Dear Panama E-Letter Subscribers:
Panama Canal Expansion On Track
By Matt Atlee
 The building of a third set of locks on the Panama Canal will begin next year according to Antonio Zaffaroni, the director of Grupo Unidos por El Canal, the consortium that won the contract to build the new set of locks. Zaffaroni explained that the construction work will pass through four stages: during the first stage Grupo Unidos will be obtaining the necessary permits and approvals; during the second stage, the company will be clearing land; and during the third stage, they will be building facilities to produce concrete, crushed stone, and cement; during the final stage, they will build the new locks. The whole process should take about five years. The hope is to have the new locks completed for the 100th anniversary of the opening of the Panama Canal. The new locks will cost $3.1 billion to build.
The Panamanian Ministry of Economy and Finance is at it again: the Ministry has seized Groupo F. International S.A. property on Amador Causeway because the company has not paid its taxes or rent to the government. The centerpiece of the property is the Figali Convention Center, which was built for the 2003 Miss Universe contest. There was a huge rush to build the convention center in 2003, but since then building on the property, other than a failed marina, has been more or less stagnant; in fact, the convention center is beginning to fall apart. Groupo F is standing on some very valuable property so it will be interesting to see if the government decides to put the property up for sale.
The investigation into former Minister of Government and Justice, Daniel Delgado Diamante, will be sent to the Second Superior Tribunal of Justice. The prosecutor in the case wants Diamante charged with murder in the death of Corporal Andres Garcia. It’s alleged that as a young officer in the Panamanian military Diamante killed Garcia in front of his home in the Panama Viejo district of Panama City after a confrontation at military headquarters. At the time of the killing Diamante was sent to barracks, but was never charged with murder under the military governments.
Panama City was hit by torrential rains this past week, especially the San Francisco district of the city. The Hotel Sheraton had its pool, tennis courts and outside restaurant area flooded, as well as some of its administrative offices and tourist shops. The rivers that run through San Francisco flooded and car and homes were inundated with water; photos in local newspapers showed cars completely covered over by flood waters. San Francisco, originally a quiet neighborhood of single one-storey homes, has experienced intense construction in apartment towers since the Panamanian real estate boom began in 2003.
It looks as though a trade agreement between Panama and the U.S. will not occur anytime soon as the Obama administration is working its way through a heavy legislative agenda in Washington. Legislation like healthcare, alternative energy and financial reform are dominating relations between the White House and the U.S. Congress. And with unemployment rising in the U.S., any trade agreement might be interpreted by a skeptical U.S. public as a job exporter rather than a job creator. You probably won’t see a U.S.-Panamanian trade agreement until Obama’s second term – if he gets one.
A Pennsylvania woman who was acquitted of murder in Panama has returned home to Pennsylvania. Debra Ann Ridgley lived in an apartment owned by New York socialite, Toni Grossi-Abrams, in 2007 when Abrams dismembered and burned body was found in a soccer field in one of Panama City’s poorest districts. Ridgley said that Abrams was fine when she left her with a Colombian man, Didier Osorio Garcia, who also stayed in the apartment. However, when she returned to the apartment hours later, Ridgley found Garcia, another Colombian man and the dead body of Grossi-Abrams. The three then tried to burn the body of Grossi-Abrams with lighter fluid after taking a cab to a soccer field in Panama City. The prosecutor in the case argued that Ridgley had had a history of fighting with Grossi-Abrams and that during one such fight she pulled a knife on Grossi-Abrams and killed her. The prosecutor argued that after killing Grossi-Abrams, Ridgley called the two Colombians to help her dispose of the body. Didier Osorio Garcia, who is now in custody in Colombia, has confessed to the murder and cleared Ridgley of any involvement.
Construction on Panama’s new metro system is set to begin in July 2010 according to Robert Roy, Executive Secretary of the new metro. An Evaluation Commission, led by well-known Panamanian architect Ignacio Mallol is in the process of choosing a metro logo that will be made public in December.
Rock band Metallica will play in Panama in March of 2010. The band is making a short tour of Central and South America. They will play in Costa Rica, Panama, Colombia and Peru. The last big rock band to play in the region was Iron Maiden who played in Costa Rica and Colombia, but not Panama.
The new mayor of Panama City, Bosco Vallarino, has decided to change this year’s Christmas celebrations by replacing the famous Christmas parade with a Christmas village. The Christmas village will be built along the Cinta Costera (Coastal Highway) and will consist of a Christmas light show and village as well as a Christmas car ride. Some argue that replacing the Christmas parade with a Christmas village is not a good decision for residents of Panama City. The Christmas parade has been a city favorite the last 16 or 17 years; the parade began after the military government fell in December 1989.
Mayor Vallarino has not yet announced where the 2010 Carnival will take place. The last few years Carnival celebrations have taken place on the Transístmica Highway; before that, they took place on Via España. I have a feeling there will be no Carnival celebrations in Panama City this year, but let’s wait and see what the new mayor has planned.
This month the Panamanian government plans to set the new minimum wage in Panama. Currently, the minimum wage is $265 a month. Most people are paid more than the minimum wage in Panama, but the government would like to increase the minimum wage for public servants who are paid the minimum wage. There should be a nice increase as the new government wants to increase its popularity with the lower classes as a way of building popular support for its social policies.
President Martinelli announced last week that he plans to shake up his cabinet. Martinelli is looking to replace some of his cabinet member after only 4 months in office. Martinelli did not name names or say when the cabinet shake up would occur, only that it would be gradual and soon.
The general secretary of the PRD party Mitchell Doens has threatened to make public documents that link the current Panamanian government with the DEA. Doens didn’t say when he might make such documents public, only that he had such documents in his possession and that he would wait and see how Martinelli proceeded with the prosecutions of former government officials before deciding whether or not to release the documents. Doens may face a government investigation for making the allegation.
Recently there has been fear among the Chinese community in Panama that they have been singled out for discrimination by the new Panamanian government. President Martinelli has vehemently denied that there is a campaign against the Chinese community, but Chinese business-owners have complained about being harassed by government officials. President Martinelli’s political party Cambio Democrático entered into an alliance with the Panamista Party during the presidential campaign and the Panamista Party, especially under Arnulfo Arias (1940-1988) had a history of discriminating against the Chinese community – and all immigrant communities in Panama. Many of the most strident Panamanian anti-immigration laws directed at Asians and West Indians were passed during the first presidency of Arnulfo Arias (1940-41). Many members of the Chinese community feel that Martinelli is adopting the same policies as his political allies in the Panamista Party. Some members of the Chinese community in Panama tell me that there is a silent campaign to get members of the Chinese community to relay illegal activities within the community to the Panamanian government. Panamanian government officials vociferously deny such a campaign.
Written By Matt Atlee
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