MESOAMERICA
VOLUME 23, NUMBER 5, MAY 2004
PANAMA
Torrijos Elected President
On 2 May, Martin
Torrijos, an economist and son of ex-dictator Omar Torrijos, won the
presidential race with 47% of the votes.
Torrijos’ Revolutionary Democratic Party (PRD) along with their partner
in the “Patria Nueva” (New Nation) alliance--the Popular Party (PP)--won a
majority of seats in the Legislative Assembly.
Of the 67 mayors elected in the nine provinces of Panama, 42 are PRD
members.
Being the son of one
of the most revered men in Panamanian political history, Martin Torrijos has a
lot to live up to. Gen. Omar Torrijos,
the founder of the PRD, took power in a military coup in ‘68. Unlike his contemporaries in other Central
American countries, Gen. Torrijos ran a populist government that included labor
unions, communist groups and community organizations, as well as
representatives of big business. His
human rights record is virtually spotless when compared with that of Guatemala
or El Salvador during the same period, and his regime kick-started the
Panamanian economy down a road of prosperity that lasted until after his
mysterious death in a plane crash in ’81.
The new president
will have an unprecedented opportunity to make an impact on Panamanian
politics. He will be in charge of
appointing four members of the nine- member Supreme Court, two in Dec ’05 and
two in ’07. He will also be charged
with appointing three members of the Electoral Tribunal, the Attorney General
and the administrator of the Panama Canal Authority in ’05, among other
officials.
Of course, President
Torrijos will have to be careful not to follow in the footsteps of his
predecessors. Since the removal of Gen. Manuel Noriega from power by a US invasion
in ’89, every Panamanian president has been plagued with accusations of
corruption, such as plagued Noriega. Guillermo Endara was not elected but
rather installed into office by the US military. Reports have recently linked Ernesto Pérez Ballardes, the second
post-Noriega president, with the Ports Engineering & Consultants
Corporation, which allegedly deposited money into his Grand Cayman bank account
in exchange for lucrative Panama Canal contracts. Mireya Moscoso, Panama’s
current president, promised to reveal her personal financial records before
taking office, a promise she never fulfilled and which remains a public
scandal. Torrijos had based his campaign, like many of the other presidential
candidates, on promises to fight corruption, but some people doubt that he will
be able to keep his promise.
The first two things
that Torrijos will have to deal with are Panama’s enormous national debt and
its dwindling Social Security fund. Time will tell if he can live up to his
father’s legacy, save the Panamanian economy and check the rampant corruption
in the country.
Buying Votes at the
Supermarket
The recent
presidential election led to a dispute among government officials about
coupons, money and bonds that allegedly were used to buy votes. The dispute
revolved around several key political figures who seemed to be using the
controversy to entrench their own positions and undermine the positions of
their opponents.
The first sign that
there was a problem occurred before the election when Teresita Yániz de Arias,
a Popular Party legislator, denounced the distribution of coupons for purchases
at the “Super 99” supermarket, allegedly to influence shoppers to reelect
legislator Osman Gómez, although no formal charges were made.
After the election
several more cases came before the Electoral Supervisor, Gerardo Solís. Solís claimed that Alvin Weeden, General
Controler of the Republic, opened an account at the La Palma branch of the
National Bank of Panama (BNP) in Darién province, where he deposited money
belonging to the government’s Social Investment Fund (FIS). Money from this
account was allegedly used to bribe voters to reelect legislator Haydée Milanés
de Lay. Gabriel de Janón, director of
the FIS, said $140,000 was taken illegally from the FIS account and used to
bribe voters. Solís said he would oppose the candidacy of Milanés de Lay
because of her connection with the bribery scheme.
Weeden rebutted by
saying that the accusations were politically motivated and an attempt by Solís
to escape accusations connecting him with former President Pérez Balladares,
who reportedly received bribes from the Ports Engineering & Consultants
Corporation in exchange for lucrative Panama Canal contracts. Weeden denied having
any knowledge of the plot to buy votes and has ordered an audit of the FIS
accounts. Weeden accused Solís of approaching him this past Mar to ask him to
conclude his investigations in favor of former President Pérez Balladares. He
also accused Solís of illegally destroying documents while serving as a
government advisor under the Pérez Ballardes Administration (’94-’99), and said
that he will file criminal charges against Solís for doing so.
In separate but
related cases, Solís filed charges against legislator Francisco Pancho Alemán
of the Arnulfista Party for his part in distributing bonds for “Xtra”
supermarket as bribes in the recent election.
Héctor Carrasquilla, the PRD candidate for mayor of San Miguelito, also
entered the fray by leveling accusations at Manuel Cohen, the former Consul of
Panama in Miami and an advisor to the Board of Directors of the National
Savings Bank, for the purchase of 10,000 “Xtra” supermaket $10 bonds for
distribution in support of José Miguel Alemán’s presidential campaign. Carrasquilla
said that the distribution of bonds to citizens of San Miguelito was a campaign
to buy votes for Alemán.
First Round Trade Talks
Close
Panama closed the
first round of trade talks with the US on 8 May, which are part of a series of
free trade agreements that the US has been negotiating in Latin America, based
on the Central American Free Trade Agreement (CAFTA) negotiated during ’03.
In Panama, farmers
and union members protested the trade negotiations. They claimed that the
Panamanian agriculture industry would not be able to compete with the US farm
sector, which is heavily subsidized by the US government.
The CAFTA agreement,
which has yet to be ratified by the US Congress and the legislative assemblies
of other countries, does not include Panama; but it is being used as the basis
for a future trade agreement between the US and Panama.
Both countries are
pushing to close the trade talks before a possible change of leadership after
the Nov US presidential election, for fear that a Democratic administration
will not be as willing to sign a trade agreement with Panama. But, closing the talks before the end of the
year may be unrealistic, considering that US negotiations with Mexico took
three years and negotiations with Chile took 10 years.
Dark Days for the
Environment
As another Earth Day
came and went on 22 Apr, the future seemed to be growing bleaker for the
environment in Panama. The
deterioration of top soil around the Panama Canal, untreated sewage, pesticides
and other agrochemicals being dumped into rivers, wilderness areas slashed and
burned to be used briefly to grow food and afterwards for cattle pasture, and
inadequate management of solid waste are all leaving an ugly mark on the
Panamanian countryside.
According to an Earth
Day report in La Prensa, of 729 companies that are known to dump
wastewater in the rivers, 483 dump unfiltered sewage. It is estimated that 400,000 tons of solid waste are dumped per
year, of which only a very small part is recycled.
The national parks
are also taking a beating; the Montuoso Reserve, for example, has lost 55% of
its forest cover. Close to 125 acres of forest have been illegally cut down
over the past year for a housing development project funded by a national
savings bank.
But, all is not
lost; several student groups and the National Authority for the Environment
(ANAM) are fighting to protect the remaining wilderness. ANAM recently put a stop to deforestation
around the “Brisas de El Dorado” housing development project.
The new president
will have an unprecedented opportunity to make an impact on Panamanian
politics. He will be in charge of appointing four members of the nine- member
Supreme Court, two in Dec ’05 and two in ’07. He will also be charged with
appointing three members of the Electoral Tribunal, the Attorney General and
the administrator of the Panama Canal Authority in ’05, among other officials.
Of course, President
Torrijos will have to be careful not to follow in the footsteps of his
predecessors. Since the removal of Gen. Manuel Noriega from power by a US
invasion in ’89, every Panamanian president has been plagued with accusations
of corruption, such as plagued Noriega. Guillermo Endara was not elected but
rather installed into office by the US military. Reports have recently linked Ernesto Pérez Ballardes, the second
post-Noriega president, with the Ports Engineering & Consultants
Corporation, which allegedly deposited money into his Grand Cayman bank account
in exchange for lucrative Panama Canal contracts. Mireya Moscoso, Panama’s
current president, promised to reveal her personal financial records before
taking office, a promise she never fulfilled and which remains a public
scandal. Torrijos had based his campaign, like many of the other presidential
candidates, on promises to fight corruption, but some people doubt that he will
be able to keep his promise.
The first two things
that Torrijos will have to deal with are Panama’s enormous national debt and
its dwindling Social Security fund. Time will tell if he can live up to his
father’s legacy, save the Panamanian economy and check the rampant corruption
in the country.
Buying Votes at the
Supermarket
The recent
presidential election led to a dispute among government officials about
coupons, money and bonds that allegedly were used to buy votes. The dispute
revolved around several key political figures who seemed to be using the
controversy to entrench their own positions and undermine the positions of
their opponents.
The first sign that
there was a problem occurred before the election when Teresita Yániz de Arias,
a Popular Party legislator, denounced the distribution of coupons for purchases
at the “Super 99” supermarket, allegedly to influence shoppers to reelect
legislator Osman Gómez, although no formal charges were made.
After the election
several more cases came before the Electoral Supervisor, Gerardo Solís. Solís
claimed that Alvin Weeden, General Controler of the Republic, opened an account
at the La Palma branch of the National Bank of Panama (BNP) in Darién province,
where he deposited money belonging to the government’s Social Investment Fund
(FIS). Money from this account was allegedly used to bribe voters to reelect
legislator Haydée Milanés de Lay. Gabriel de Janón, director of the FIS, said
$140,000 was taken illegally from the FIS account and used to bribe voters.
Solís said he would oppose the candidacy of Milanés de Lay because of her
connection with the bribery scheme.
Weeden rebutted by
saying that the accusations were politically motivated and an attempt by Solís
to escape accusations connecting him with former President Pérez Balladares,
who reportedly received bribes from the Ports Engineering & Consultants
Corporation in exchange for lucrative Panama Canal contracts. Weeden denied
having any knowledge of the plot to buy votes and has ordered an audit of the
FIS accounts. Weeden accused Solís of approaching him this past Mar to ask him
to conclude his investigations in favor of former President Pérez Balladares. He
also accused Solís of illegally destroying documents while serving as a
government advisor under the Pérez Ballardes Administration (’94-’99), and said
that he will file criminal charges against Solís for doing so.
In separate but
related cases, Solís filed charges against legislator Francisco Pancho Alemán
of the Arnulfista Party for his part in distributing bonds for “Xtra” supermarket
as bribes in the recent election. Héctor Carrasquilla, the PRD candidate for
mayor of San Miguelito, also entered the fray by leveling accusations at Manuel
Cohen, the former Consul of Panama in Miami and an advisor to the Board of
Directors of the National Savings Bank, for the purchase of 10,000 “Xtra”
supermaket $10 bonds for distribution in support of José Miguel Alemán’s
presidential campaign. Carrasquilla said that the distribution of bonds to
citizens of San Miguelito was a campaign to buy votes for Alemán.
First Round Trade Talks
Close
Panama closed the
first round of trade talks with the US on 8 May, which are part of a series of
free trade agreements that the US has been negotiating in Latin America, based
on the Central American Free Trade Agreement (CAFTA) negotiated during ’03.
In Panama, farmers
and union members protested the trade negotiations. They claimed that the
Panamanian agriculture industry would not be able to compete with the US farm sector,
which is heavily subsidized by the US government.
The CAFTA agreement,
which has yet to be ratified by the US Congress and the legislative assemblies
of other countries, does not include Panama; but it is being used as the basis
for a future trade agreement between the US and Panama.
Both countries are
pushing to close the trade talks before a possible change of leadership after
the Nov US presidential election, for fear that a Democratic administration
will not be as willing to sign a trade agreement with Panama. But, closing the talks before the end of the
year may be unrealistic, considering that US negotiations with Mexico took
three years and negotiations with Chile took 10 years.
Dark Days for the
Environment
As another Earth Day
came and went on 22 Apr, the future seemed to be growing bleaker for the
environment in Panama. The
deterioration of top soil around the Panama Canal, untreated sewage, pesticides
and other agrochemicals being dumped into rivers, wilderness areas slashed and
burned to be used briefly to grow food and afterwards for cattle pasture, and
inadequate management of solid waste are all leaving an ugly mark on the
Panamanian countryside.
According to an Earth
Day report in La Prensa, of 729 companies that are known to dump
wastewater in the rivers, 483 dump unfiltered sewage. It is estimated that
400,000 tons of solid waste are dumped per year, of which only a very small
part is recycled.
The national parks
are also taking a beating; the Montuoso Reserve, for example, has lost 55% of
its forest cover. Close to 125 acres of
forest have been illegally cut down over the past year for a housing
development project funded by a national savings bank.
But, all is not
lost; several student groups and the National Authority for the Environment
(ANAM) are fighting to protect the remaining wilderness. ANAM recently put a
stop to deforestation around the “Brisas de El Dorado” housing development
project.
The administrator of
ANAM, Gonzalo Menéndez, told reporters in Apr that the cutting would stop and
that the company in charge of the project, Cemedin Real Estate, would be fined
$62,500. Since the beginning of this
year ANAM has collected a total of $200,000 in fines.
Oil Spill Threatens the Environment
A large oil spill
that occurred around the end of Mar is being cleaned up off the coast of Isla
Galeta, in the province of Colón.
Workers from Ocean Pollution Control (OPC) have set up barriers and are
cleaning up a chemical known as Bunker C. The area affected is a two km stretch
of beach that is part of a wildlife refuge.
Isla Galeta spans 739
acres and is home to 22 species of birds.
Panama is home to more bird species than in all of North America and is
part of three of the four major migration routes for bird species in the
Americas.
Benjamín Ordóñez, a
biologist for the Smithsonian Institute for Tropical Research, said that they
still do not know how big the oil spill is or where it is coming from, but they
believe it could be from one of the many oil tankers that use the Panama Canal.
Carlos Sagrera, the
chief of operations for OPC, believes Bunker C to be one of the hardest
contaminants to treat. The company has worked hard to clean up the spill
despite the fact that the Panamanian Supreme Court recently suspended the
government’s contract with OPC on a provisional basis. The OPC insists that it
has a contract with the Panama Maritime Authority and that it is going to
continue to clean up the mess.
The last major oil
spill in this area occurred in ’86, when a Panamanian refinery spilled 58
million liters into the Caribbean Sea, the effects of which can still be seen
today.
—Alex Moran