayor” on a television program in March 2009. Navarro will receive $121,030 from Vallarino´s salary as compensation for slander. Navarro has a number of other suits pending in the courts against Vallarino.