Former President Ernesto Pérez Balladares declared a net worth of $10 million dollars when he took office in 1994. In 2000, a year after leaving office, his personal net worth increased to at least $20 million dollars, in money held in at least eleven bank accounts and real estate. Of that amount, $9,558,000 was not declared by Perez Balladares when he left the office of President in 1999. This is indicated by a preliminary audit ordered by the then-Comptroller, Alvin Weeden, on 20 November 2003, to which this newspaper (La Prensa) had access. The audit found this money held by Perez Balladares in less than three months of investigation by auditors and accounting technicians. The audit found at least $20,828,000 in US dollars of money and assets making up the net worth of Ernesto Perez Balladares as of 31 August 2000, just over double the $10 million dollar figure he declared when he assumed office as President in September 1994. Part of that money was not included in the statement the former president signed on 16 September 1999, after having left office. The estimated net worth of the former head of state becomes relevant, considering Perez Balladares described the $5 million dollar bail established by the Second Tribunal in the money laundering investigation being carried out against him as "unfair." (more)   Click Here To Read The Full Article (941 words)

By DON WINNER for Panama-Guide.com - The Panama America newspaper ran a statement provided by the National Police Chief Gustavo Perez this morning, in which he denies that he participated in the kidnapping of US civilians from the Marriott hotel on 20 December 1989 during the US invasion of Panama, Operation Just Cause. Perez says the documents published on the website of the Panama America newspapers as "facsimiles" are inadequate legal proof. He said he never tried to hide his participation in the Special Anti Terror Unit (UESAT) and he confirmed this in June 2009 before he assumed the position as Chief of the National Police. In discussing his "dishonorable discharge" from the police forces in March 1990, he said the police disciplinary boards of the time could only resolve administrative disciplinary actions and not criminal complaints against officers. In other words, he says he was discharged from the police as an administrative matter and not a criminal matter, because he was accused of having taken the US citizens hostage, which he denies. However, he was never charged with a crime nor did he ever face a trial or judge in these charges. He said he deserves the assumption of innocence, to have his rights respected, that he has nothing to be ashamed of, nor does he have anything to hide from either his family or the nation. Finally, he said he would cooperate fully with the authorities who should investigate or resolve this situation in order to clarify exactly what happened, as well as to apply "repair measures" in his favor, in light of the unmerited accusations made against him.

Editor's Comment: Gustavo Perez is right. There are certain undeniable facts in this case. For example, we know US citizens were in fact kidnapped from the Marriott hotel on 20 December 1989. We know in fact Gustavo Perez was actually accused of having participated in that action, an accusation which he denies to this day. We also know due to this accusation Gustavo Perez was in fact dishonorably discharged from the National Police as part of an administrative action (not legal action) taken against him in March 1990. We also know for a fact no criminal charges were ever pressed against anyone in relation to the December 1989 kidnapping incident in the Marriott hotel.

A Formal Investigation Should Follow: Happily, most if not all of the participants in the kidnapping event (on both sides) are still alive. If the Public Ministry is in fact as independent as Panama's Attorney General Giuseppe Bonissi says they are, then the events surrounding the kidnapping of the US civilians during the Just Cause invasion should be fully investigated. I agree with Gustavo Perez in that all of his legal rights should be respected, including a presumption of innocence in these matters. I would hope the investigation be a "real" investigation and not a quick white-wash, just to do something so they can say they did it and then shove the whole thing under the carpet and hope it goes away. Sadly, this is exactly what I suspect will happen in reality - no real investigation at all. Thus are the realities of the weak Panamanian Judicial System. As such, I seriously doubt Gustavo Perez will ever be charged or convicted of a crime in this case.

Political, Not Legal, Ramifications: Panama's President Ricardo Martinelli has indicated he intends to stick by and support Gustavo Perez. With his declarations today Gustavo Perez has indicated he has no intentions of stepping down due to this evolving scandal. As I have said in earlier comments, it is my analysis this entire evolution is much more political than legal. There are people in Panama who are literally hated - loathed by the "other side" - and politically speaking Gustavo Perez falls into that category. He might be able to defend himself legally by pointing out the fact that facsimiles of old documents published on the website of a local newspaper cannot be considered legal evidence (we all knew that already), however those same documents carry tremendous weight in the realm of public opinion. There's a world of difference between a legal defense and a political downside. I suspect eventually Gustavo Perez will evolve into a sort of virtual political albatross for Ricardo Martinelli. I think these accusations and any ongoing investigation will weigh down Perez's credibility and therefore his effectiveness as the Chief of the National Police. Therefore, it's not a question of a legal defense but rather one of political expediency. Gustavo Perez might be guilty or innocent - who knows, let's wait to see if there is an investigation, if he is ever actually charged with a crime, and what the judge in the case decides. Until then, he's to be presumed innocent. However, in the meantime political realities might mandate that he no longer continue to serve as the Chief of the National Police. And that's a decision only Ricardo Martinelli can make. Innocent US civilians were in fact kidnapped and held as hostages during the Just Cause invasion as part of Noriega's strategic defense plan, and someone in fact did it. I would love to see the Panamanian Justice System investigate the matter and prove, once and for all, who that "someone" was - protecting the legal rights of the accused during the entire process.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

Torrijos Pauzner Rachel, the sister of former Panamanian President Martín Torrijos, was the legal representative of the Nuctech company that won a public bid in 2007 for the government's purchase of new cargo scanning systems that were to be used by the National Customs Authority. The company was the only bidder, and their bid was $24 million dollars. Torrijos Pauzner declined to discuss the case yesterday. Instead, her partner, the lawyer Jose Javier Rivera, said that being the President's sister at that time did not impede her from participating in the bidding process for the government contract as the legal representative of the Chinese company. Yesterday La Prensa revealed that none of the scanners were ever installed or used, and that several of the scanners are damaged and rusting in a hanger of the former Howard Air Force Base. The Customs Director during the Torrijos administration, Vilma de Luca, said yesterday that when she left office in June 2009, an extension of the guarantee for these scanners was pending, "in view of problems not attributable to the providing company." (Source - La Prensa)

Editor's Comment: Remember when the PRD went nuts because one of Ricardo Martinelli's cousins won some contracts to make embroidered shirts? I don't think those contracts were for $24 million dollars, and the shirts were actually used. I'm going to find out how much these scanners cost on the open market right now. No matter, (in my humble opinion) paying $24 million dollars in public funds for cargo scanners that don't work is a really bad deal no matter how you slice it. Well, it was probably a pretty good deal for Torrijos' sister, in any case. She got paid, the Chinese company got paid, so it's certainly a good deal for them. However the Panamanian people got screwed, and whatever the scanners are supposed to be looking for is getting through, so it's a bad deal for the customer. And how many other bids worth $24 million dollars were handed out by the Torrijos administration when there was only one company bidding? And we're supposed to believe that the fact that his sister was pushing the deal through had absolutely nothing to do with it? Yeah, right.    

Former Panamanian president Ernesto Perez Balladares said yesterday he would not post a $5 million dollar bond as established by the Second Tribunal of Justice in order to be released from house arrest on bail. Perez Balladares's lawyer Guillermina McDonald said in a statement his decision is based on the fact they consider the amount of bail established by the Superior Tribunal is unfair. "It results in a denial of freedom for the former president, a right belonging to every citizen," said McDonald. The lawyer contends Perez Balladares acted within the law during his administration, and the application of the supposed crime of money laundering by the Specialized Prosecutor for Organized Crime did not exist at the time (1994 - 1999). "It is false that to the bank account of the company Shelf Holding Inc., money was transferred in cash, and as well we deny that any kind of links exist between the former president and the the companies PTY Adventures, Joyas del Mundo, Grupo Granate, S.A.; Progress Center Enterprises Inc, Krestel Management Inc, Lucky Games and Cirsa", said McDonald. Ernesto Pérez Balladares remains at his home in Altos del Golf, where he is complying with a house arrest order imposed by the Special Prosecutor for Organized Crime. (Source - La Critica)

Editor's Comment: The $5 million dollar bail applied to Ernesto Perez Balladares was the highest ever established in the history of the Republic of Panama.   

The people who live in "El Potrero" are not talking about anything else. The $3 million dollar farm. Rumors are circulating everywhere, and everyone wants to know the location of the farm. There are very few people in the village who know the exact location of the farm which has been used to secure the release of 13 people on bail, including the former Ministers of Education Salvador Rodriguez and Belgis Castro, and the former Municipal Engineer Jaime Salas. The villagers are afraid of what might happen to their lands, once the authorities begin to investigate farm number 50728. Omar Osses wants the investigation to take place in order to avoid problems for the community. Osses owns one hectare of land. He, like many others, are wondering what will happen to their farms. They don't know anything, and they only know what they have read in the newspapers. There are others who hope the value of farm number 50728 could also apply to their lands. "I want to sell my farm to see if I can become a millionaire," said Jose Neri Gonzalez who also owns one hectare.

IN SEARCH OF THE LOST FARM - Our mission was not easy. None of the local authorities knew where the million dollar farm was located. "We don't know where that farm is," said Sacramento Guevara, the representative of El Potrero. Guevara even asked area residents if they knew of the farm or its owner. "Through conversations with the inhabitants we know that several properties have been sold in this area, but none with such a high price," he said. Not much is known about Rodrigo Muñoz Sánchez either, and the only thing for sure is that the farm in question was owned by Mariela Bernal and that she paid just $6,000 for it, compared to the $3 million dollars it's supposedly worth on the open market now. We finally reached the place. Twenty minutes drive from the entrance of El Potrero, and then after walking for half an hour, we found the millionaire hectare. There is nothing different about farm number 50728 that makes it different from the other surrounding properties. It's hilly terrain, surrounded by trees.

José del Carmen Pérez who owns the neighboring property said Mariela Bernal sold her farm to Edwin Guerrero, and intermediary. Now the intermediary, with whom La Estrella was able to talk, is considering selling their land in El Potero to become a millionaire. "The value Rodrigo gave the land is good for us," he said.

After the anomalies found with farm 50728 that was used to obtain multiple bail bonds, it was learned there is a draft of a new law in the works in the Public Ministry, that seeks to change Article 2162 of the Judicial Code, to which the following would be added: "In the case of bail bonds the judge or prosecutor may ask the Directorate of Land Registry to certify that the property being used as collateral to guarantee the bail bond actually has the value indicated to guarantee the security of the State." (Source: La Estrella)   

Panama's Special Prosecutors for Corruption, Organized Crime, and Drug Trafficking have asked the courts to revoke bail for fourteen people, among them the former Ministers of Eduction Belgis Castro and Salvador Rodriguez, as well as the former Municipal Engineer Jaime Salas. Panama's Attorney General, Giuseppe Bonissi, said he asked each of these prosecutors to revoke the bail for everyone who achieved their release through the use of farm number 50728. "They (the 14 accused) will have to speak with their lawyers who should recommend the replacement of the bond for those who meet the requirements," said Bonissi. The Attorney General also noted that it falls to the courts to decide if bail will be revoked or not. Farm number 50728 is located in pasture land near La Pintada in Penonomé, and was used to obtain bail for people involved in ten different investigations for crimes related to corruption, crimes against the public health, and money laundering, and it is now being investigated for alleged irregularities involving the over valuation of land. (Source: La Critica)

Editor's Comment: That's what I thought. Check out the farm in the photo. The owner swore out a statement to a Notary Public in November 2009 that this land was planted with 700 teak trees and that it was worth $1 million dollars. Then when he segregated the one hectare lot he swore out another statement saying it was worth $3 million dollars. I don's see any teak trees in that photo. This land is in the middle of nowhere, access by dirt road only, no water or electrical, and it's probably worth about $3,000 bucks, tops. Now - how many other people have obtained bail using this same trick? Obviously, the only reason they found out about this one was because the three notorious former PRD politicians are involved. This case has served its purpose of highlighting yet another deficiency in the Panamanian justice system. Apparently as long as you know how to crank out the right paperwork, no one will ever check to see if it's being done right.   

The Public Ministry has launched an investigation against Gustavo Perez, the Director of the National Police, for a kidnapping that occurred in December 1989. Several former officials were cited to testify, among them Jaime Abad, the former Director of the Judicial Technical Police (PTJ), and Osvaldo Fernandez, who served as Director of the National Police. Several days ago it was announced that Gustavo Perez was discharged from the National Police in 1990 for his alleged involvement in the kidnapping of US citizens during the Just Cause invasion of Panama on 20 December 1989. Abad said he wants to trust the impartiality and straight acts of Attorney General Giuseppe Bonissi. He also said he hopes the investigation will be conducted in the most professional manner possible according to law. (Source - Telemetro)   

The Prosecutor for Administration, Oscar Ceville, accepted a new complaint against the former Attorney General Ana Matilde Gomez, for the alleged crime of theft and concealment of public documents in the case against convicted Colombian scam artist David Murcia Guzman, who owned the DMG pyramid scheme. On February 5, Ceville opened an investigation and ordered that all necessary steps be taken in order to clarify the allegations made by defense lawyers representing Murcia Guzmán, who also is under investigation in Panama for money laundering. At the same time, Ceville sent a copy of the complaint to Attorney General Giuseppe Bonissi, which was filed by Roniel Ortiz, Carlos Augusto Herrera and Ruben Ortiz, which also asks for an investigation on charges of abuse of authority, abuse of functions, crimes against the public trust (abduction and concealment of evidence) against the former Attorney General, as well as the former Secretary General of the Public Ministry Rigoberto Gonzalez, the former director of immigration Clovis Sinisterra, the Second Drug Prosecutor William Parodi and the Special Organized Prosecutor Jose Ayú Prado. As part of this complaint others will also be investigated for the possible commission of crimes, such as Javier Fletcher, who served as an undersecretary of the Security Council and Luis Alberto Martinez, a former Auxiliary Prosecutor of the Republic. According to the complainants, these government officials violated David Murcia Guzman's right to due process, his human rights with regards to conventions on extradition, and his right to a legal defense. However, the prosecutor Ceville ordered the closing of another complaint filed by defense attorneys for David Murcia against Ana Matilde Gomez, alleging abuse of authority and abuse of functions in the handing over to David Murcia Guzman to the Colombian authorities. (Source - La Critica)   

By DON WINNER for Panama-Guide.com - This afternoon Panama's Second Superior Tribunal fixed bail for former Panamanian president Ernesto Perez Balladares, who is being investigated by the Special Prosecutor for organized crime and who has been charged with crimes related to money laundering, at $5 million dollars. Perez Balladares has been locked up under house arrest since 14 January 2010. He is being investigated on charges related to concessions for slot machine gambling rooms handed out during his administration (1994 - 1999) and apparently he was still receiving kickbacks from those companies. If he makes bail, then he will be able to leave his house while he awaits trial. I suspect the prohibition on leaving the country will remain in place. And after what happened with the former Education Ministers Belgis Castro and Salvador Rodriguez, and the former Municipal Engineer Jaime Salas, I suspect the courts will be taking a very hard look at anything put forward to guarantee bail for one of the PRD's most prominent politicians, Ernesto Perez Balladares.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

On 12 March 2010 the Tax Office of the Ministry of Economy and Finance will inspect farm number 50728, owned by Rodrigo Muñoz and located in the area of El Potrero in the district of La Pintada, Coclé province. This farm was used as a guarantee to secure bail for the former Ministers of Education Belgis Castro and Salvador Rodriguez, as well as eight other prisoners. The Directorate of Land Registry will make an assessment of the land that is supposedly worth three million dollars. It was learned the purpose of the inspection is to perform a specific appraisal to determine it's true value. Government authorities have launched an investigation into the ten times this property was used as a guarantee to secure the release on bail of suspects accused of such crimes as drug trafficking, embezzlement, money laundering, and crimes against the public faith. (Source - El Siglo)   

Panama's Seventh Criminal Circuit Prosecutor ordered that former Municipal Engineer Jaime Salas remain on house arrest, and also that he be barred from leaving the country. Salas was questioned for more than six hours yesterday by the Seventh Criminal Prosecutor Sofanor Espinosa, for the crime of fraud to the detriment of U.S. businessman Yana Franz. Defense attorneys for the former Municipal Engineer vowed to appeal the decision. (Source - La Estrella)

Editor's Comment: Jaime Salas was one of the three guys who managed to slip one past the judicial system and obtain bail by putting up a one hectare parcel of land supposedly worth $3 million dollars, but which actually is worth much less. He had been arrested and was in jail on separate charges in a different case. As of yesterday afternoon he was put back on house arrest in this case. It keeps getting deeper and deeper for Jaime Salas, who was one of the most powerful men in Panama at one time, responsible for and presiding over the massive construction boom in Panama City during the previous administration.   

Panama's Seventh Circuit Prosecutor, Sofanor Espinosa, is currently taking the sworn statement of former Municipal Engineer Jaime Salas, which started this morning in the Public Ministry. An investigation is being conducted into the alleged fraud of $1.5 million dollars in damages to a US businessman who purchased an apartment in Punta Pacifica. The investigation also involves Isaac Btesh, the developer of the building. This judicial proceeding comes as a result of a criminal complaint filed against Salas and Btesh in August 2009 by American Yana Franz, the representative of Dynamic Investment Solutions Inc. Franz says in 2006 the company Regent Veintiuno (21) S.A., presided over by Btesh, sold an apartment in the Bella Mare building, which could not be inhabited due to damages in the infrastructure. The building obtained an occupancy permit in August 2007, when Salas was in charge of the Direction of Municipal Works and Construction. Which is why in the complaint Franz argues the permit was issued, even though there were damages in the electrical system and in the infrastructure, which made it inhabitable. (Source: La Prensa)   

Panama's Attorney General confirmed he is investigating the assignment of mortgage bonds so the former Education Ministers Belgis Castro and Salvador Rodriguez and former Municipal Engineer Jaime Salas could make bail. Bonissi said on RPC Radio two months ago they were investigating a farm that had been used to obtain bail for many people, as many as thirteen. He said the Tax Office of the Ministry of Economy and Finance will check to determine the actual value of this property. And, he said that if the information is confirmed that the value of the property has been artificially inflated then bail could be revoked. (Source - Telemetro Reporta)   

By DON WINNER for Panama-Guide.com - There's an expression in Panamanian Spanish - "Le metieron tremendo gol..." - which literally translates to "they scored a tremendous goal" (as in soccer) - but it's really slang for "they pulled one over" on him or her. As the Panamanian justice system begins to wrestle with the details and facts surrounding the question of "how did Belgis Castro, Salvador Rodriguez, and Jaime Salas make bail?" - the term "le metieron un tremendo gol" is being used often. Meaning, the people who manipulated all of this paperwork basically managed to pull one over on the two judges who decided to free these three men on bail. I spent the afternoon digging through records available in the Public Registry and examining the documents related to Farm number 20202 - the original parcel of land used to secure bail for Belgis Castro, Salvador Rodriguez, and Jaime Salas. There are a lot of details, but here are the primary transactions in chronological order;

• Farm number 20202 is acquired by Mariela Abigail Bernal Perez on 30 July 1996. It was two hectares plus 3,803.65 square meters in size (23,803.65 square meters total.)
  
  
• This farm was sequestered by a judge in 2006 as part of a legal case, and in that case the assigned value of the land was only $2,541.97 (not $3 million dollars.)
  
  
• On Monday, 12 October 2009, former Education Minister Belgis Castro was returned to prison for contempt of court. He had been granted "house arrest" which he promptly violated by attending a meeting of the National Executive Committee (CEN) of the PRD.
  
  
• (Assumption - All of this action to secure this plot of land and to artificially increase its value was conceived as part of a plan to obtain bail for Belgis Castro, the first of the three who was arrested and sent to jail.)
  
  
• The original owner of farm number 202020, Mariela Abigail Bernal Perez, sold it to Rodrigo Munoz Sanchez on 11 November 2009 - for $1,000 dollars. As a result of this transaction they paid a total of $50 dollars in taxes.
  
  
• On 17 November 2009, the new owner, Rodrigo Munoz Sanchez, segregated one hectare from the original two hectare farm. When he segregated the lot he assigned a new value to this one hectare parcel of $3 million dollars.
  
  
• On 26 November 2009, the new owner, Rodrigo Munoz Sanchez, testified before a Notary Public that the entire farm of more than 2 hectares has a total value of $1 million dollars, due to the fact that it is planted with 700 teak trees.
  
  
• (Note: I just spoke with a recognized expert in teak plantations in Panama. We ran through a couple of scenarios and made some basic assumptions to establish a premise from which to determine an actual value for this land. Assuming the entire 2 hectare parcel is indeed planted with 700 teak trees, and assuming one the one hectare which will later be separated from this farm is planted with 350 trees, and assuming the age of those trees is about 16 years based on the level of thinning, and also assuming that the plantation has been properly managed, then the entire 2 hectare parcel of land is probably has a real market value of about $50,000 to $60,000 dollars, with one hectare worth about $25,000 to $30,000 dollars. Again, this was done to account for the actual value of the land, if it turns out to actually be planted with teak. The next step is to drive there, take a look at the actual land, and determine if it's really planted with teak or not.)
  
  
• On 18 December 2009 former Education Minister Salvador Rodriguez was arrested on corruption charges.
  
  
• Just three days later, on 21 December 2009 former Municipal Engineer Jaime Salas was arrested on corruption charges.

So Which Is It? Just how much is this land actually worth? Is it worth $2,500 dollars, the value assigned when it was sequestered in 2006? Or is it worth $1,000, the sale price? Is the entire 2 hectare farm worth $1 million dollars as stated by the owner because it's supposedly planted with 700 teak trees? Or is the one hectare segregation worth $3 million all by itself? Obviously all of this creates more questions than answers. My first question - is the land actually planted with teak, or not? My second question - what is the actual value of the one hectare of land that was used to obtain bail for Castro, Rodriguez, and Salas? No matter. This entire debacle now has the full attention of the Panamanian press, Public Ministry, and Supreme Court. Obviously "le metieron un tremendo gol" and now corrective action will be taken. One of the people I was talking to in conferring about all of this said "there's a certain degree of ironic comedy in the fact that the guys who were sent to prison on corruption charges used further acts of corruption to make bail - I mean, what did you expect?" It will be interesting to see how all of this develops, and I expect the three blind mice will find themselves back in the El Renacer prison again before too long. Only in Panama...

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

The President of Panama's Supreme Court, Anibal Salas, has ordered an investigation into the processes that allowed for the granting of bail bonds to secure the release of former Education Ministers Belgis Castro and Salvador Rodriguez, and former Municipal Engineer Jaime Salas. The move came after a meeting between Judge Salas and Panama's Attorney General, Giuseppe Bonissi, who advised the court that he disagreed with the way the judges responsible for the cases accepted the bail to secure the release of the politicians, who are all members of the Democratic Revolutionary Party (PRD). In an interview with TVN, Bonissi described it as "completely illegal" that the same farm has been used as a mortgage guarantee to secure the release of Castro, Rodriguez and Salas. Bonissi referred to farm number 50,728, located in the village of El Potrero, in the district of La Pintada, Cocle Province, which all three PRD politicians submitted as mortgage to ensure their release. Bonissi said the investigation could reach the Director of Taxes and Assets of the Ministry of Economy and Finance, Publio Cortes, because he certified that farm number 50,728 has a tax value of $3 million dollars, the amount used to cover the combined $800,000 dollars of the three bail bonds. The Public Registry also inscribed the property with that value on behalf of Rodrigo Muñoz Sánchez. "The lands adjacent to that farm do not have that value, and that makes one think the real value of the farm was manipulated," said Bonissi.

Judges Under Fire: The investigation initiated by the Supreme Court would be directed toward the Judge of the Second Criminal Court, Hilda Bonilla de Vidal, who accepted the property mortgage on behalf of Jaime Salas for $150,000 dollars. The former Municipal Engineer is charged with crimes against public administration and against the national economy. The Supreme Court investigation will also examine the actions and decisions of the judge of the Eleventh Criminal court, Josefina Sclopis, who accepted the mortgaged property to secure the release of the two former Education Ministers Belgis Castro and Salvador Rodriguez, both of whom are being investigated for alleged irregularities in contracts to remove fiberglass from public schools.

Salas Will Be Interrogated Tomorrow: Jaime Salas, the former Municipal Engineer, will appear on Wednesday before the Seventh Circuit Prosecutor, Sofanor Espinosa, to be questioned regarding a complaint about an alleged scam of $1.5 million dollars in detriment to a businessman from the United States who bought an apartment in the PH Bella Mare building in Punta Pacifica. Isaac Figueroa, Salas's lawyer, said his client will attend this third summons to appear made by Prosecutor Espinosa, who has issued an arrest warrant against Salas to have him taken to her office tomorrow morning at 8:30 am sharp. The affected businessman claims Salas issued an occupancy permit even though the building was not, in fact, completed. Meanwhile, Samuel Jimenez, a lawyer for Isaac Btesh, the promoter of the PH Bella Mare, said his client will not attend the hearing tomorrow morning because he is in the United States receiving medical treatment. (Source: La Prensa)   

By DON WINNER for Panama-Guide.com - There have been three notorious corruption cases in the past six months involving PRD government officials from the previous administration who have been locked up while the justice system fully investigates the charges and allegations pending against them. Two of these, Belgis Castro and Salvador Rodriguez, are former Ministers of Eduction. Prosecutors are investigating both for problems with government contracts to supposedly remove fiberglass insulation from public schools. The third, Jaime Salas, was the Municipal Engineer of Panama City under Mayor Juan Carlos Navarro. Prosecutors are investigating Salas for supposedly steering government contracts to a company he and his wife own (and there are other charges and allegations pending against him as well.) Anyway, all three of these guys were arrested and thrown into the El Renacer prison facility in Gamboa. In these cases two different judges set bail. So if you're in prison in Panama and you need to make bail, what do you have to do?

It's A Little Different in Panama: Let's say the judge establishes your bail at $150,000 dollars. If you want you can simply lay down the cash and walk. However, very few people have that much money on hand. The accused are loath to put their homes, vehicles or other assets at risk. Very often a third party will step up and post your bail, for a fee. This person, as a third party, signs documents saying they will be responsible for paying the money should you skip and fail to appear. Most of the time the numbers are very small - for instance it's common for a local Justice of the Peace to establish a $600 dollar bond to keep two people involved in a street conflict away from each other. Very often a third party - usually a mother or a brother or some other family member - is required to actually establish the bond. That way, if one of the violators breaks the peace, then the Justice of the Peace forces the third party to pay the $600 dollars, while the violator gets 30 days in jail. Getting a third party involved reduces tension and potential for future conflict, because they have a vested interest in keeping the peace. So anyway it's relatively common for a third party to step in and provide documents and signatures to guarantee a bond for someone who is seeking to make bail and avoid jail.

It Gets Interesting: Yesterday La Prensa broke a story revealing that all three of the former PRD government officials - Belgis Castro, Salvador Rodriguez, and Jaime Salas - made bail thanks to the very same person. What's more, that person put up a one-hectare plot of land as collateral to guarantee the bonds. In the documentation the owner of the land says this one hectare plot of land located in El Potrero in the district of La Pintada, is worth $3 million dollars. Of course in reality the land is probably not worth anywhere near that much money - it's located up in the interior in the middle of nowhere. One hectare of land in the middle of Panama City might be worth $3 million dollars, but not up there. This land was used to guarantee the combined $800,000 dollars bail for all three of the accused - Castro, Rodriguez, and Salas - who are now free as they await trial. Only in Panama...

Opening An Investigation: At first blush this story seems pretty self-explanatory. On the surface it seems these three guys are apparently making one more attempt to "get over" on the system. Their smart lawyers know how to manipulate every element of the relatively weak Panamanian justice system and they simply exploited one more loophole. After the news broke yesterday afternoon Panama's Attorney General Giuseppe Bonissi said he would be taking a hard look at all three cases, and if they have in fact manipulated the system to be released on bail, then most likely bail would be revoked and they would be returned to prison. There's a tendency for the Panamanian justice system to give people one chance to do the right thing, and if you try to "get over" then that chance is revoked. For example, initially Belgis Castro was given "house arrest" due to supposed poor health. The same day his house arrest was supposed to start, he attended a PRD political event. Journalists reported on it, his house arrest was revoked, and he was rearrested and returned to prison. Once the justice system figures this one out, I expect these three guys will be returned to prison, where they will actually stay this time. Anyway, I just wanted to start this one off with a quick explanation of what's going on (as far as I understand it right now) because it's a unique situation, one I've never seen before and a little confusing. And of course there will be more coming on this during the week, so stay tuned to the next episode of "How The Worm Squirms".

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

A month after irregularities were revealed in the management of the resources of the Social Investment Fund (FIS) involving current and former lawmakers in Panama's National Assembly, a "code of silence" is being enforced within the entity. A source, who requested anonymity, said FIS officials received a memorandum prohibiting them from divulging any information about the institution and from giving interviews to the news media. The source added within the institution nothing has been said or been done on the supposed closure or transfer of the institution, as was announced by President Ricardo Martinelli. After the irregular management of FIS funds was revealed, the President announced he would close the institution within six months. The announcement was made last January. La Prensa tried to obtain a reaction from the Director of the FIS, Giacomo Tamburrelli, but he did not respond to calls from this newspaper. To date the results of the audit being conducted by the Comptroller of the Nation within the FIS are still unknown. That audit was ordered in order to determine the veracity of the privately-commissioned audit ordered by Tamburrelli, which revealed that Deputies of the National Assembly used millions of dollars of FIS money for their personal benefit. (Source: La Prensa)   

The former governor of the province of Herrera, Eulalia Villalaz de Cedeno, was sentenced to three years in prison by the Second Circuit Court of Los Santos. Bernabé Hernández and Federico Young Barrera were also convicted and sentenced to 16 months in prison each. Their crimes were related to the forging and falsification of public documents, to the detriment of Moisés Cedeño Samaniego. The three people are also disqualified from holding public office for the same period of time as their sentences. (Source: Panama America)

Editor's Comment: A former governor convicted and sent to prison? That's unusual in Panama, and could be perceived as progress in the fight against institutionalized corruption, although I don't know the details if the ins and outs of this case.   

The construction company Proyectos del Norte, S.A., which has a members of it's board of directors officials from the Panamanian National Assembly associated with former National Assembly Deputy Pedro Miguel Gonzalez, benefited from direct contracts awarded by the previous administration of Martin Torrijos worth more than $5 million dollars. But there's more - apart from the fact that the company's board of directors is comprised of people directly associated or connected with Pedro Miguel Gonzalez (a friend, a former driver, and a former bodyguard), Gonzalez received money from this company, according to documents to which La Prensa had access. Proyectos del Norte, S.A. - a company which operates from a family residence - obtained several contracts from the Ministry of Public Works and the Social Investment Fund worth about $5 million dollars during the last 18 months of the Torrijos administration. Gonzalez denied being a shareholder in the company and explained that the money he received in 2007 from Proyectos del Norte, S.A. was for the contracting of some heavy equipment he owned. "I've never been a shareholder of Proyectos del Norte, S.A.," he said. The largest direct contract awarded to Proyectos del Norte, S.A. materialized on 22 June 2009, just eight days before Gonzalez left office. The company was paid $3.3 million dollars to rehabilitate some roads in Chiriqui. The rationale used to bypass the requirement for an open public bidding process was for the "safety to the public and the State." (Source: La Prensa)

Editor's Comment: And thus, it begins. At least with this case we don't have to be worried that Pedro Miguel Gonzalez will run to hide in the United States somewhere. Venezuela, maybe... Remember, the case against Ernesto Perez Balladares started with a story that was published in La Prensa.   

By DON WINNER for Panama-Guide.com - Former Panamanian president Ernesto Perez Balladares remains in his house in Panama City under house arrest. He and his lawyers had filed a whole slew of petitions before the judge who is handling his case, and this week most of those were denied and rejected. He had asked to be let free on bail, and that request was denied. He will remain in his home under house arrest. He had asked to have his passports returned to him, and that request was also denied. Ernesto Perez Balladares is the focus of an investigation into concessions granted to operate "slot machine rooms" during his administration (1994 - 1999). He has been charged with money laundering for supposedly receiving millions of dollars in kick-backs from the companies who were given the concessions. The judge in the case, Diego Fernández Panigua of the Ninth Criminal Circuit Court of Panama, basically denied several petitions that had been filed, all having to do with the various restrictive measures applied to Ernesto Perez Balladares by the Special Prosecutor for Organized Crime, José Ayú Prado. All of this means the investigation is moving forward, and in the meantime Ernesto Perez Balladares will remain were he is right now, at this house.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

Most of the cases considered to be "high profile" in the Republic of Panama never even make it past the investigation stage, and not even one of these has ended with a conviction. Almost all of these cases are dismissed in the middle of the investigation for lack of evidence or due to parliamentary immunity. This is the conclusion of a report prepared by the Citizens Alliance for Justice, a network of organizations working to reform and improve the justice system in Panama, which performed an analysis of the status of 28 "high profile" cases, all linked to acts of corruption by government officials. The study also reveals that many of these cases are not progressing due to the number of delaying tactics employed by defense attorneys that have the sole aim of exploiting a weakness in the Public Ministry: the time limitations faced by prosecutors to investigate and prosecute cases. Add to this the reluctance of public bodies to participate in legal cases as the plaintiff, and the "discretion" with which the Controller conducts legal audits of public funds and accounts, resulting in that most cases do not even include complete reports on all of the phases of a public contract. "The brings as a consequence that some people are excluded from being related to the crime, because they are not identified in these reports," said the Alliance in its analysis. What's more, the report points out that the Comptroller and prosecutors do not have staff qualified to conduct specialized forensic audits, or people qualified to analyze and report on complicated finance and banking issues. The Alliance estimates as many as 25 specialized auditors would have to be hired, only for the four Special Anti-Corruption Prosecutors offices.

Another complaint is the time it takes for the Comptroller to complete and audit. Between 2005 and 2009 the Comptroller issued 471 reports to the Public Ministry. Of those, 150 took more than one year to be written and issued, 67 took more than two years, 22 took more than three years, eight reports took more than four years, and three reports required more than five years to be prepared. Only 87 audits were ready in just months or days. "Moreover, there is a clear the lack of effectiveness in relation to the amount of injury, given that only 1% of the 471 audits correspond to cases involving damages to the State of more than $1 million dollars," said the Alliance.

The Bullet Proof Vest: Another problem in the fight to combat corruption is the excess of privileges and immunities, "especially for elected officials, the length of immunity is too long." In fact the elections of 3 May 2009 have not yet been officially closed, so that no candidates can be investigated without the prior permission of the Electoral Tribunal (TE). It was precisely this immunity - provided to former president Mireya Moscoso - that prevented any advance in the investigations into the mishandling of funds donated to Panama by Taiwan and managed by the Fundación Mar del Sur, a private entity led by ministers and key figures in the Moscoso cabinet. In November 2009, after Moscoso lost her immunity as a Member of the Central American Parliament, the Supreme Court authorized the Public Ministry to resume the investigation. Parlacen immunity also was what saved former president Ernesto Pérez Balladares from being investigated for his involvement in the grant given to Ports Engineering and Consultants Corp. (PECC).

Recommendations: What can be done to punish the corrupt? The Alliance would like to reform law Law 59 of 1999 on the declarations of assets to ensure their dissemination and facilitate investigations into accusations of unjustified enrichment. Another step would be to reform the Penal Code to stiffen penalties that impose interim measures, because currently the penalties are very light. "Preventative detention can only be used in cases carrying potential sentences of more than four years, and the vast majority of corruption cases only carry potential sentences of no more than three years," noted the organization. It also advocates the adoption of legislation to protect witnesses and whistle blowers, and to regulate the procedure for compiling audits. (Source: La Prensa)   

Panama's Ministry of Health (MOH) will conduct an audit, of both the money spent and the medical effectiveness of the program "Operation Miracle," an initiative prompted by the previous administration of Martin Torrijos using Cuban doctors who operated in low income areas of the country for people with vision problems. Health Minister Franklin Vergara said they would check the quality of operations made by the Cuban ophthalmologists as well as the program's costs. "We will review it all, all costs," he said. He said the Cuban initiative, which ended a few weeks ago with the departure of the physicians to Havana, cost the government of Panama about $88,000 dollars per month, apart from the wages of the MINSA staff who collaborated with the project, and money spent to transport patients. Vergara reiterated that they have not been able to locate the more than 45,000 case files of the patients who were supposedly attended, so he asked to speak with the Ambassador of Cuba in Panama, Carlos Garcia, but thus far their calls for a meeting have not been addressed. "We have not been able to talk to the Ambassador. Our staff has been trying to talk to him, but they have told us that he is too busy," said Vergara. (Source: La Prensa)

Editor's Comment: I can't wait to see what the audit turns up. Why was the government of Panama paying more than $88,000 dollars per month (plus local salaries and expenses) for this program? That's well over $1 million per year. I guess this was just an "end-around" and a way to let the Cuban doctors work in Panama, even though that's supposed to be prohibited by Panamanian law. And what about the actual results? How many patients were actually treated? On the surface this program sounds like it was just another scam cleverly disguised as a "feel good" social program. Ask yourself - do you think there would be these kinds of questions being asked about the visit of the US Navy Hospital Ship Comfort? Of course not...   

WASHINGTON—A Virginia resident pleaded guilty today in connection with his role in a conspiracy to pay bribes to former Panamanian government officials, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; John Perren, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Jennifer Smith Love, Special Agent in Charge of the FBI’s Richmond Field Office; and John P. Torres, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Washington, D.C., office. John W. Warwick, 64, of Virginia Beach, Va., pleaded guilty before U.S. District Court Judge Henry E. Hudson in Richmond, Va., to a one-count indictment charging him with conspiring to make corrupt payments to foreign government officials for the purpose of securing business for Ports Engineering Consultants Corporation (PECC) in violation of the Foreign Corrupt Practices Act (FCPA). Warwick was indicted on Dec. 15, 2009. PECC, a company incorporated under the laws of Panama, was affiliated with an engineering firm based in Virginia Beach. According to the indictment, PECC was created so that Warwick, co-conspirator Charles Jumet, the engineering firm, and others could corruptly obtain certain maritime contracts from the Panamanian government.

According to court documents, Warwick and Jumet participated in a conspiracy to pay money secretly to Panamanian government officials for awarding contracts to PECC to maintain lighthouses and buoys along Panama’s waterway. In December 1997, the Panamanian government awarded PECC a no-bid, 20-year concession to perform these duties. Upon receipt of the concession, Warwick, Jumet, and others authorized corrupt payments to be made to the Panamanian government officials. In connection with his guilty plea, Warwick admitted that at least from 1997 through approximately July 2003, he, Jumet and others conspired to make corrupt payments totaling more than $200,000 to the former administrator and deputy administrator of the Panama Maritime Authority and to a former, high-ranking elected executive official of the Republic of Panama.

As part of his plea agreement, Warwick has agreed to forfeit $331,000, which represents the proceeds of this crime. At sentencing, scheduled for May 14, 2010 before Judge Hudson, Warwick faces a maximum of five years in prison and a fine of the greater of $250,000 or twice the gain or loss. Jumet pleaded guilty on Nov. 13, 2009, to a two-count criminal information charging him with conspiring to make corrupt payments to foreign government officials for the purpose of securing business for PECC, in violation of the FCPA, and making a false statement. Jumet is scheduled to be sentenced on March 26, 2010. The case was prosecuted by Trial Attorney Rina Tucker Harris of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael S. Dry of the U.S. Attorney’s Office for the Eastern District of Virginia. The case was investigated by the FBI’s Washington and Richmond Field Offices, as well as by ICE.   

The former President of the Republic, Mireya Moscoso, could become the second former president to be investigated for corruption, after the Supreme Court ordered the case file against her to be returned to the Attorney General. Although Moscoso declined to make any statement about the case, some members of the Panameñista political party do not agree with the investigation, and they are even calling it a persecution. Attorney General Giuseppe Bonissi could investigate Moscoso over the alleged illegal handling of $70 million dollars donated to Panama by the government of Taiwan. The first former president to be investigated, Ernesto Perez Balladares, remains under house arrest. (Source: TVN Noticias)

Editor's Comment: That didn't take long. In less than a week after the arrival of the new Attorney General the Supreme Court returns this case to the Public Ministry. Golly, do you think the Supreme Court is coordinating their decisions with the prosecution? Listen, I've spent years blasting holes in the administration of Mireya Moscoso, and I applaud this action. Her administration was widely perceived to be a national embarrassment, and the Panameñistas were thrown out on their asses as a result. Martin Torrijos was swept into power on a "zero corruption" campaign promise in 2004. Well, we all know that that worked out. Mireya Moscoso spent the entire five years of the Torrijos regime protected from prosecution thanks to her being a member of the Central American Parliament. Well, that's done now and there are still serious questions remaining about the handling of the $70 million dollars from Taiwan. Go get 'em, guys. The best you can hope for is incremental change over time. To be honest I was surprised by this move. I didn't think this government would move against Moscoso. Well, the Juan Carlos Varela branch of the Panameñista party is not the same as the Mireya Moscoso branch, which basically has no members at all any more. The administration of Mireya Moscoso was no better than that of Ernesto Perez Balladares with regards to corruption, and in many cases it was worse.   

RICHMOND, Va. (AP) A Virginia Beach man has pleaded guilty in federal court to bribing Panamanian government officials to obtain contracts for maintenance of lighthouses and buoys. John Warwick pleaded guilty Wednesday in Richmond to conspiring to make corrupt payments to foreign government officials. He faces up to five years in prison. According to prosecutors, the 64-year-old Warwick and 53-year-old Charles Jumet of Fluvanna County were executives of a Virginia Beach engineering firm and a Panamanian subsidiary. They allegedly paid more than $200,000 in bribes to secure $18 million in maritime contracts between 1997 and 2000. Jumet previously pleaded guilty to two charges. Both men will be sentenced March 26.   

Dámaso García, the Mayor of the District of Colón, told RPC Radio that political and economic interests are behind the accusations against him that seek to damage his administration. García delivered his remarks after the Electoral Tribunal decided to lift his political immunity, in order to attend the accusations against him. A former Justice of the Peace accuses him of arbitrariness related to the removal of some billboards. García responds that these persecutions are occurring because "the district of Colón has told the economic sectors that they should pay taxes to the Municipal government." (Source: Panama America)   

Within a period of five hours yesterday, Ana Matilde Gomez, who until recently was the Attorney General in Panama, received three notifications from the Supreme Court. The first came at 10:00 informing her that she had been suspended from office. The next came at 12:00 noon, informing her that her application to have the case reviewed by the Supreme Court had been rejected. And the third came at 3:30 pm to notify her that her appeal (in relation to the previous action) had not been admitted. The court did not even wait for Gomez to sustain the announced actions. By 5:00 pm yesterday afternoon the office of the Attorney General of the Republic had already been handed over to Giuseppe Bonissi, whom the executive had appointed as the "Replacement Attorney General" - a position that was eliminated with the constitutional reforms of 2004. (Source: La Prensa)   

The Former Minister of Education Belgis Castro was released from the El Renacer prison this afternoon. Castro has been detained since August 2009 as part of the investigation against him for alleged corruption and embezzlement related to the removal of fiberglass insulation from public schools. Castro left the prison in a green Toyota Prado driven by his son. The former government official was able to obtain his freedom after the Second Superior Tribunal of Panama granted him an interim measure other than preventive detention. According to a press release, Castro has to report to the court every Friday. While the Second Superior Tribunal of Panama made their decision, at the same time the lawyers defending Castro obtained a bail bond for $150,000 as part of the process being heard in the Eleventh Criminal Circuit Court of Panama. The decision of the Superior Tribunal of Panama is related to the criminal case for alleged irregularities in the removal of fiberglass insulation from public schools located in the Eastern part of the province of Panama, said the press release from the Judiciary. These anomalies occurred between 1 January 2004 and 30 April 2008 as revealed by an audit performed by the Comptroller General of the Republic.   

The Electoral Prosecutor Boris Barrios resigned his post today. The reasons for his decision are not known. Barrios, who was appointed in 2008 during the administration of Martín Torrijos for 10 years, leaves office amid an investigation of his performance when he was the First Notary of Panama. The governor of Panama, Mayín Correa, announced this week that she had ordered an audit of all of the Notary Publics in the province of Panama due to the possible commission of crimes of fraud and embezzlement by those who exercised these posts during the past administration. (Source: La Prensa)

Editor's Comment: Damn, it's a two-fer! Today Ana Matilde Gomez will be officially notified of the Supreme Court's decision to separate her from her office as the Attorney General of Panama, and now with this resignation of Boris Barrios, Panamanian president Ricardo Martinelli will be able to appoint a person to fill the important position of Electoral Prosecutor. This is the person who investigates things such as electoral fraud and anything having to do with politics and elections. There is also an Electoral Tribunal made up of three judges who decide the cases. This is an important position for Martinelli to have locked up. Boris Barrios probably quit because he knows what Mayín Correa will turn up in the audit of the First Notary of Panama, so he's running for cover while he can. Another way to look at this - the PRD loses one more soldier to the Ricardo Martinelli Purge of 2009 - 2010.   

The president of Panama Ricardo Martinelli urgently called for an audit of those responsible for Carnival 2009 in Panama City, where allegedly several million dollars of public funds were spent on the festivities. The President, who mentioned the name of Mingtoy Giro, who served as the President of the Carnival Board, said he expects the Comptroller General of the Republic to investigate where the how the millions of dollars given to the Carnival Board of Directors by Martin Torrijos was spent. Martinelli said he does not think that state funds should spent on holidays, because no one is accountable for these funds and the benefits that are supposedly returned to the community. Meanwhile, Giro said she does not fear and audit. (Source: La Critica)

Editor's Comment: Another scandal. Another investigation. More theft, fraud, and embezzlement. Another audit. Ho-hum. Well, it sure is monotonous, but I guess it has to be done. I'm just glad this administration is willing to keep going after those who stole all of that money during the PRD's last five years. That is of course assuming part of the money was misspent, which is probably a fairly safe assumption, just judging on past performance. Mingtoy Giro was also the person charged with the safekeeping of a bunch of statues paid for by the administration of Mireya Moscoso. They were taken from the Parque Omar and sold for scrap. You have to understand something - the PRD literally hates anything that reminds them of the Panameñista's and vice-versa. It's visceral.   

"I think we're going to put some officials in prison. Notaries don't know it's a crime to take protocol files home?" said the Governor of Panama, Mayín Correa. She stated that when conducting audits of these entities, as the law requires them to do during the last weeks of January, she became aware of these irregularities. Correa said Notaries must turn over to the person who replaces them, which occurs every five years, all protocol files in order, safely stored, so they can be identified. "But in some cases we found that the person who is leaving office left the protocol files improperly organized, and others simply took them home," she said. She said she has already given ten days to those notaries who are involved in these cases to return the documents. Otherwise she will proceed to lodge a formal complaint. At the same time, she said "to become a notary in this country is big business, and some of them are pulling in as much as $40,000 dollars per month." (Source: TVN Noticias)

Editor's Comment: The Governors of each province appoint the people who will serve as notaries during their five-year administration. As the Governor of the Province of Panama, Mayín Correa obviously has the largest number of Notaries in her province by far. The notaries provide the service of making common documents "official" for use in legal proceedings, among other tasks. And of course there is a fee associated with everything they do. They make a hell of a lot of money and it's a good gig if you can get it. Everyone I know has their "favorite" notary that they use to get stuff done. And of course I'm not surprised at all to learn there are "irregularities" in some of these offices, most of which have been occupied by people associated with the PRD since January 2005.   

Panama's Anti Corruption Czar, Fernando Núñez Fábrega, presented a complaint before the Public Ministry against two advisors to the Ministry of Public Works, who in the previous administration of Martin Torrijos authorized tax exemptions to companies worth more than $1.7 million dollars. The complaint names Melina Cano Achurra and her brother Saturnino Flores Achurra for allegedly committing crimes against the public faith, public administration and collective security. Cano Achurra worked as the Regional Administrator of Revenue for the province of Panamá and authorized tax exemptions for 13 farms that, supposedly, are engaged in agricultural activities and tourism. Meanwhile, her brother helped with the processing of exemptions for five farms in the province of Herrera. The rest were exempted from having to pay property taxes under the protection of supposedly being tourist activities, despite not being registered in the National Register of Tourism.

Editor's Comment: I've been waiting for something to be done against the MOP. During the administration of Martin Torrijos the vast majority of the money was spend on large infrastructure projects such as the extension of the Northern Corridor to Colon and the Coastal Strip, among others. For every large project there were hundreds if not thousands of small projects planned and executed all around the country - to build or repair roads mostly. This complaint which revolves around $1.7 million dollars for tax exemptions is really just one rain drop in a downpour - in the grand scheme of things it's nothing. I expect that in November 2010 when Panama is no longer a member of the Central American Parliament and Martin Torrijos loses his immunity from prosecution, then all of a sudden we're going to be talking about the MOP and large infrastructure projects a whole lot more. Remember, PARLACEN = Martin Torrijos. Slot Machines = Ernesto Perez Balladares. CEMIS = Balbina Herrera. FIS = Pedro Miguel Gonzalez. There's a reason for doing everything, and when it's all said and done there won't be a single person in the PRD left standing with any name recognition whatsoever, and all of those who do have any kind of public face or presence will be heartily defending themselves from prosecution for embezzlement, money laundering, or what have you. And in the midst of all of this prosecutorial action against the PRD, a plot to kill or kidnap the President emerges in Panama. Any wonder as to why?   

National Assembly Deputy José Muñoz filed a civil suit against López Consultores today, the company that conducted and audit and produced a report for the Social Investment Fund (FIS), which is linked to a corruption scandal involving Deputies from both the ruling and opposition political parties. Muñoz told RPC radio the lawsuit he filed was in the amount of $500,000 dollars. Muñoz said he would waid for the results of the audit being conducted by the Comptroller General of the Republic that is being conducted in this case, in order to use it to file a criminal complaint later. La Prensa revealed last week that the report from López Consultores reflects a misappropriation of some $12 million dollars in state funds. (Source: La Prensa)

Editor's Comment: National Assembly Deputy José Muñoz belongs to Ricardo Martinelli's Cambio Democratico political party, and he is actually the ranking party member in the National Assembly. He is currently the President of the powerful Budget Committee.   

"This is the third time he's been investigated for the same event," said Carlos Carrillo, a lawyer who is part of the legal defense of former Panamanian president Ernesto Perez Balladares, in speaking about the case against the former president which keeps him under house arrest. Perez Balladares has been indicted for alleged money laundering, a fact Carrillo scored as political and judicial persecution. He said that given the lack of due process, and that the authorities are not respecting the legal guarantees of Perez Balladares, his lawyers are contemplating the possibility of internationalizing the case, however they will first try to exhaust all internal resources, said Carrillo, who participated in the morning edition of Telemetro Reporta. (Source: Kathyria Caicedo for Telemetro Reporta)

Editor's Comment: When Carrillo speaks of "internationalizing" the case, he means making some kind of a petition or complaint before the International Court of Human Rights or something like that. I wonder what Carrillo is talking about when he says this is the third time he's been investigated for the same event. I don't think the prosecutors had the solid banking information and money trail which supposedly clearly shows how Perez Balladares has been receiving kickbacks for years for the casino and gambling concessions. I'm no lawyer, but if new information comes to light then you can reopen a case, right? My take on this statement made by defense lawyers for Perez Balladares is that they are thinking there's no way he gets off in Panama, so they will probably have to take their argument somewhere else. How about France?    

Panama president Ricardo Martinelli suddenly decided last night to terminate the Social Investment Fund (FIS) within six months. "We will open a transparent institution that has all of the regulations and controls necessary to protect the money of the Panamanian people," said the president through a press release, just as the scandal in the country about the economic activities of this government institution is at the center of the worst crisis of this administration since July when Ricardo Martinelli came to power. As for the scandalous cases of alleged corruption, the President left the matter to the Comptroller General of the Republic. "It's up to the Comptroller to conduct a deep audit in order to clarify what has been published in the media." (Source: ALEXIS CHARRIS PALACIOS for La Estrella)    

Panama's Second Circuit Criminal Court (Second Judicial Circuit of Panama), ordered the suspension of the main hearing, in the process following former prosecutor Archimedes Sáez and Carlos Smith Coba for the alleged crime of extortion. The hearing, scheduled for tomorrow, Tuesday 26 January, will not be performed, because the case file is still in the Second Superior Tribunal to resolve an appeal filed by defense lawyers working for Saez. (Source: TVN Noticias)

Editor's Comment: Archimedes Sáez is the former prosecutor who was caught red handed (on tape) demanding money in return for not ordering a woman who was in jail in La Chorrera to be transferred to the woman's prison in Panama City. Her family members wanter her to remain in La Chorrera, where it would be much easier for them to visit her and to provide her with food and other outside logistical support. When Sáez demanded money from the family members in order to keep the woman in La Chorrera, they complained to the Public Ministry. Attorney General Ana Matilde Gomez ordered Sáez's cell phone calls to be recorded, and when he did in fact end up on tape demanding money and using his position to extort these people, Ana Matilde Gomez fired him. He then turned it around and now Ana Matilde Gomez is being investigated for the supposed abuse of authority, and for that she might be removed from her position. This article has to do with the court hearing in the criminal charges that remain pending against Archimedes Sáez and Carlos Smith Coba in the original case, which has yet to be decided.   

The Deputies to Panama's National Assembly mentioned in the audit of the Social Investment Fund (FIS) prepared by Consultores López will be investigated by the Supreme Court, after lawyer Iván Montalvo submitted a complaint. Given the alleged commission of the offense of crimes against the public administration, Judge Harley James Mitchell will be the rapporteur of the summary on this case. Lawyer Iván Montalvo filed the criminal complaint with the Second Anti Corruption Prosecutor, however because the complaint involves Deputies to the National Assembly, the case was remanded to the Supreme Court. (Source: Kathyria Caicedo for Telemetro Reporta)

Editor's Comment: When the FIS failed to pay Consultores López the $44,000 dollars they were owed for having conducted this audit, someone leaked a copy of the report to La Prensa. The Director of the FIS and the government of Ricardo Martinelli scrambled to play catch-up last week, and everyone pointed to the new Comptroller General of the Republic, the woman who was the primary accountant for all of Ricardo Martinelli's businesses, to conduct an official audit of the FIS. All of the lawmakers who used FIS funds (which means, all of them) are now scrambling to appear on television with boxes of documents supposedly showing how the money they got from the FIS was well spent. Those who did not steal any money probably don't have anything to be afraid of. Those who did in fact steal money should go to friggin' jail. And, they are all scared shitless so what does that tell you?   

The president of the Association of Business Executives (APEDE), Rubén Castillo, said the mishandling of public funds should be investigated until the ultimate consequences and the Panamanian people should be informed. "I feel we are on the right track, now that the Comptroller General of the Republic will conduct the procedure that should be followed, which is an audit," he said. He noted this situation is generating controversy due to the involvement of the Deputies of the National Assembly, but the investigations will have to be very rigorous so that the truth comes to the light of day. He said any government institution should handle public funds properly. Castillo's statements were made in reference to the multi million dollar mishandling of money from the Social Investment Fund (FIS). (Source: Panama America)   

He broke the silence. President Ricardo Martinelli finally spoke about the controversial case of alleged misappropriation of money from the Social Investment Fund. The president said that the comptroller is conducting a comprehensive audit, but the public should wait for them to do their work. According to Martinelli, you can't think about doing anything based on "insinuations" made by a company that was "not authorized to do what they did." The president said the Social Investment Fund should be handled in a transparent manner. (Source: Kathyria Caicedo for Telemetro)    

While inspectors from the office of the Comptroller General of the Republic took control of the Social Investment Fund (FIS) offices yesterday, the Auxiliary Bishop of Panama, José Domingo Ulloa, called upon the authorities to investigate the whereabouts of $1,394,247 dollars that were paid in the name of the Monastery of the Visitation of Holy Mary. Irregularities were found in this case not only by the independent external auditor contracted by the FIS, but so did the Comptroller in 2008. "It is unfortunate that a religious institution is in the middle of this situation. The case must be cleared by the authorities to identify those responsible," said Ulloa. The priest explained that when the Church receives donations for social projects, they administer the money themselves and they make reports on how the funds were invested. "This is how it has always been done," he said. The bishop's statements came after La Prensa revealed that several checks that were issued by the FIS in the name of that monastery, between 2000 and 2004, were never given to the Catholic congregation. This case is also being investigated by the Public Ministry. In addition, yesterday the Comptroller sent ten auditors to the FIS to verify the irregularities noted by López Consultores, the private outside third-party auditors hired by Giacomo Tamburrelli.

Fábrega's driver received $426,000 from the FIS - The driver for PRD Nation Assembly Deputy José Luis Fábrega received $426,000 dollars in contracts from the Social Investment Fund (FIS), from between 2006 and 2009. The information comes from official checks included in the external audit report ordered by FIS Director, Giacomo Tamburrelli, as soon as he took office. Fábrega is also linked to a company that from 2006 to 2009 did business with the FIS for more than $1.4 million dollars. The company was dissolved 72 hours ago, just as the FIS audit came to light. Fábrega accepted that he created the company, but said he sold before it became a provider for the FIS. (Source: La Prensa)

Editor's Comment: Panama City is practically vibrating today as this FIS scandal grows and takes shape. It will probably take years, but there's a good possibility that a whole string of former lawmakers could eventually end up in prison. Personally I think this whole thing as one primary target - Pedro Miguel Gonzalez. He was the President of the National Assembly and Martinelli would probably love to see him thrown in jail. OK, we start off with a couple of ex-Ministers and a former Municipal Engineer to break the ice (check.) Then we use this whole gambling kickback thing to take down Ernesto Perez Balladares (check.) If we get out of the PARLACEN then we can go after Martin Torrijos, and that will happen in November 2010 (check.) Get the Supreme Court to reopen the CEMIS case and we can use that to sink Balbina Herrera (check.) OK, who's next. Great - there was all kinds of corruption in the FIS, so let's use that to get to Pedro Miguel Gonzalez (check.) NEXT! Take a number. Plenty of prosecutors, no waiting...    

The President of Panama's National Assembly, Jose Luis Varela, said due to stories appearing in local newspapers this week about a multi million dollar embezzlement of money from the Social Investment Fund (FIS), he has asked the Comptroller General of the Republic to promptly initiate an audit of the FIS. "The FIS is an entity used by municipalities, lawmakers, local representatives, mayors, and the Executive Branch to execute projects for the benefit of communities in the country," he said. He said he questions the validity of the report produced by the company López Consultores, which is why he is asking the Comptroller to conduct and audit and for that audit to be as transparent as possible. "No member of the National Assemvly, representative, or mayor can be above the law and if someone committed an irregular act then the full weight of the law should fall upon them," he said. He also said that if there is a shortfall (meaning, if funds are missing or have been misspent) then only the Comptroller General of the Republic can realize an audit that will have validity. He said in the report that he was able review last night, not only the 19 lawmakers who were mentioned in the press reports are indicated, but rather all 71 lawmakers who are currently members of the National Assembly as well as all 78 from the previous administration. (Source: Panama America)

Editor's Comment: Good point. This outside private company was hired to conduct an external audit and they found some irregularities. Now, it falls to the Comptroller General of the Republic to conduct an official review and audit, and the results of that audit can have substantial legal implications. It would be hard if not impossible for the Director of the FIS to initiate legal proceedings against sitting Deputies of the National Assembly armed only with information generated by an "outsider" company like López Consultores. The Comptroller on the other hand has far reaching powers to investigate this kind of thing throughly, and the results could be used to throw people out of the National Assembly, if they are found to have abused FIS funds for their own personal gain. I suppose this is exactly the argument being made by the Director of the FIS as an explanation of why he didn't go running to prosecutors as soon as the initial report turned up irregularities. And do you want to know who's probably the most guilty? Watch to see who's defending themselves the loudest...   

Since the dismissal of more than a dozen officials from the Social Investment Fund (FIS), the entity has been the focus of public opinion, especially considering the possibility that some irregularities have been detected in the approval of items worth millions of dollars. In this morning's edition of Telemetro Reporta, Judy Meana, the spokeswoman for the National Government, said it was public knowledge that Giacomo Tamburelli, director of the FIS, had ordered an external audit within the institution. However, reports indicate this audit was not submitted to judicial authorities, although some cases were detected indicating wrongdoing on the part of Deputies of the National Assembly and other officials from the administrations of Mireya Moscoso and Martin Torrijos. Meana added that Tamburelli "for the health of the audit, could not reveal the details," and the only thing that remained was for the Comptroller to participate in the process. Meana said former Comprtoller Carlos Vallarino ordered the investigation days before leaving office. She said that now it will be up to the new comptroller, Gioconda de Bianchini, to investigate the case and to send it to the appropriate authorities. (Source: Kathyria Caicedo for Telemetro Reporta)

Editor's Comment: No matter how you try to paint this with a happy face, the fact of the matter is that the Director of the FIS sat on this report for three months. This entire scandal only came to light once the report was leaked to the press. The people who were fired from the FIS were only fired because the report was leaked. Who was being protected and why? (Rhetorical question). The former Comptroller Carlos Vallarino only ordered an investigation once he had one foot out of the door. Why didn't he order the investigation months if no years earlier? I hope this case turns into another twenty dudes or so locked up in the El Renacer prison, all with the titles of "former lawmaker" or whatever they used to be. And why didn't the Director of the FIS jump on this with both feet? Read carefully. Every report says the 19 lawmakers involved were from the "former administrations of Mireya Moscoso and Martin Torrijos." I'll bet they didn't want to slam the guys who were in the National Assembly under Mireya Moscoso because they are friends to this administration and the director of the FIS. If that's the case, then it's bullshit.   

Perhaps the darker side of politics is summed up in the 900 page report the Director of the Social Investment Fund (FIS), Giacomo Tamburrelli, has tucked away in his desk. The report lays bare the mechanism used by the Deputies of the National Assembly during the administrations of Mireya Moscoso and Martin Torrijos to divert resources that were supposed to be spent for social assistance. La Prensa had access to an audit conducted in the FIS carried out between July and November 2009 - revealing multi million dollar embezzlements involving at least 19 National Assembly Deputies, from both the political parties currently in power (such as the Cambio Democratico, Panameñistas, Molirena) as well as the opposition Partido Revolucionario Democratico (PRD). Fictitious lists of social assistance, inflated prices for food, purchases of equipment and machinery that is now missing, payments for sporting equipment that was never delivered, and payments for construction projects that were never completed are just some of the anomalies contained in external audit ordered by the government of Ricardo Martinelli shortly after coming to power. The auditors from the firm López Consultores found, after analyzing purchase orders, contracts, checks, bank accounts and other documents of the Social Assistance Program, that the majority of the resources requested by the members of the National Assembly which were supposed to be donated to their communities ended up in their own pockets, or were used to finance their political campaigns. The total amount embezzled reaches $12 million dollars.

The results of outside audit - contracted by the Director of the FIS in July 2009 - were delivered to Tamburrelli last October. But instead of presenting a complaint and making the contents of the audit public, Tamburrelli ordered the document to be filed away. During an interview with La Prensa, the Director of the FIS refused to provide details of the scope of the audit. Despite his refusal, La Prensa obtained a copy of the audit report and conducted its own investigation lasting two months. After the audit was leaked to the press, the fury of the FIS Director went to his right-hand man, Ernesto Moro, and in mid-December Tamburrelli fired him together with another 30 people who used to work for the FIS. All of those who were fired were escorted from the offices of the FIS by agents from the Institutional Protection Service (SPI). Tamburrelli's reaction was the opposite of what he promised when he announced the contract to conduct an external audit. In July 2009 he said: "we promise that we will reveal the results, the irregularities, and the names of the companies." But his promise remained just a promise. Tamburrelli allowed the current Deputies in the National Assembly to continue to operate under the same scheme which started under the administration of Mireya Moscoso (1999-2004) and continued during the administration of Martin Torrijos (2004-2009). (Source: La Prensa)   

By DON WINNER for Panama-Guide.com - It seems like all of the news that matters lately in Panama has something to do with corruption. A new complaint, someone defending themselves, their lawyers making public statements on their behalf, a court decision saying some former official has to got to jail, etc. It's getting pretty monotonous to cover this stuff, but there's not much else going on right now. All of this activity actually represents the start of a fundamental shift in the way things are done in Panama among the ruling political elite. I even suspect the most recent story about an "attempt" against Panamanian president Ricardo Martinelli is more about his efforts to make a change, which are upsetting the apple cart among the established power brokers in town. I would not be surprised at all if this story eventually winds out as an assassination attempt rather than a kidnapping. There's way too much in the story so far that simply doesn't make any sense. Anyway, for now it's corruption, corruption, and more corruption. Let the criminal accusations fly and the chips fall where they may.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.    

Panama's Anti Corruption Czar, Fernando Núñez Fábrega, filed a complaint before the Public Ministry against the former Administrator of the Community Development Program (PRODEC), Julio Aizprúa Godoy, and the former PRODEC Coordinator, César Augusto Loré Ortega, for alleged damages to the state totaling $383,200 dollars. Núñez Fábrega said there are apparent irregularities in payments to contractors charged with inspecting the projects promoted by PRODEC. He said Aizprúa and Lore authorized payments without verifying that the work had actually been performed. Among the alleged irregularities contained in the complain are; there were no orders to proceed, contracts show inspections were done before they were signed, and that contractors were preselected. Also, in some cases bills were presented on the same day that contracts were signed. He explained that two contracts consisted of 30 projects each, for the construction of schools, a health center, and road work in the provinces of Veraguas and Coclé. (Source: Georgina Damián for the Panama America)   

The defense lawyer for former Panamanian Education Minister Salvador Rodríguez said today on TVN Channel 2 news that Rodriguez's arrest is nothing more than an administrative failure of the Ministry of Education. Victor Almengor, Rodriguez's lawyer, explained the law for public procurement law states if the contractor has failed to comply with his responsibilities, then the performance bond should be implemented. But in the case of contracts for the removal of fiberglass insulation from schools the Ministry of Education has not done so, and rather they have chosen to prosecute his client. Almengor insisted there is no evidence indicating Rodriguez had committed a crime. (Source: ABDIEL AUGUSTO PATINO for La Estrella)

Editor's Comment: Here's one for you. How about the fact that fiberglass insulation is not a hazardous material, and there's no need to pay contractors huge amounts of money to remove it in the first place. Back on 28 April 2008, now almost two years ago, I published two articles about this entire fiberglass removal scam, the first entitled "Fiberglass in Schools - Scandal and Debate Continues", and the second "More On the Bogus Fiberglass Scare (My Dad is a friggin' genius...)." The thrust of those articles was - "Personally, I think this entire debate over the use of fiberglass insulation is little more than a pork-barrel project. Want to "earn" a bunch of money from the government? Create a problem and then get hired to clean it up." And that was right on the money. These guys first created the problem, then they used the parents and the teachers at the schools to stir up the (ignorant) public even more by protesting over the (created) fiberglass problem, then once the contracts were let and the money was handed over, everyone just took their kickbacks and walked. This entire scandal was pure fabrication, and the only thing they wanted to do was create a problem so they could steal the money allocated to supposedly clean up the problem they created. They knew what they were doing from day one. And, so did I, about two years ago. They are fooling no one.   

Panama's Anti Corruption Czar Fernando Núñez Fábrega said this morning that computers were stolen from the offices of the National Council of Transparency Against Corruption. Núñez Fábrega reported on the TVN Channel 2 morning news broadcast the theft is clearly politically motivated to "protect someone who feels besieged by the Council's investigations." Núñez Fábrega said it was this person who sent someone to steal the material. The importance of this theft is that all of the confidential information related to the investigations their teams were conducting resided in those computers, said Núñez Fábrega. Nunez Fabrega emphasized that the person who entered the the offices of the National Council of Transparency against Corruption had "more skill than "Spider-Man." (Source: Manuel Vega Loo for La Prensa)

Editor's Comment: Hopefully Fernando Núñez Fábrega's staff had good off-site backups of their most important information, but in fact I doubt it. In Panama generally speaking governmental offices are woefully behind when it comes to information technology, and particularly in the field of information security. Meaning, for the most part government workers are just happy to be using a computer rather than a typewriter and carbon paper - Panama is only about one step into the information age. There's a need for offsite secure data storage and maybe this incident will help the government to wakeup to the need. For this kind of stuff, it always feels like you're throwing your money away until you really, really need it. You know, like an insurance policy.    

Former President Martín Torrijos came to the fore on Saturday and asked for their constitutional rights of former Education Minister Salvador Rodríguez, who is in custody, to be respected. Torrijos said that all democracies have to be sustained within a state of law, which is why he said justice will be served for his former minister, who received special permission to attend his father's funeral. The former president said that without doubt they can investigate, but all of his rights should be respected. Salvador Rodriguez remains prison due to the investigations pending against him for the alleged misuse of state funds. (Source: TVN Noticias)

Editor's Comment: Weak. There's little the PRD or Martin Torrijos can do when faced with questions about guys like Belgis Castro, Salvador Rodriguez, Jaime Salas, or Ernesto Perez Balladares. The best they can come up with is "their rights should be respected." News Flash! These guys are getting more "respect" than the rest of the citizens of Panama, with the Supreme Court having to stop what they are doing to hear endless "preventative" requests for "habeas corpus" or whatever else, bogus legal maneuvers used by their lawyers to create smoke, slow down the process, or to turn the tables back on the members of the Public Ministry who are investigating them. Ana Matilde Gomez is a risk of being removed from her position as Panama's Attorney General, because she caught a corrupt prosecutor on tape using his power and influence to squeeze money out of a poor family - making them pay thousands of dollars or he would have their daughter transferred to the Women's Prison where it would be much more difficult for them to visit and to bring her food and basic hygiene supplies. In effect, the guilty guy (who was caught red-handed) has turned the tables. Now Perez Balladares' defense lawyers intend to file a complaint against the prosecutor who is investigating him, alleging "abuse of power." This, from the guy who abused his own power while president of Panama to sell off millions of dollars worth of state owned assets and resources to the highest bidder, taking bribes from all. None of these guys get any sympathy from me, and their calls of "respect my rights" ring hollow. The PRD remains in free-fall, and we might be witnessing the slow death of a political party right before our very eyes.   

After being granted provisional permission, former Education Minister Salvador Rodríguez went to the province of Chiriqui to attend the funeral of his father, José Arsenio Rodríguez, who died the morning of Jan. 15. The ceremony was held at the Del Carmen Church of David, which was also attended by former President, Martín Torrijos Espino. Rodriguez, who faces charges for alleged crimes against public administration, highlighted the work of his father in education and in the area of social communication. Jose Arsenio Rodriguez was highly regarded in the Chiriqui province, where he worked for many years at Radio Chiriqui. Upon completion of the ceremony the former minister had to return to the El Renacer Penitentiary, where he remains in detention. (Source: Telemetro)