Francia
is in mourning
PENDING FOR DEFINING MINIMUM WAGE
CHOICE OF JUDGES OF THE SUPREME COURT
ISNN 1726-0485 EDICIÓN NOV. 15
rbc.com.pa
Editorial Board
Contributors to this edition José Javier Rivera J. Rafael Fernández Lara Giovana del C. Miranda G.
José Javier Rivera J. Giovana del C. Miranda G.
Pascal Forget Yhestryll McCree Maybé Mendieta Dayra Castañedas Ailen Galván Albin Rodríguez Alexander Canto
Portada y Diagramación: Virginia Medina
Jonathan Forget Mariela de Sanjur
Fotografía: Mariela De Sedas de Sanjur
Nadia Chang
ÁREAS DE PRÁCTICA IMPUESTOS - CONTRATACIÓN PÚBLICA - PROPIEDAD INTELECTUAL REGISTRO SANITARIO LITIGIOS, ARBITRAJE Y MEDIACIÓN DERECHO MARÍTIMO - ABANDERAMIENTO DE NAVES - DERECHO LABORAL ASUNTOS MIGRATORIOS - SOCIEDADES - APERTURA DE NEGOCIOS FUNDACIONES DE INTERÉS PRIVADO - CONTRATOS, FIDEICOMISOS ASESORÍA BURSÁTIL - SERVICIOS NOTARIALES Y REGISTRO - AMBIENTAL LEYES ANTIMONOPOLIOS TELECOMUNICACIONES
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CONTENT 6. 8. 10. 14. 16. 20. 21. 21.
22. 22. 22. 23. 25. 25.
EDITORIAL SOME THOUGHTS ON THE CHOICE OF TWO JUDGES TO SUPREME COURT
INVITED WRITER WHY THE TERRORIST ATTEMPTS HAPPENED IN PARIS?
NORMS OF INTEREST THE V CENTRAL AMERICAN CONVENTION OF ARBITRATION CENTERS TRANSFER PRICING A NEW CLAIM OF TAX ADMINISTRATION NEW OBLIGATIONS WITH MONEY LAUNDERING LAW WHAT SHOULD WE DO THE LAWYERS? OUTDOOR ADVERTISING IN THE DISTRICT OF PANAMA IS REGULATED ENTRY INTO FORCE EXTEND PERFUMES HEALTH PERMISSION PROCEDURE FOR MEMBERSHIP OF MUSICIANS, ARTISTS AND PROFESSIONALS IN MIGRATION NATIONAL COMMISSION OF SURE HOSPITALS OPPOSITE TO DISASTERS INCENTIVES FOR THE HELLENIC MERCHANT FLEET LABOR ISSUES METRO LINE TWO IS SERVING IN SPECIAL ADDRESS
CONSULT DOCTRINE & JURISPRUDENCE NO CONFLICTING STANDARDS IN CIVIL AND TAX CODE CONCERNING DISSOLUTION OF COMPANIES FULL OF SUPREME COURT DECIDES CONSTITUTIONAL CLAIM BROUGHT AGAINST THE DECREE NO.30 OF 22 FEBRUARY 2011, WHICH RATIFIED THE COMMITMENT OF NATIONAL GOVERNMENT WITH INDIGENOUS PEOPLE IN NGÄBE BUGLE RESERVE
POLITICS
THE UNIQUE CANDIDATES IN PANAMANIAN PRESIDENTIAL ELECTIONS
CONTENT 31. 34.
36. 39.
40. 42. 43. 45.
48. 50. 51. 53. 55. 59.
PANAMANIAN ECONOMY MINIMUM WAGE PENDING FOR DEFINING CONSUMER’S PRICE INDEX MAIN ECONOMIC INDICATORS MONTHLY: JANUARY-SEPTEMBER 2014-15 COMMENTS WORLD BANK HIGHLIGHTS ACHIEVEMENTS OF PANAMA AND REITERATES ITS SUPPORT
WORLD ECONOMY MIGRATION: A GLOBAL ISSUE REQUIRING A GLOBAL SOLUTION ECLAC SPECIALISTS ANALIZE RESILIENCE IN THE REGION OF CLIMATE CHANGE ON THE EVE OF THE PARIS COP21 UN LAUNCHES INTERNATIONAL YEAR OF VEGETABLES: LEADERSHIP FOR BEANS, LENTILS AND CHICKPEAS REDUCE INEQUALITY AND FUND EDUCATION ARE STILL KEY CHALLENGES, SAYS OECD
ENVIRONMENTAL CAPSULE PRESENTATION OF STUDY: “ZERO EMISSIONS IN 2050 IN LATIN AMERICA AND THE CARIBBEAN”
EDUCATIONAL CAPSULE THE NATIONAL HOLIDAYS
ILLUSTRIOUS PANAMANIAN RUBÉN DARÍO CARLES GRIMALDO “CHINCHORRO”
FASHION
SPORTS CAPSULE CULTURAL CAPSULE
EDITORIAL SOME THOUGHTS ON THE CHOICE OF TWO JUDGES TO SUPREME COURT
F
or several months, the public and other unions have been attentive to the appointment of two judges who fulfill this delicate task of administering justice at the Civil and Contentious-Administrative Chamber. This concern is supported by a perceived propensity of leaders of surrounding with supporters, friends and delegates from spheres of power, which has an impact specified in growing weakness of this body of public power. I have read carefully the interesting conference that gave the lawyer Sir Jeffrey Jowell QC at University of Panama, November 14, 2013, under title “The appointment and accountability of judges”, published in book Cesar Quintero Correa (1916-2003) Tribute Book. According to this researcher, a growing number of countries that have replaced the system of appointment of such judges by executive body for intervention of independent commissions composed of judges, lawyers, academics and representatives of the legislature. In Panama, at this time has been built into process of culling of judges, an interesting system, which keeps the appointment of these officials by executive body, as provided by Constitution, but admitting that an interagency committee and others professional, and community to select a short list between now and interview candidates and submit to examinations of seeded. This process has been disclosed on state te-
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José Javier Rivera - Attorney jj.rivera@rbc.com.pa
levision and has also been discussed in other media. In reviewing list of professionals who aspire to the highest office in the judiciary, it’s observed that for the first time, appear representatives of judiciary and Public Ministry itself. Also part of this short list freelancers and some officials at Executive Body. I want to mention, that called my attention the decision of Bar Association separated from examining Commission, based on its disagreement aspiring judges have been subjected to interviews by MOVIN, since a charge of this importance It requires greater scrutiny for Executive Branch to select a person who will remain in office for a decade.
EDITORIAL Getting into characteristics that should prevail when choosing these judges should be noted that not only professional competence is required to assume its primary responsibility as a member of the respective room, but it is essential that every judge knows issues of law constitutional, particularly those pertaining to warnings of unconstitutionality claims of unconstitutionality, human rights, protections of constitutional guarantees and adversarial criminal justice system, habeas data, habeas corpus, among others. In the same vein, knowledge extends to rules of international treaties and agreements such as:
- Universal Declaration of Human Rights of 1948. - American Declaration of Rights and Duties of Man of 1948.
- Convention on Rights of Child (Law 15 of November 6, 1990). - Convention on Prevention, Punishment and Eradication of Violence against Women “Convention of Belem do Para� (Law 12 of April 20, 1995). - Relative to the Fight against Discrimination in Education (Law 9 of 27 October 1976) Convention. - Inter-American Convention on Elimination of All Forms of Discrimination against Persons with Disabilities (Law 3 of 10 January 2001). - Convention to Prevent and Punish Acts of Terrorism Taking Form of Crimes Against Persons and Related Extortion that are of International Significance (Law No. 7 of October 29, 1979).
- International Covenant on Economic, Social and Cultural Rights (Law 13 of October 27, 1976). - International Covenant on Civil and Political Rights (Law 15 of October 28, 1976). - American Convention on Human Rights (Law 15 of October 28, 1977). - Convention against Torture and Other Cruel Inhuman or Degrading (Act 5 of June 16, 1987). - American Convention on Forced Disappearance (Law 32 of June 28, 1995). - International Convention on All Forms of Racial Discrimination (Law 49 of February 2, 1967).
Not applicable at a time of such importance to administration of justice, a partial charge or conflict of interest, that reduce possibility to act as judge in their respective Chamber dedication. Likewise, it requires great leadership and professional independence, to take on a task of administering justice objectively and attached to Constitution and law. There can be no political commitments let alone private professional representations of nature. We believe that this experience can lead to a system that has become a practice, even acquiring constitutional status when it reformed Constitution and the appointment of judges for life and consecrated by choice of an independent commission. L&E It will dawn and see...
INVITED WRITER WHY THE TERRORIST ATTEMPTS HAPPENED IN PARIS?
L
Pascal Forget rbcweb@rbc.com.pa
orenzo Müller, French political analyst, considers the ments to justify the slaughter politicians are far from alone. causes mentioned led to attacks by members of the Islamic State, which plunged Paris into a night of terror. The attack was perpetrated “pointing aimed against Paris, capital of prostitution and obscenity, which bore French political analyst Lorenzo Müller believes that the cross (against Muslims) in Europe,” Islamic State in terrorist attacks on Friday in Paris “responded to two the statement which claimed simultaneous slaughter main reasons: role of France in the international arena of at least 127 people in a wave of bombings in France. and in fight against Islamic Army, and lack of integration Jihadist group refers explicitly to participaof many North Africans and Muslims here in France.” tion of France in the international alliance led by US, the fight in Syria. However, focus of the arMüller said to Marti Noticias journalist, Pedro Corzo, he guments has gone far beyond political issues. believes that “there is much resentment on part of this community against France, and that is a very favorable Paris is, for them, capital of vice, and therefore deground for extremists seeking to recruit people (suicide).” served the punishment of Allah is also why the “caHe said that, in his opinion, governments of left and right reful selection” of objectives. Two bars, a football have failed French integration of Muslim immigrants. stadium and centennial concert hall, Le Bataclan, one the most popular of French capital. “The policy pursued by various governments of left and right, hasn’t been very efficient at the end And if there’s a city where almost every street offers a source in terms of integration and acceptance by Mus- aesthetic enjoyment that is the French capital in the world. lim population, values of the Republic,” he said. So can attest the 60 million people who visit annually and French analyst also said that “there is no control will in footsteps of artists and intellectuals who chose to with Muslim community, with Muslims in Fran- live, many seeking freedom that they had in their countries. ce, which are very different. A Moroccan Muslim has nothing to do with an Algerian Muslim, who In fact, since time of Enlightenment Voltaire and also has nothing to do with a Pakistani Muslim. “ Denis Diderot, Paris has been the global benchMoreover, the Islamist group considers French capital a mark for freedom of thought. Also, protection center of vice and prostitution, contrary to Islam. Argu- against abuses of political and religious powers.
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INVITED WRITER Therefore, anything that can challenge more vigorously Isis medieval ideals of a city that is birthplace of feminism, film, freedom of expression, haute cuisine, sexual liberation, bohemian, the most radical art movements in the history of haute couture and modern intelligentsia. Isis knows that his worst enemy is not bombs that Russia, US and France itself released him from heaven. They are on contrary principles of French Revolution, beginning with equality among its citizens.
ma of Islamic extremists that a simple but revolutionary document precisely signed in Paris on August 25, 1789: Declaration of the Rights of Man and of Citizen. Therefore, blow on Friday was not against the great symbols of power, but against Parisians, those people who doesn’t let dictate creeds and that throw away tyrants.
After excruciating mourning these days, inhabitants of French capital awaits a major challenge, As a major contribution to society gala is being eleva- they will have to decide how far give up their liberted to supreme law that no person is above the other. ty for more security; ÂĄLa republique est en danger! L&E And nothing is more different from slavery dog-
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NORMS OF INTEREST THE V CENTRAL AMERICAN CONVENTION OF ARBITRATION CENTERS
S
Dayra Castañedas - attorney dayra.castanedas@rbc.com.pa
uccessfully was held CENTRAL AMERI- Liliana Sanchez, Center for Conflict Resolution CAN ARBITRATION CENTERS CONVENTION du- (Cescon), by its Director Yeritza Dier de Perez, reprering 19 and November 20, 2015, in San Jose, Costa Rica. senting referees for Panamanians, the lawyer Dayra Castañedas Lopez and the by lawyers Ausberto Rosas. The V Central American Convention of Arbi- Various groups address the issue of flexibility and intration Centers, was organized by the Center for formality in arbitrations, based on their experience and Conciliation and Arbitration of the Chamber of professional practice. The directors of various centers, Commerce of Costa Rica, with the theme “flexi- discussed regulations and changes that have been taken bility and informality in the arbitration process.” to ensure flexibility in different processes they manage. What it is the Convention consists of various ar- The Central panel of arbitrators, addressed the issue bitration centers of Central American countries as of flexibility and informality in arbitration from a diGuatemala, Honduras, El Salvador, Nicaragua, Cos- fferent approach, taking into account the position asta Rica and Panama and was aimed at practicing sumed by the referee to accept the position as such. lawyers, corporate consultants, officials and professionals related to methods dispute settlement. Before answering questions raised, I indicated that in Panama we have a new law on national and internatioIn this Central American meeting was attended by nal commercial arbitration court is having a monistic the heads of various centers that are part of this or- and adopting a series of innovations in line with modern ganization, arbitrators and lawyers from each coun- regulations adopted by recognized arbitration centers. try invited by different centers, who had with mis- It was stressed that CECAP and Cescon, have adapted sion to introduce participants to the situation of our their regulations to new arbitration law and that since countries from the perspective of each area of ac- August 2015, they apply to new arbitration proceedings. tion, sharing experiences in arbitrations conducted in countries of our region. It was also attended by in- It’s a fact that experiences in many years of process ternational experts and exhibitors illustrated partici- management, served to center directors, lawyers pants with interesting lectures to throughout the day. and arbitrators can propose changes and improvement of the arbitration law and adequacy arbitraThe Center for Conciliation and Arbitration of Pa- tion procedures, thus ensuring weighted flexibilinama (CECAP) was represented by its Director ty by experts as advantages of arbitration process.
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NORMS OF INTEREST I pointed out that as a referee and secretary in arbitration proceedings from 1990 to date, I have seen the evolution of arbitration practice has had in our country and that both Arbitration Centres with a joint work have been largely engines this positive development. It’s clear that the arbitration practice is not required for compliance with excessive formalities, as required in ordinary proceedings, taking into account the trend in international practice is to avoid excessive use of participants’ time, avoid litigation by lawyers and finish with rituals that dilate and cause costly processes. Asked
questions
and
their
answers.
–
1.- Is there flexibility in arbitration practice in your country? Yes, there is flexibility in the practice of domestic and international commercial arbitration in Panama. Law 131 of 2013, focused on updating legislation and adapt to modern trends to arbitration. This trend was welcomed by arbitration centers, who adapted their regulations to new law.
arbitral tribunal is empowered to order kidnappings, seizures of evidence and other measures if so requested. The law also allows this application to courts, if the court wasn’t constituted, or at any time during the process (art. 18 of Law 131). Referees have had to adapt their practice to changes in new legislation and for moment this practice has had positive effects on parties. In Panamanian Arbitration practice, proxies are allowed to sign resolutions, when one of referees outside the country. The use of electronic signatures and hearings via skype or telephone are also allowed. Under Article 45 and 46 of Law 131, parties are free to agree the procedure has been followed by arbitral tribunal in conducting proceedings, can undergo the procedure contained in a regulation of an arbitral institution. It is clear the rule which states that the absence of agreement, arbitral tribunal may, subject to provisions of the Act, conduct arbitration in the manner it deems appropriate and without recourse to procedural rules of arbitration. It being understood that standards aren’t our judicial code that applies in case of a vacuum on application of the rule of procedure.
Law 131 of 2013 in Article 6 refers to rules of interpretation and points out that questions relating to matters governed by law that are not settled in it are to be sett- In regard to that evidence, referees have the power to led in accordance with general principles of arbitration. determine admission exclusively, relevance and value of performance tests and to order at any time the presentaWith regard to notifications, we must in Article 8 of Law tion or performance of evidence as it deems necessary. 131, allows notifications are conducted via email or any Very often they are being made via skype and tesother similar means enabling the sending and receiving timonial evidence received statements and reports of letters and documents. This possibility brings an im- previously evacuated by parties. Often you hear staportant evolution in handling of cases and helps to pre- tements of parties, without limitations imposed by vent stagnation of cases, when parties refuse to personal the Code of Civil Procedure, where only the other notification or outside the country. This rule is moved to party may request statement of the other party. Art. 6 of Rules of Cescon and in art. 2 CECAP Regulations. The possibility of issuing partial awards In most cases it seeks to arbitrate parties to show their ap- and additional awards are also innovaproval to communications exchanged by parties and thus tions that the arbitration process more flexible. considered notified of applications and court decisions. All these issues were considered in recently approved Another innovation of Law 131 of 2013, is regard to Cescon CECAP and regulations, each as effective date interim measures and preliminary orders, so that an for implementation in new processes on 1 August 2015.
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NORMS OF INTEREST 2. Whether to adopt international practices and standards in practice of local arbitration.
case over civil judicial processes. I think yes, procedural rigidity can prevent the judge come to recognize the truth and taking a decision without having necessary elements for them, because it is limited in time and on time. The lack of immediacy limits their ability to evaluate the evidence and sound judgment is limited by assessment of the evidence when being valued.
It considers that if it’s appropriate, in Panama it’s achieving this flexibility. There is a large group of lawyers and arbitrators prepared for it. Clearly, this is achieved with participation of professionals in various conferences and seminars at national and international level are made. Article 6 of Law 131 mentio- 5. That flexibility is best achieved by institutional proned above, clearly states the desirability of adopting cesses or ad-hoc processes. international practices. This affects the ability of our country to attract other international arbitrations. From experience as a referee, I think that this flexibility is best achieved through institutionalized process whe3. What risks and opportunities that you would conre parties and court is aware of the existence of a disider adopting rules and principles of Arbitration rector who guard the court proceedings, who agrees to flexibility as opposed to more rigid or formalistic civil comply with Code of Ethics. This is also important that procedural rules. centers have lists of professionals who customarily participate in update seminars, ensuring that processes are Risks that would take the fact of flexibility principles are carried out by a person with knowledge of arbitration few. I describe them as well; (i) that trial attorney in ar- proceedings, which by its commercial nature, adapting bitration proceedings accept some flexibility and then every day demands of environment in which it operates. seeks to invoke grounds for annulment, for a different assessment of evidence or a different way to notify resolu- The convention concluded with the presentation of group tions; (ii) that Panamanian Court considers arbitrary or of lawyers, who discussed similar points, concluding that contrary to public policy or rules of the Code of Procedu- the issue should be subject of attention from lawyers who re and prosper some action for annulment. On the other want to participate in arbitration practice and also be hand sales of applying rules and principles of flexibility considered in curricula Central American universities. are many, for that is the trend of international practice. Finally we were all invited to the next convention will Arbitration Law Article 10 provides for Waiver of right be held in Panama City in October 2016, an event that to object and the same provision contemplate both will be organized by the CENTRE FOR CONFLICT regulations, CECAP in art.11 and Cescon in art. 11. RESOLUTION AND THE CENTRE FOR RECONCILIATION AND ARBITRATION OF PANAMA. L&E Parts feel treated in an equality plan, both have a similar time for preparation. They can reschedule hearings should have the parties or the court any problems that prevent them from reaching an audience. The extension of deadlines and terms agreement of parties. 4. Is there any advantage in distinguishing arbitration as a flexible process adapted to needs of parties and the
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NORMS OF INTEREST
NORMS OF INTEREST
TRANSFER PRICING A NEW CLAIM OF TAX ADMINISTRATION
T
yhestryll Mc Cree - Attorney yhestryll.mccree@rbc.com.pa
he DGI has launched audits of transfer pri- Scope of application ces, this is a challenge for both the tax authorities and taxpayers, as Panamanian legislation on trans- In Panama, according to Article 762-D of Tax Code fer pricing is new; It was introduced with Law 33 the scope of transfer pricing amounts to a taxpaof 2010 and was modified with Act 52 of 2012. yer any operation carried out with its related parties abroad, provided that such operations have effects Prices are understood to transfer price agreed in such as income, expenses or deductions determining transactions between related companies, in which tax base for income tax purposes, year or fiscal pegoods or services are transferred and can be diffe- riod in which they declare or carry out the operation. rent from those who had agreed independent parties. This is pursuant to Article 694 of the Tax Code, which establishes our principle of territoOur transfer pricing provisions are included in rial income system, in which only taxable incochapter adequacy rules of Treaties or Conven- me which occurs in the country is generated. tions for Avoidance of Double Taxation, under Articles 762-A to 762-N of Tax Code. The operations covered by Article 762-D, should be valued according to principle of free competition or known As for decrees regulating this matter, for now we have as arm’s length which states that the price or amount of Executive Decree No. 958 of August 7, 2013, howe- transactions shall be determined as if it had been agreed ver, there need to be other regulations in this area. between unrelated parties under similar circumstances. Thus, to justify transfer pricing, a comparison of Note that the Transfer Pricing Guidelines by the OECD conditions agreed in a competitive market betapproved, may be used as a technical reference, howe- ween independent enterprises, with those establisver, are criteria that can be used for these should be hed prices between related companies is required. published as a law through the Official Gazette, since Panama is not part of this international organization. Two or more operations are comparable when no differences between them significantly affecting the price or amount, and when such differences exist, be eliminated by reasonable accommodation.
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NORMS OF INTEREST The mission of experts in this field, consists in fin- Excesses ding acceptable price ranges and transfers comply with the criterion of length, rather than the promise The Tax Administration is at a time when its purof finding a single accurate, genuine and valid price. pose is to increase its revenue, which purpose has become a pressing need; This carries a risk for taxConsequently, to determine if these operations are payers subject to audits as necessary under this Admiin accordance with the principle of free competi- nistration has issued discretionary administrative detion, there are methods defined in the OECD guide- cisions on transfer pricing, which affect taxpayers who lines and which have been adopted in our Panama- are in this field such as multinational corporations . nian law in Article 762-F of Internal Revenue Code; These methods are comparable uncontrolled price, The Directorate General of Revenue is empowered to cost plus method, resale price method, utility par- issue acts according to what establishes the law, theretition method, net margin method of transaction. fore, must be objective regarding the request for documentation that requires the taxpayer during the audit process should apply to information depending on acObligations for taxpayers tivity of taxpayer, must also take into account that these In our country, including obligations for taxpayers who are novel processes for both themselves and taxpayers. fall within the scope of transfer pricing according to provisions of the Tax Code, it’s to present a report on trans- In the process of transfer pricing audit and in all processes fer pricing within 6 months after the end of fiscal period. that are heard in the DGI, we see needs to be a procedural balance between tax authorities and taxpayers, and that Furthermore, these taxpayers must have a trans- principles of procedural fairness are respected and good fer pricing study in which transactions with rela- faith especially that due process is guaranteed, so that taxted parties are valued, this study should be pro- payers can defend their position during the process. L&E vided only upon request of Tax Administration, within 45 working days from notification request. Importantly, by not presenting the report to DGI penalize taxpayer equal to 1% of total amount of operations with related parties, which may not exceed B/.1,000,000.00 fine. It should be noted by the non-submission of report of transfer pricing in the period specified by law, the Directorate General of Revenue, applying Article 756 of the Tax Code, which empowers it to apply a double penalty, as are a fine B/.1,000.00 to B/. 5000.00 and closing of commercial establishment, we consider excessive punishment, and to apply a sanction as closing of a commercial establishment of these thoughtful contributors to the economy of our country, in other countries application to closure it is considered an unconstitutional measure.
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NORMS OF INTEREST
NEW OBLIGATIONS WITH MONEY LAUNDERING LAW WHAT SHOULD WE DO THE LAWYERS?
T
he Administration for Supervision and Regulation of Non-Financial Subjects, is offering non-financial reporting entities under their supervision to make them aware of their obligations under new Law 23 of 27 April 2015 on Laundering training capital and its regulation by the Executive Decree No. 363 of August 13, 2015, as well as provide recommendations for good practice.
yhestryll Mc Cree - Attorney yhestryll.mccree@rbc.com.pa
2. Managing money, securities or other assets of the client. 3. Management of bank, savings or securities. 4. Organization of contributions or contributions for creation, operation or management of companies.
The Administration for Supervision and Regulation of Non-Financial Subjects, has issued se- 5. Creation, operation or management of legal persons veral resolutions for the regulation of non-finan- as private foundations, corporations, trusts and among cial subjects, however, corresponding to lawyers others. is Resolution No. JD-014-015 of August 14, 2015. 6. Sale of legal persons. In training it was stated that provisions of Resolution No. JD014-015 emerged from Act 2 of 2011 that regulates measures 7. Acting for a person paid by the lawyer or law firm acto meet customer for resident agents existing legal entities. ting as a proxy director of a company in relation to other legal persons. It should be noted that lawyers are required to comply with provisions of Law 23 of 2015, when in 8. Providing a registered office, business address, coexercise of their professional activity carried out rrespondence or administrative address for a company, on behalf of a client the following activities lis- partnership or any other legal entity that is not their ted in Article 24 of Law 23 of 2015. Which They are: property. 1. Sale of property.
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9. Acting for a person paid by the lawyer or law firm,
NORMS OF INTEREST acting as a figurehead shareholder for another person. 10. Acting for a person paid by the lawyer or law firm, acting as a participant of an express trust or performing the equivalent function. 11. Agent resident legal entities existing under laws of Panama. What should we lawyers do? Obligations to the Administration for Supervision and Regulation of Not Financial Subjects. 1. Perform due diligence to our customers, made a record of customers, shelter and updating customer information. a. Extended: a natural and legal persons. b. Enhanced: the PEP (politically exposed person), foreign customers, high-risk countries. About PEP should be noted that the Administration currently doesn’t have a list of PEP, so you’ll have to ask your client using the form. If you don’t have these forms, currently on the website of the Administration for Supervision and Regulation of Not Financial Subjects There is a guide of forms for basic and expanded due diligence or enhanced. In the following link: http://www.mef.gob.pa/es/direcciones/IntendenciaSujetosNoFinancieros/Paginas/mision-y-vision.aspx The Administration recommends updating customer information is performed for example once a year when customer pays single rate or resident agent fees. However, it is you who must set the term update their policies. This information shall be kept for a minimum period of 5 years and may be stored in paper or digital format.
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2. Choose at least two contact persons. (art. 12). To lawyers the law doesn’t require us to be a compliance officer, but a link between law firm or attorney and the Administration. If the lawyer or law firm fails to appoint the link will mean that is the legal representative. You can also designate a liaison fulfillment company will offer this service, however, even provide the company must provide a link to the lawyer or law firm. It’s noteworthy that the Administration doesn’t require any certification of the obligors, certifications are required for fulfillment companies. 3. Complete Form Data Update (ADSO). With this form the lawyer or law firm, is logged in as a subject nonfinancial the Administration for Supervision and Regulation of Not Financial Subjects. This form must place people who will be binding. 4. Perform a risk-based approach. Design controls and policies that follow the lawyer or law firm, it may be through a manual. Contact person is responsible are met and reports are made. Obligations to the Financial Analysis Unit (UAF) 1. It’s important to note that the Update Information Form (ADSO) must also submit to the FAU, which must also indicate the contact person. Once you register, your obligations are triggered. 2. Send a Currency Transaction Report or Quasi cash (cashier’s check issued to bearer), greater than B/. 10,000.00 at the end of a week. (RTE)
NORMS OF INTEREST Cash transactions, is when you get cash greater than B/. 10,000.00. The wire transfers are not reported, must be money greater than B/.10,000.00 arrives directly to office. Near cash, cashier’s checks are issued to bearer. This report should send the first 10 days of the month. Nothing is sent to the address: rte_abogados@uaf.gob. pa. However, in January 2016 reports will be made electronically, the UAF, notify obligors when enabled. These electronic reports generate a code which will be its identification code as financial obligor. In the case that no transactions are made in cash, by the time you must send the RTE each month indicating that has nothing to report. Subsequently, the UAF issue an affidavit form for lawyers or law firm that doesn’t make cash transactions, which must be sent twice a year in June and December. This form is in the process of preparation of the UAF, so at this point RTE must report and indicating that has nothing to report. However, in event that you get more cash to B/. 10,000.00 you must declare by RTE. 3. Identify unusual transactions and send the Suspicious Transaction Report (STR). Unusual transaction: a transaction that is not in harmony with the transactional customer profile. Suspicious transactions: is an operation that can’t be justified against the financial profile of the client or could be related to money laundering. The RUS can be sent any day of the month, that is, when you identify a transaction treated as suspicious. The form is sent by the client, in which the suspicious tran-
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saction is detected. For now, the page of UAF have been published warning signals to identify suspicious transactions, however, hasn’t yet published a document aimed specifically at lawyers. ROS for remission of the UAF phone you should call 514-0100, and the UAF will send a staff to remove the ROS package where you tell it to pick it up. This is a confidential information (Articles 55 to 58.) Because this is a financial intelligence, information from the UAF is not shared; then this person will be in charge of taking the appropriate department which will be assigned to an analyst. The required information will be verified with the lawyer, who is not a witness if the ROS merit pay. It should be noted that the person has to be a customer, if not client has no obligation to report and if the report indicates that FAU would be a contribution to the healthy criticism. Hence the initial report and supplementary report is generated if you choose to continue relationship with customer. It’s important to know that you should not tell the client that sent a ROS. The fact that an STR reporting doesn’t mean you have to be to leave the relationship with customer. If merit pay ROS, it will be sent to the Public Ministry, which is the entity in charge of the investigation. This information is not evidence, this is an information guide for prosecution.
NORMS OF INTEREST
Conclusions Registration as financial obligor to be done both to the UAF as the Administration for Supervision and Regulation of Not Financial Subjects. Lawyers or law firms must register immediately, as this law is in force since April 27, 2015. Sending reports need not be retroactive, will do after its registration in the Administration and in the UAF. The Municipality will make a monitoring with a risk-based approach, since they are aware that these new obligations therefore were found on the stage of diagnosis, no fines.
Recall that the fulfillment of these obligations in order to leave the gray list of Financial Action Task Force (FATF), who made us a visit in January 2016 to verify implementation and enforcement of provisions of Law 23 of 2015. L&E
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NORMS OF INTEREST
OUTDOOR ADVERTISING IN THE DISTRICT OF PANAMA IS REGULATED
O cil of which tures talled,
Giovana del C. Miranda G. - Attorney giovana.miranda@rbc.com.pa
n 22 September 2015 the Municipal CounPanama issued Municipal Resolution No. 138 regulates installation, use and control of strucand advertisements outdoor advertising insplaced or fixed within district of Panama.
The Agreement is structured on chapters that address the XIV General Provisions; prohibitions; Competition; Register of Outdoor Advertising; COMMERCIALS permits; Classification of advertising elements; Violations, Penalties and Procedure; Grounds for cancellation of permits; Cancellation and Termination of Advertising Taxation; Areas and routes Free Outdoor Advertising; Advertising nodes; Annex and the Transitional Provisions.
hed and maintained the already covered, these being, Avenida Balboa and Coastal Strip; Via Argentina; Federico Boyd Avenue; Manuel Espinoza Batista Avenue; Fiftieth Avenue; Santa Elena and areas declared as Heritage of Humanity. Similarly, two advertising nodes are created, which will be located at 50th Street and Via Spain and aimed orderly concentrate advertising in two or more primary roads in the city in order to combat visual pollution and improve environment. Grant Agreement terms ranging from ninety to 180 calendar days from the effective date of rule, so that ads to billboards not registered but have permission to proceed to registration; for advertising structures installed in additional roofs are removed; for unipolar advertising structures containing more faces suit allowance; remove structures installed on roads or restricted areas and perimeter fences to suit the sizes and measures established.
It’s noteworthy that the standard is based on principles of safety, urban aesthetics, decoration, administrative efficiency, speed, transparency, universal legal requirements and investment security. Finally, we have the 138 Agreement repeals Municipal AgreeAnother thing to mention is that the Agreement pro- ment 72 of 2000 and will take effect on 19 December. L&E vides that various forms of outdoor advertising in accordance with technological advances and human creativity applied to the sector that are contrary to morality and decency allowed, meeting standards regulating land use for urban development and public interest. It adds that advertisements, can be installed only on privately owned farms and elsewhere is not prohibited by law, except in accordance with authorizations of the planning authority. New areas and free outdoor advertising channels are establis-
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FotografĂa: La Prensa
NORMS OF INTEREST Giovana del C. Miranda G. - Attorney giovana.miranda@rbc.com.pa
ENTRY INTO FORCE EXTEND PERFUMES HEALTH PERMISSION
M
inistry of Health issued Resolution No. 1331 of October 12, 2015 whereby extension was granted until February 29, 2015 for submission of the application for licensing of colonies, toilet waters and perfumes.
PROCEDURE FOR MEMBERSHIP OF MUSICIANS, ARTISTS AND PROFESSIONALS IN MIGRATION
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esolution No. 31913 of November 13, 2015 issued by the National Immigration Service approves affiliation procedure for those foreigners applying PasCommunicates the authority concerned in sers Visa or temporary workers such as the importation, distribution and markemusicians, artists, athletes, professionals ting in the territory of colonies, toilet waters and who enter the country in order to develop an activity. perfumes, which as of January 1, 2016 must submit application for licensing of colonies, toilet waters and perfumes. It establishes the rule that the alien shall personally to the institution to perform the procedure; however, excepAdded that after deadline for completion of registration, the tionally interested party may file a formal request with a Authority regulations and penalties apply to the products maximum of ten (10) days prior to the date of the event or listed that don’t have their health records for such purposes presentation for affiliation is made outside the institution, and inspections of establishments manufacturing is made, taking into account profile of artist. Such request must be imported, distributed and marketed the products. L&E approved by Director of National Immigration Service. The rule will come to regulate a practice of long standing and that in recent months has been criticized both migratory labor flexibility with which issues international artists who come here are treated to presentations. L&E
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NORMS OF INTEREST Giovana del C. Miranda G. - Attorney giovana.miranda@rbc.com.pa
NATIONAL COMMISSION OF SURE HOSPITALS OPPOSITE TO DISASTERS
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y Resolution No. 1199 of November 17, 2015 issued by the Ministry of Health, the National Commission on Hospitals Safe from Disasters was created and will be responsible for coordinating, organizing, developing proposals, policies and strategies, in order to disaster risk reduction in health facilities and thus contribute to saving lives during adverse events and public investment protection. The Commission will among other functions, to establish an action plan to implement the strategy of safe hospitals signed by the Ministers of Health of the Americas; coordinate national timetable for evaluation of health facilities and formation of corresponding implementation plans of measures to reduce disaster risk and discuss with the appropriate authorities in the field of engineering and architecture, possible actions to find that new health facilities are built safe disaster and make improvements to building codes. The rule in question, also Resolution CD50. R15 arises by reason of the accession of Panama to Hyogo Framework for Action 2005-2015 adopted at World Conference on Disaster Reduction (2005) of United Nations and 2010 approved the Board of PAHO/WHO signed by Ministers of Health of the Americas and Health Plan of Central America and Dominican Republic. L&E
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INCENTIVES FOR THE HELLENIC MERCHANT FLEET
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he Board of Directors of the Panama Maritime Authority, through Resolution No. 071-2015 of 14 October 2015 authorized Director General of the Merchant Navy to promote economic incentives to attract ships belong or have belonged in the past five years to merchant fleet of the Hellenic Republic, who enroll in the Merchant Marine of Panama. In this context, it authorizes the Director to regulate resolution at issue. From a reading of preamble to resolution, one can conclude that it took into consideration financial crisis in Greece which necessitates support of international community, as well as by the fact that gradual elimination of special tax treatments Greek shipping industry has been a massive exodus of Greek shipowners to other merchant records that offer benefits and Panamanian merchant Registration is attractive for shipowners. L&E
LABOR ISSUES METRO LINE TWO IS SERVING IN SPECIAL ADDRESS
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y Resolution No. DM-538-2015 of October 30, 2015 issued by the Ministry of Labor and Workforce Development’s Special Working Address Line 2 Metro Panama is created, for a period up to 6 months after end construction of the work. L&E
CONSULT, DOCTRINE & JURISPRUDENCE NO CONFLICTING STANDARDS IN CIVIL AND TAX CODE CONCERNING DISSOLUTION OF COMPANIES
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he Office of Administration issued Consultation C-101-15 of October 16, 2015, by which absolves question posed by the DGI MEF in sense of knowing whether there is incompatibility between Article 318-A, paragraphs 4 and 5 of the Tax Code, Article 1784 of Civil Code, with respect to the act of dissolution of legal persons liable to pay single rate; and incompatibility exists between these standards, which would indicate prevalence. To absolve proposed question, Mr. Attorney notes that in his opinion the indicated legal regulations aren’t contradictory, given that as indicated in Article 318-A of the Fiscal Code, when it refers to cancellation of registration of a legal entity it is consistent with provisions of Article 1784 of Civil Code. Indicates that the norm of Tax Code refers to a situation that leads to dissolution and de-registration of a legal entity and brings up the definition of the terms dissolution and cancellation, as estimated tax rule making It is to add a new cause for dissolution or termination of legal persons.
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Giovana del C. Miranda G. - Attorney giovana.miranda@rbc.com.pa
All this is based on the fact that in legal system, there are legal provisions governing the matter; such is the case of Article 517 of Commercial Code, contained in Chapter XI, called “the term and Dissolution of Societies”, it refers to grounds on which a company ends, specifying that it should take place, in cases under the deed of incorporation, by unanimous agreement of partners, conducting business, lack or loss of social order or inability to do so; by merging with another company or companies and by judgment. In this connection, it mentioned that private foundations, which are another type of legal entity that is subject to payment of flat tax, the No. 25 of June 12, 1995 Law establishes as grounds for dissolving it, arrival of the day to terminate the foundation, fulfillment of its purposes, insolvency, default or bankruptcy, loss or total extinction of their property, have been judicially declared revocation, and any other established in the record foundational. As can be seen, our Code of Commerce (generally) and various special laws regulating various types of legal entities, refer to the grounds for dissolution according to the type of company or legal person.
CONSULT, DOCTRINE & JURISPRUDENCE Within this context, it believes that Tax Code in its paragraphs 4 and 5 of Article 318-A as amended by Law No. 49 of September 17, 2009 Law establishes new grounds to terminate the existence of a legal person, by reason of breach of tax liability, which is the failure to pay single rate for period of ten (10) years. For its part, Article 1784 of Civil Code regulates matters concerning cancellation of registration in Public Registry, documents, certificates or acts in accordance with Article 1756 of the Code precepts must comply with the formality of registration, so that, as provided in this legal provision are requirements to proceed with cancellation.
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Concludes that Article 1784 of the Civil Code doesn’t regulate concerning dissolution of legal persons, therefore, it’s of the opinion that in regard to the act of dissolution, one can’t speak of an inconsistency or contradiction between two laws; but an agreement between legal norms. L&E
CONSULT, DOCTRINE & JURISPRUDENCE
FULL OF SUPREME COURT DECIDES CONSTITUTIONAL CLAIM BROUGHT AGAINST THE DECREE NO.30 OF 22 FEBRUARY 2011, WHICH RATIFIED THE COMMITMENT OF NATIONAL GOVERNMENT WITH INDIGENOUS PEOPLE IN NGÄBE BUGLE RESERVE
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n October 28, 2015, under presentation by Judge Abel Augusto Zamorano, the Supreme Court issued a ruling in which the Decree No.30 of February 22, 2011, claimed by Dr. Miguel Antonio Bernal Villalaz is unconstitutional. In short, the Decree No.30 of February 22, 2011, issued by the President of the Republic of Panama, confirms the commitment of national government with native peoples of the Ngäbe Bugle Reserve not start, not promote, reject the exploration or exploitation of mines of Cerro Colorado. Among arguments of plaintiff it states that this Decree violates Article 186 of the Constitution, which states that acts of President of the Republic, except those who can exercise alone are worthless if they aren’t endorsed by the Minister of respective State, who is responsible for them. Continued pointing rule that orders and regulations that a Minister of State issued instructions of President of the Republic are binding and can only be invalidated by it as being contrary to the Constitution or the law, without prejudice to resources there place. Dr. Bernal motivates his claim stating that although the President has express and limited powers may be exercised autonomously for amendment of a law by a decree, it must be signed by the responsible Minister,
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Ailen Galvan - Legal Assistant ailen.galvan@rbc.com.pa
therefore, the decree must be signed by Minister of Government, as there is direct responsibility for it. Added to this indicates that foundation of Decree no legal logic, it doesn’t guarantee social peace, nor is it the way to get to peace status indefinitely. Finally points that standard has no legal effect, because there is no responsible official to ensure compliance as required by law. For the Attorney General’s Office is not unconstitutional since challenged this Decree in paragraphs 2 and 3 of Article 183 of the Constitution states that are powers of the President alone, and participation of the Minister of State is not required respective, when needed address a public order situation in a given territorial area and where President is called upon to safeguard public order. For the full Supreme Court, first you need to make an examination as to procedure for issuing the decree, and as to constitutional powers of the President to sanction and issue the decree. In this particular case, the Plenum of Supreme Court considers that if it is true that Constitution (art. 183, paragraph 2 and 3), regulates possibility that President use his constitutional powers and can issue legal decrees or resolutions alone, without the endorsement of a Minister of State; It is also true, it is not possible to
CONSULT, DOCTRINE & JURISPRUDENCE
set the content of Decree No.30 of February 22, 2011 perspective, no guarantees and mining exploration within the framework of these functions, since no one in the Reserve when this topic is laid down in Artipurpose is to repeal or regulate the content of a law. cle 121 of our Constitution and should, in any case, intervenirse through a law, issued by the Legislature. Continuing plenary arguing that Decree No.30 of 2011, setting ratification of commitment of natio- In this decision majority of judges of Plenum of the nal government, not to initiate, promote, or ap- Supreme Court considered that Decree No.30 of Feprove exploration or exploitation of a mining area bruary 22, 2011 was unconstitutional, unless the opi(Cerro Colorado), or any other deposit within ju- nion of Judge Harry A. Diaz, who said yes is located risdiction of Ngäbe Bugle and other regions; a di- discussed within functions that can be exercised by rect relationship with Article 121 of the Constitu- President of the Republic as a unit, as required by tion, which states that the law shall regulate use of the Constitution; and that this decree was aimed at nonrenewable natural resources so that same social, solving a conflict and the need to ensure public oreconomic and environmental damage arising done. der, due to violence that occurred in the Ngäbe Bugle Reserve; and therefore that Decree, responds to And therefore, if mineral resources of soil and sub- emergency conditions, necessity and restoration of soil, are part of the category of non-renewable na- public order, and its purpose wasn’t to repeal any tural resources, their exploitation can’t be regulated law or regulation, to contention that President of the or compromised through a decree, in exercise of Republic, adhered to the law and the Constitution presidential power that Article 183 , paragraph 3, of wasn’t beyond their powers granted to him by this. Constitution authorizes President of the Republic, L&E and that under these circumstances would compromise their act on an issue that doesn’t compete directly as chairman or member of the Executive Body. At same time considers the Plenum of Supreme Court, the Attorney General’s Office that misses to review this Act is not unconstitutional, since on the issue under discussion on exploitation of mineral resources deposits located on indigenous reserves, in this particular case, Cerro Colorado, this has nothing to do with issues of public order; therefore, commitment made by the Executive in this Decree, is the sole and exclusive authority of a legislative body, independent and consultative. It concludes the presentation of this ruling, noting that the President acted beyond powers conferred by constitutional provision when it engaging in issues that aren’t inherent to him, from a constitutional
26.
POLITICS THE UNIQUE CANDIDATES IN PANAMANIAN PRESIDENTIAL ELECTIONS
“Ú
Rafael Fernández Lara Attorney
rbcweb@rbc.com.pa
nique” according to the dictionary of the Real Spanish Academy, means “alone and without another of his kind,” but, politically speaking means only one candidate participated in a campaign that aims to elect the Chief Executive of the Nation.
“The Constitutional Party.” The Liberal Party, which encouraged an anti-reelection current, took the decision to run as presidential candidate Jose Domingo de Obaldia, First Appointed (Vice President) government Amador, although like Amador Guerrero, was affiliated to Conservative Party.
At present, possibility of this political aberration seemed unlikely in our environment, but to delve into our past history, we found several of these irregular situations that, like it or not, are part of our presidential election processes, showing that despite these and other imperfections of the past, in our time the democratic electoral process has improved and strengthened considerably.
Jose Domingo de Obaldia enlist supporters got both the Liberal Party and the Conservative, and with the help of them, set what was called “The Republican National Coalition”. Some argue that lack of popular support, Dr. Manuel Amador Guerrero ended up resigning his possible re-election effort and finally suggested nomination of Mr Ricardo Arias Feraud official candidate, who was immediately backed by government forces.
~•~ Four years after our independence from Colombia and announced the upcoming elections in 1908 to choose a successor to our first president, Dr. Manuel Amador Guerrero, a year earlier, ie in 1907, the party emerged alterations. Article 82 of our first Constitution of 1904, noted viability of the president could be reelected for another term, provided they are separated from presidency six months before elections.
Importantly, Dr. Manuel Amador Guerrero, when asked for license to the National Assembly, seeking rest and relief from physical ailments that afflicted them, and determined a trip to several European countries, also including United States, leaving manager, according to the Constitution, its First Appointed Jose Domingo de Obaldia.
With the desire to get his nomination for a new presidential While in the city of New York, quadrennium, a mass of followers of Dr. Manuel Amador he visited Dr. Francis DelaGuerrero founded an independent partisan group called field, who, after a general and
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POLITICS meticulous examination, diagnosed the President of Panama was gripped by an invincible disease, sarcoma, and that “he would not live another two years” . Indeed, Dr. Amador died on May 2, 1909 at the age of 75 years. On his return trip, in an open letter that became public in late January 1908, Panamanian leader flatly rejected and ruled out any possibility of going for reelection. Given this proceeding, the April 13, 1908, Constitutional Party, formed by relatives of the President and of mostly conservatives nominated Ricardo Arias Feraud, who at time held the post of Foreign Secretary (Minister) as candidate the Presidency of the Republic. The opposition meanwhile, with the Republican Alliance Coalition, nominated José Domingo de Obaldia Gallegos, conservative affiliation, supported by illustrious characters of liberalism and conservative featured. The two partnerships mentioned were integrated by conservatives and liberals. Then Ricardo Arias Feraud proposed that he and de Obaldia renounce their candidacy in favor of another. Similar proposal suggested that both the President Amador Guerrero, thus trying to meet the urgent and patriotic obligation to stay one candidate for Constitution Party. In the absence of effective negotiations and political arrangements, Don Ricardo Arias Feraud, on June 6, 1908, submitted his irrevocable for the presidential nomination resignation, which was described as unexpected and caused significant anger among its many followers throughout the Republic. Some felt that was based on a presumed loss for lack of popular support and others as a patriotic attitude under the circum-
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stances of the struggle and difficulty of the moment. On June 13 voting for presidential electors, indirect system, chose the presidents, which were developed with remarkable calm, and on 2 July President of the Republic is elected Don Jose Domingo de Obaldia monitored, thus becoming the first single candidate for presidency of the republic in Panamanian electoral process. ~•~ Prior to 1916 presidential electoral contest, Liberal Party looked abysmally fractionated as a result of breakdown of political and personal friendship between the two great leaders of creole liberalism that time, Drs Carlos A. Mendoza and President Belisario Porras Barahona, for 1914 elections for deputies. Dr. Mendoza drove presidential candidacy of Rodolfo Chiari Robles and the president, Dr. Porras, Dr. Ramón Maximiliano Valdés. The National Convention of the Liberal Party nominated Rodolfo Chiari within days of death of Dr. Carlos A. Mendoza, its maximum defender, but the President Porras Barahona maintained its position to support candidacy of Dr. Valdés, supported by the “Porrist Liberal Coalition.” In this campaign President Porras was subject of vigorous personal and political attacks where offenses predominated, machination and disgrace in every way. Like accusing president to support the candidacy of Valdes using state resources, in an election where he was wounded and use of firearms. By the time they had to meet Board of Electors, delegates who defended aspirations of Don Rodolfo Chiari walked out. On August 2 Electoral Board met without spokesmen of Rodolfo Chiari and Valdes was promoted to the position of President for 1916-1920 quadrennium, after Chiari Robles decided to not participate in an election where tournament there was a total control of electoral apparatus by the official candidate, Ramón Maximiliano Valdés and credited second prototype involving a single presidential candidate in elections in our national political history.
POLITICS ~•~
Shortly before presidential election process announced on August 5, 1928, Liberal leader Dr. Belisario Porras Barahona said that Porrist National Coalition renounced attend the electoral process, thus the presidential candidate Jorge F. Boyd is removed the race, thus being the sole candidate for president Engineer Florencio Harmodio Arosemena, government candidate and President Chiari, man possessor of a strong culture, who won unopposed naturally.
The February 15, 1924 day, the Board members of Liberal Party, meeting in Las Tablas, Los Santos province, unanimously appointed the presidential candidacy of Rodolfo Chiari Robles, who was a candidate imposed by Belisario Porras Barahona. Popular elections were held on August 3, 1924 (1920 is used for the first time direct elections of citizens in elections) and Rodolfo Chiari won electoral victory over Manuel Quinte- Don Florencio Harmodio Arosemena was the third ro Villarreal overwhelmingly for period 1924-1928 . event in our history where Republican presidential candidate participates only in an election process. In late 1927 it begins to take shape expresses the idea of the re-election of Rodolfo Chiari Robles for the quadrennium ~•~ 1928-1932. But at the beginning of 1928, so the president sudden Rodolfo Chiari abandons its re-election claims. The first Sunday of June 1936, Panamanian people went to the polls to record their vote to elect the First MagisIn the National Convention of Liberal trate of the Nation for period 1936Party held in the town of Aguadulce, 1940. Before holding these elecCocle Province, on May 6, 1928, Engitions because they were singled neer Florencio Harmodio Arosemena out for irregularities, enforcement won presidential nomination unaniexercised by the magistrates, mamously backed the incumbent Preyors, governors and all employees sident, Don Rodolfo Chiari Robles. of the state aid and open bias in favor of the official candidate Dr. For the election campaign of 1928, Juan Demostenes Arosemena. liberalism was deep and irreconcilably divided between Chiaristas and First the National Election Board, Porrists. Porras had been declared a majority of this entity, acceppublic enemy and expelled at the ted the triumph of Domingo Diaz time with his friends in the National Arosemena, opposition candiBoard of Liberal Party for criticizing date and then, following the rewho had originally supported current moval of a member of electoral President Rodolfo Chiari Robles. body, July 7, 1936 was proclaimed Juan Demostenes Arosemena vicTherefore, Porras organized what tory by a margin of only 1,845 he called “the Porrist National Coavotes in his favor, then taking lition”, which the January 23, 1928 was entered into the it the Presidency of the Republic on October 1, 1936. National Election Board to propose the candidacy of Jor- Dr. Juan Demostenes Arosemena not complete his term ge F. Boyd at the National Convention of this group held when he died of a heart attack in early morning hours of Dein Panama City on 12 April 1928. The candidate Boyd cember 16, 1939 in the city of Penonomé, Cocle Province. was married to a niece of the wife of President of Uni- First Appointed (Vice President), Augusto Samuel ted States of America, the Democrat Woodrow Wilson. Boyd, became President of the Republic to return im-
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POLITICS mediately to Washington, where he was Ambassa- Arnulfo Arias Madrid as president only candidate with dor of Panama. In meantime, Second Designated Eze- only 39 years old, making it the fourth case and fortuquiel Fernández, took over Executive very briefly. nately the last one seen our republican history, where a single candidate he attended a Panamanian presidenDevelopment notial election process, which we believe violates ideologited in election to cal foundations of what we mean by liberal democracy. take place on 2 June 1940, new political ~•~ party founded by Dr. Arnulfo Arias MaIt’s clear that the four examples listed in the annals of drid, National Reour national election campaigns of political events unvolutionary Party, doubtedly point to anomalies and pantomimes that ran as presidential symbolize just opposite of authentic or genuine eleccandidate, as a coatoral elections anywhere in the world. The withdrawal lition of parties that of one of two candidates prior to elections because had taken advance of lack of guarantees shows that process is corrupted the presidency of the nation Dr. Juan Demostenes Aro- by uneven and is dishonest and lacking in legitimacy. semena. Therefore, candidate Arnulfo Arias Madrid was protected by a strong alliance called “associated parties”. In history they are presumably considered as constitutional elections, but under any point of view may be called The rest of other political groups organized the so-ca- democratic. lled “Popular Front” suggesting candidacy of Dr. Ricardo Joaquín Alfaro for presidency of the Nation. Naturally, if we analyze the different electoral processes of our nation, we see that many of them are examples of flaws and By April 1940 candidate Joaquin Ricardo Alfaro Jované imperfections cause and responsibility of our authorities. stated that constitutional guarantees weren’t respected in In contrast, it’s fair to say our last election commenthe country. There was no right of assembly, no guaran- dable, especially since 1990, as they all represented a tees of individual freedom, and that supporters of Arnul- breakthrough towards democracy, still with some irrefo Arias had gangs of outlaws that terrorized opponents, gularities and aberrations, but ultimately an unquestioand members of National Police who abused mercilessly nable progress in strengthening a system of government his coreligionists and were used illegally state money. which is backed and supported by most Panamanians. Also, by followers of Dr. Arnulfo Arias and the go- This progress should now be the minimum expectation vernment, there were allegations against Ricardo J. of managing elections and prevent them in the future Alfaro had planned a seditious movement, which commit the mistakes that our history reminds us. L&E was denied by this and “Popular Front” in his favor. On May 26, 1940, opposition candidate, Dr. Ricardo Joaquín Alfaro Jované, decided to decline his presidential candidacy noting that there were no guarantees essential to continue his campaign and participate in elections that would clearly dishonest. Thus, on June 2, 1940, the electoral contest was held with
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PANAMANIAN ECONOMY MINIMUM WAGE PENDING FOR DEFINING
A
Giovana del C. Miranda G. - Attorney
little one month end of year 2015, pending define giovana.miranda@rbc.com.pa among other topics of vital importance for the country, as regards minimum wage should enter into force next guaranteed by law and can be set to meet the minimum January 1, 2016 and that by its very natureIt is controverneeds of the worker and his family, taking into consisial because it produces criteria found among involved deration economic and social conditions in countries.” sectors, workers, private enterprise and government. On the minimum wage as defined by International Labor Organization should be understood as “minimum amount to be paid to a worker for work or services rendered, within a given period, in any form whatsoever calculated by time or output, that can’t be reduced, either by individual or collective agreement, which is
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As provided in Article 174 of Labor Code minimum wage must be reviewed every two (2) years by a Minimum Wage Commission composed of representatives of the government sector, employer and worker designated by the Executive. Members of the Commission were appointed by
PANAMANIAN ECONOMY
Executive Decree 127 of June 2015, representing government sector, Ernesto Carles Minister of Labor and Workforce Development who presides, Margarita Aquino Cornejo from Ministry of Economy and Finance (MEF), Manuel Grimaldo Ministry Trade and Industry (MICI), Damaris Leoteau Ministry of Agricultural Development (MIDA).
professions or occupations.
In addition we should mention that Article 9 of Executive Decree No. 182 of December 30, 2013 which currently governs minimum wage adds new elements to provide that the Commission declared in permanent session to be studied on a tripartite basis and discuss issues corresponding to productivity, By private enterprise is Roberto Lombana and John wages, generating new jobs and development, theA. Ledezma of National Council of Private Enter- me developed in 97th Meeting held in 2008 at ILO. prise (CONEP) and Alexis Fletcher represents Panamanian Chamber of Construction (CAPAC) In our country we can’t speak of a single miniand representation of workers went to Rafael Cha- mum wage, since wage is set by time, by region, varria the National Workers organized (CONA- economic activity and size of the company, so that TO), Eduardo Gil National Council of Organized we now have about 34 different minimum wages. Workers and Genaro Lopez by the National Confederation of Independent Trade Union Unity. Returning to concepts of International Labor Organization and which have been mentioned in DeTo fix salary and as provided by law must consider the cree 182, we must above organization has drawn following elements: up a list of criteria for determining minimum wages in hundred and eighty one (181) members. 1. The regional differences in cost of living; Product of this inventory has been established that criteria used by most member countries and representing 61% criteria were social and economic crite2. The overall economic and social policy ria, the cost of living or inflation within social cost.
of the country in aspects of comprehensive and sustained national development; 3. The policy of employment and redistribution of income; 4. The nature and risk of work; 5. Conditions, time and place where the work is performed and 6. When ineligible, differences between
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The second criterion used by more than 51% of member countries is the economic factor, location and/or economic development, which is known as gross domestic product. 35% of the affiliated countries used general wage level, while the fourth most widely used criteria were the needs of workers and their families accordingly. 26% of countries was based on productivity; however, it appears that the criteria were used jointly and not individually, although survey doesn’t indicate accurately. Similarly, the ILO recommends that inflation criterion can’t be the only criterion to be used or can
PANAMANIAN ECONOMY
be used exclusively, but in conjunction with other partners economic criteria, using at least three of criteria in addition to inflation or cost of living, economic growth and labor productivity. Important comment, the ILO also warns that it is dangerous to increase real wages if economy is not growing, statistical studies show that countries with higher average wages are those that have higher labor productivity, higher productivity means that a higher average salary, hence the importance of raising labor force.
It’s noteworthy that Wage Commission through the Ministry of Labor has held meetings in different parts of the country and that in order for Commission to receive first-hand concerns of both sides, opening the compass to be heard at all the parts. According to official figures inflation is 2.4% and is expected that by 2015 cumulative inflation doesn’t exceed 0.5% and GDP will grow by 6.1% which is consistent with projections from ECLAC, IMF and World Bank .
However, as soon as private sector has indicated it reiterated its willingness to reach an agreement on the issue among productive sectors, in context of a slowing economy, where there are elements of a slight economic slowdown without neglecting productivity, which as discussed in preceding paragraphs is one of the criteria the ILO says Another ILO recommendation is the establish- should be considered for setting minimum wage. ment of a methodology for the process of minimum wage setting which allows among other things to The latest version of the measure, it fell to him unilatehave greater predictability, ie that beforehand can rally to President of the Republic since Tripartite Comprovide the range of increase so more use of so- mission didnt reach a consensus on value of increase in cial statistics resulting in a more scientific approach. the two regions where labor universe splits in Panama. The three (3) sectors government, employer and worker should care about raising productivity without diminishing economic growth, when we are productive win-win and this means that both government and private sector should be more productive not only workers.
At national level this leads us to consider that statistical system must be adapted to measurement settings such as productivity and make it official figures, not only at country level but regions or sectors of the economy and work with macroeconomic and sector figures. It implies that society should agree to establish a methodology and official figures with socioeconomic indicators should consider not only the country but also sector level. So companies can make a planning labor cost component for the coming years. Given that the Commission is in permanent session, this process should be defined with sufficient time for adjustments as appropriate and not wait for December 31th.
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On December 9 Minimum Wage Commission shall submit its report; without the information disclosed in media it seems that there will be no consensus and the Executive shall again set new minimum wage rates. L&E
PANAMANIAN ECONOMY
CONSUMER’S PRICE INDEX
I
n October, three of the groups that make up the basket of LPC showed decreases five groups increases and four were unchanged. Groups that had negative variations and most significantly affecting CPI were 0.9 percent Transport; Communications 0.3 Alcoholic beverages and snuff and 0.1 percent.
Source: CGRP
mostly affected by decline recorded in “Beer” 0.2 percent, class by decreasing prices of canned beer. Groups that showed positive changes in CPI were:
Housing, water, electricity and gas with 0.4 percent; Furnishings, household equipment and routine household maintenance, restaurants and hotels and MisIn group Transportation recorded decrease “Fuels and cellaneous goods and services, all with 0.2 percent. lubricants for personal transport equipment” class with 3.2 percent due to the drop in price of fuel for cars. Finally, groups Food and non-alcoholic beverages, clothing and footwear, recreation and culture and educaIn Communications group, significant variation tion remained unchanged. L&E in class “Telephone Equipment” with 1.9 percent highlighted by decrease in price of mobile phones. The group of alcoholic beverages and snuff was
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PANAMANIAN ECONOMY
GROUPS IPC OCTOBER 2015
PANAMANIAN ECONOMY
MAIN ECONOMIC INDICATORS MONTHLY: JANUARY-SEPTEMBER 2014-15 COMMENTS
F
or the period of January to September 2015, major monthly economic indicators showed positive performance in production activities related to domestic demand in the country, compared with their counterparts in 2014 were: slaughter of cattle, pigs, milk production pasteurized tomato products, soft drinks and sugar; Hydraulic power generation, water billing in the Republic; value of permits for construction, additions and repairs, value of premiums and assets of national banking system.
Fuente: CGRP
2. Electricity and water: a. Electricity: The hydraulic power generation rises 51.6 percent; motivated by water company increase of 4, 3 solar and wind power increased, it should be noted that these energy sources are covered by hydro power generation. Meanwhile, thermal energy of electricity fell by 21.7 percent, as surplus generated by Panama Canal Authority at 25.9 percent.
Indicators related to the world, showed positive signs, weight exported bananas, melons, live cattle, and hides and skins; passenger entrance living abroad; toll re- Total electricity venues, net tons and cargo volume on Panama Canal. percent which by 6.9 percent, cent government 1. Manufacturing industries:
consumption increased by 6.9 excelled, residential customers trading at 9.0 percent, 9.3 perand generators at 84.4 percent.
Increases were reported in cattle slaughter by 0.8 percent and pork by 4.8 percent. On the other hand, increased production of chicken meat 6.9 percent, pasteurized milk 10.8 percent, tomato derivatives 11.0 percent soda by 2.2 percent and alcohol rectified in 0.2 percent.
b. Water: The turnover of drinking water in the Republic increased by 3.3 percent and leading sectors were: trade at 4.7 percent and 3.7 percent residential. For its part, government sector decreased by 1.2 percent and 0.1 percent in industry.
Negative changes were observed in the production of evaporated, condensed and powdered milk 10.3 percent, natural milk used for production of products by 2.1 percent, sugar by 3.5 percent, salt 9.4 percent and alcoholic beverages by 4.3 hundred.
3. Construction:
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The and lled ver,
value of permits for construction, additions repairs grew by 9.8 percent. Of these, excein residential construction 24.6 percent; Howenon-residential construction fell by 5.7 percent.
PANAMANIAN ECONOMY positive changes were observed in 6.4 percent banaAt district level, most representative increases were in: Pa- na, melon and 32.1 percent of live cattle 292.9 percent. nama 9.8 percent, Columbus 12.8 percent, 60.8 percent and Arraijån districts grouped David, Santiago, Chitre, Agua- c. Weight in exports of goods: dulce and La Chorrera, at 17.3 percent. Decline was repor- Weight of exports of goods fell by 17.5 percent; the most ted in district of San Miguelito in 30.1 percent. Concrete sensitive items were: petroleum products at 48.3 percent, production fell by 34.7 percent and 9.1 percent cement. watermelon 10.4 percent, pineapple 31.4 percent, shrimp 6.6 percent yellow fin tuna frozen, fresh fish and fish fillet 13.5 percent, raw sugar 29.1 percent, flour and fish 4. Internal trade: oil 57.7 percent, coffee 85.9 percent, 8.8 percent clothes, beef cattle and 12.5 percent, hides and skins 2.6 percent. a. Sale of fuels for domestic consumption: Sale of fuels for domestic consumption fell by 0.8 percent; of these, low sulfur diesel with 22.3 percent. Mean- Moreover, favorable performance comes in: 7.6 percent while, gasoline consumption increased by 9.4 percent, banana, melon and 15.0 percent live cattle 228.1 percent. mainly 95 octane by 19.6 percent and 91 octane at 0.8 percent. Increased consumption of bunker C at 95.7 per- d. Colon Free Zone: cent and liquefied petroleum gas (LPG) by 1.1 percent. The value of commercial activity in Colon Free Zone reported negative variation of 9.0 per cent, explained by reduction in FOB re-exports by 13.5 percent and imports b. Sale of new cars: The sale of new cars presented positive variation of 3.7 percent VAT. Also the weight of commercial activi7.6 percent, specifically segments: regular cars by ty in metric tons, fell by 5.4 percent, mainly due to fall 8.3 percent, luxury cars 2.5 percent, SUV’S 8.6 per- in 10.3 percent of exports and imports by 0.7 percent. cent, minivans 70.5 percent, pickups 7.8 percent and trucks 17.0 percent. Low segments of panels in bu- 6. Hotels and passenger entry: ses 10.0 percent and 27.9 percent were reported. a. Hotels: 5. Foreign trade: The hotel business in the city of Panama presents decrease in average daily rooms occua. CIF value of imports of goods: pied 4.8 percent, average daily overnight stays CIF value of imports of goods decreased by 12.1 percent, at 4.5 percent and occupancy rate at 5.3 percent. mainly consumer goods by 18.5 percent, intermediate goods by 9.0 percent and capital goods by 4.0 percent. b. Passenger entrance living abroad and expenses: The entrance of passengers residing abroad increased b. FOB value of exports of goods: by 8.6 percent, influenced by higher input 12.7 percent The FOB value of exports of goods decreased by 14.9 visitors, especially tourists 24.6 percent, 8.8 hikers perpercent, items that fell most were: petroleum products cent and direct transit and crew members by 6.6 percent. at 47.8 percent, 17.9 percent watermelon, pineapple Costs incurred by visitors amounted to 14.6 percent. 31.6 percent, 23.8 percent shrimp, yellow fin tuna frozen, fresh fish and fish fillet 17.3 percent, raw sugar 7. Transportation: 18.5 percent, flour and fish oil 53.3 percent, coffee 83.3 percent, 2.6 percent clothes, meat of cattle by 1.7 per- Panama Canal indicators registered positive variation cent and skins and leather 6.1 percent; on the contrary, in toll revenues of 5.2 percent, net tons at 5.5 percent
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PANAMANIAN ECONOMY and transit of ships at 3.7 percent. Cargo movement through National Port System increased by 13.3 percent, highlighting bulk in 32.0 percent and 0.1 percent in containerized; however, general cargo decreased 29.1 percent. Movement of containers in TEU increased by 4.4 percent.
0.1 percent and in turn, non-tax revenues by 5.8 percent. In indirect taxes, collection of ITBMS sales decreased by 4.2 percent and indirect taxes by 2.8 percent.
10. Activities of scattering:
The report wagering gambling operators of chance recorded growth of 3.1 percent; in turn, slot machines type “A� by 5.1 percent, meeting bets on sporting events a. National Banking System: Total assets of national banking system rise by 11.9 14.6 percent and horse racetrack at 1.3 percent. Net sapercent due to good performance of some of its com- les giveaways National Lottery increased 2.4 percent. ponents such as liquid assets were higher by 3.5 percent and loan portfolio by 12.4 protruding external 11. Other related: portfolio by 15.4 percent and domestic 11.2 percent. Total deposits grew by 9.0 percent, standing out- a. Employment contracts registered in the MITRADEL: side in 16.3 percent and domestic by 5.7 percent. Employment contracts registered with Central Office MITRADEL negative change of 0.5 percent, mainly, works determined in 8.1 percent; moreover, defined and b. Stock Market Indicators: Total volume traded on the Bolsa de Valores de Pa- undefined grew in 1.3 and 4.30 percent, respectively. L&E nama, fell by 6.3 percent. In this, primary market at 3.2 percent, secondary at 6.8 percent and 45.7 percent repurchases reduced. In stock market, the index calculated by Stock Exchange decreased by 0.3 percent and number of shares 33.8 percent; however, volume traded in shares fell by 2.4 percent.
8. Financial Intermediation:
c. Insurance: The value of premiums has positive variation of 2.1 percent; featured segments were individual life in 8.1 percent, 1.8 percent health, group life 5.5 percent, 13.8 percent automobiles, other transportation 3.5 percent and 47.1 percent in bonds. 1.9 percent personal accident, fire and multi-risk and 6.0 percent in technical fields 34.0 percent: On the other hand, negative changes in the segments presented. Gross claims incurred amounted to 6.8 percent. d. Loans from the Agricultural Development Bank: Information not available at the source, to date.
9. Public Sector Finance: a. Current revenue of Central Government: Total current revenues of central government fell by
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PANAMANIAN ECONOMY
WORLD BANK HIGHLIGHTS ACHIEVEMENTS OF PANAMA AND REITERATES ITS SUPPORT
W
orld Bank officials today highlighted economic development of Panama and achievements and reiterated their support for further progress in prosperity with equity. “Panama is at the center of international trade and at the peak of economic growth in the region,” said World Bank Vice President for Latin America and the Caribbean, Jorge Familiar, after meeting with President Juan Carlos Varela and Minister of Economy and Finance Dulcidio De La Guardia. “Panama is the country that will grow in the region this year and will continue to work with the country focused on shared prosperity.” Panama is expected to grow this year by 6 percent, making it the country with highest economic growth in Latin America and the Caribbean. Furthermore, poverty in the country has fallen from 40 percent of population in 2007 to less than 25 percent today and middle class has grown from 30 percent to over 40 percent. “We are proud to share our success story and share experiences,” said President Varela news conference at the end of the meeting, noting that multilateral banks “is very important to achieve prosperity with equity.” For his part, Minister De la Guardia said there is an ongoing dialogue between his country and the World Bank, especially
Source: Banco Mundial
in the areas of sanitation and social protection. “We are very pleased with the support they have given us all this time,” he said. The meeting was in the framework of strategic meeting WB executives working in Latin America and the Caribbean hold this year in Panama to set goals and work programs ahead of a regional environment of economic slowdown. At the meeting with Panamanian authorities also attended by Director of World Bank for Central America, J. Humberto Lopez and the Manager in Panama, Anabela Abreu. Current World Bank portfolio in Panama includes six projects focused on biodiversity conservation, public sector efficiency, productive inclusion and social protection, disaster risk management, improved water and sanitation and strengthening development policies to promote greater prosperity share, for a total of US $ 545.59 million. In addition, International Finance Corporation (IFC for its acronym in English) supports private sector with 15 projects totaling US $ 861.34 million in sectors such as banking, telecommunications, wind energy, higher education and the canal expansion of Panama, specifically for new set of locks. Finally, Multilateral Investment Guarantee Agency (MIGA, for its acronym in English) has authorized up to US $ 619.4 million to ensure investment in Line 1 of the Panama Metro. L&E
Photography: Capital Financiero
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WEORLD ECONOMY MIGRATION: A GLOBAL ISSUE REQUIRING A GLOBAL SOLUTION
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hen leaders of the Group of Twenty meeting in Turkey this weekend, will present heartbreaking images of displaced people fleeing countries that are prey to armed conflict and economic hardship. The escalation of refugees in recent years has reached levels not seen in decades. And these numbers could increase in the near future. Immediate priority must be to help refugees, which carry heaviest load, and too often tragic with better access to shelter, health care and quality education. Many of neighboring countries in conflict (which host the majority of refugees) have taken their absorption capacity of people to the limit. To provide additional public services to refugees, they will need more financial resources. International community must do its part. For example, with support of the IMF, Jordan has managed to adjust its fiscal targets to help meet this need. The work of countries that have done most to host displaced people is commendable. Some countries have been prepared to receive large flows of refugees and have made every effort to provide food and shelter. Others, especially among advanced countries, should consider how they can increase the number of refugees allowed. Ultimately, however, one thing is clear: no country alone can resolve the issue of refugees. We need global cooperation. The economic implications of migration.
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Source: FMI
Indeed, cross-border migration takes different forms. It includes refugees who are forced to leave their countries as economic migrants departing voluntarily in search of opportunities. The total number of immigrants has grown substantially in recent years and today represents more than 3% of the world population Regardless of the motivation, decision to leave home and move itself is difficult and can be risky. But once people complete the crossing, they resettle and find stability, with right migration policies, can have an overall positive impact for migrants, host country and the country of origin (as documented in an analysis of technicians forthcoming). Migrants can give impetus to labor force of a country, encourage investment and stimulate growth. For example, preliminary IMF calculations show that migrants in countries of European Union have a modest positive impact on growth. More importantly, migration can help address the challenges of aging populations in many developed countries. According to our research, in medium term migrants could help reduce pressures on spending on pensions and health; and in the short term, net budgetary impact tends to be relatively small. Brain and remittances drain. What happens in countries experiencing an outflow of migrants? Certainly, these countries often lose to the young and talented, which has important implications for growth. For example, this has happened in Caribbean countries that lost more than 50% of its highly skilled workforce between 1965 and 2000.
WORLD ECONOMY Remittances help offset some of these effects. Undoubtedly, they can be a source of income of much importance, giving rise to increased spending on education and health. In 2014, remittance flows to developing countries reached $ 436,000 million, more than half of total net foreign direct investment and more than three times the official development assistance. In addition, if the transaction costs of remittances were reduced further, they produce even more benefits. Estimates suggest that reducing the cost of remittances to 1% of the amount transferred could release a huge savings of $ 30,000 million a year; ie more than the entire bilateral aid budgeted for subSaharan Africa. We must give strong support to the G20 commitment towards reducing transaction costs of remittances. Policies for better integration of migrants. The key challenge is to facilitate a smooth integration of newcomers (in the case of economic migrants or refugees). Undoubtedly, there will be hardships and difficulties at the beginning, either logistical, fiscal or political, but these must be balanced against benefits in medium and long term. These concepts are not easy to implement, but are feasible. What does a well-designed integration policy?
• First, strengthening the ability of labor markets to absorb migrants, enabling immediate job search and placement services offering better jobs in. • Second, expanding access to education and training, providing education, learning the local language and job training affordable. • Third, improving the recognition of skills, by taking simple, affordable and transparent procedures for recognizing foreign qualifications. • Finally, support for migrants who are entrepreneurs, reducing barriers to new businesses and providing support through legal advice, guidance and training.
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In Sweden, for example, a refugee reception program offers job training and taught the language for a period of 24 months, together with financial benefits. The latest wave of refugees is beginning to find work, although the program will inevitably take to deliver its full benefits. A global call. Demographic forces, globalization and environmental degradation mean that international migration pressures are likely to increase in coming decades. And cross-border challenges require cross-border solutions. Therefore, extent of international politics should focus on encouraging cooperation and dialogue between countries concerned, promoting an equitable distribution of the burden, facilitating remittance flows, protecting labor rights and promoting an environment protected and safe work for migrants. The IMF also do its part by funding and capacity building. In addition, over the coming months, our analysis of this issue will be incorporated in advising on policies we provide to countries in Africa, Europe and the Middle East are facing mass movements of populations. Migration is a global issue. We must work together to solve it. L&E
WORLD ECONOMY
ECLAC SPECIALISTS ANALIZE RESILIENCE IN THE REGION OF CLIMATE CHANGE ON THE EVE OF THE PARIS COP21
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Source: CEPAL
xperts from international organizations, state institutions and research centers on 3 and 4 November participate in the headquarters of United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in Santiago, Chile, at a seminar on the resilience of territories to climate change, a few weeks after international meeting in Paris in which it is expected to reach a global agreement to tackle this phenomenon. The meeting, organized by Division for Sustainable Development and Human Settlements ECLAC with the support of French Regional Cooperation in South America, was inaugurated by Deputy Executive Secretary of regional organization, Antonio Prado, and the Ambassador of France in Chile Marc Giacomini, who agreed that poorest people are also the most vulnerable to effects of global warming. Deputy Executive Secretary noted that territories represent the closest to economic, social and environmental reality of sustainable development dimension and expression that can generate an integrated public policy approach and articulating perspectives as urban development, infrastructure and access to services public, mobility and rural-urban migration, patterns of production and consumption with low carbon, environmental protection and vulnerability to extreme events. “Not all people are equally vulnerable to extreme events that affect our region. The poorest are the most affected segments. Lack of access to resources doesn’t allow them to anticipate and react ap-
Fotografía: CEPAL
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propriately to weather catastrophes, when they are paradoxically the poorest who contribute least to environmental degradation due to lower consumption of resources,” said Antonio Prado. For his part, Marc Giacomini said that “the pursuit of adaptation to climate change goes hand in hand with the search for more equality”, “Improving both resilience to this phenomenon as the ability to overcome economic crisis are two sides of the same coin,” said French Ambassador in Chile, who advocated developing more sustainable and inclusive socio-economic patterns. France hosts from November 30 to December 11 the 21 Conference of Parties (COP) to the UN Framework Convention on Climate Change, which international community hopes to reach a binding agreement on this issue. The event will take place three months after the adoption of Agenda 2030 for Sustainable Development, which enshrines thirteenth goal of sustainable development to take urgent action to combat climate change and its effects. Today it’s estimated that global emissions of greenhouse gases are more than 60% above level of 1990. The deal is expected to close in Paris seeking that increased temperatures don’t exceed two degrees Celsius by year 2100 compared to pre-industrial values. It’s estimated that this requires, among other things, moving from about 7 tonnes per capita of carbon dioxide emitted in the world today about 2 tonnes per capita in 2050. L&E
WORLD ECONOMY
UN LAUNCHES INTERNATIONAL YEAR OF VEGETABLES : LEADERSHIP FOR BEANS, LENTILS AND CHICKPEAS
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Vegetables, -including all kinds of beans and dry peasare a cheap, delicious and very nutritious source of vital proteins and micronutrients that can be very beneficial for the health and livelihoods of people, particularly in developing countries: this was the message of UN to introduce today the International Year of Vegetables 2016. “The vegetables are important for food security of much of population food crops, especially in Latin America, Africa and Asia, where legumes are part of traditional diets are often grown by small farmers,” said Director General FAO, José Graziano da Silva.
Source: FAO
of soil, declaring inaugurated the International Year. Untapped potential. Vegetables are part of food culture and the staple diet in much of the world’s regions and are a key ingredient in many traditional national and regional dishes such as falafel, dahl and baked beans.
There are hundreds of varieties of vegetables grown worldwide. Among the most popular include all varieties of dry beans such as kidney beans, lima beans and wax beans. But they are also chickpeas, cowpeas, black-eyed peas and pigeon peas “They have been an essential part of the human diet (for more information: What are vegetables?). since -he added- centuries, and yet its overall nutritional value is not recognized and are often undervalued.” They are an affordable alternative to animal pro“Vegetables can contribute significantly to address the tein, with brings a higher cost and therefore ideal issues of hunger, food security, malnutrition, environ- for improving diet in world’s poorest areas. Promental challenges and human health,” said for his part, tein from milk, for example, is five times more Secretary General of the UN, Ban Ki-moon said in a sta- expensive than that obtained from legumes. tement read on his behalf during presentation ceremony. Because vegetables fetch prices that are double or triUnder the slogan “nutritious seeds for a sustainable ple those of cereals, have great potential to bring farfuture”, UN General Assembly declared 2016 as In- mers of rural poverty, and processing opens up additernational Year of vegetables, to raise awareness of tional economic opportunities, especially for women. its many benefits, promote production and trade, and Health Benefits. foster new, smarter uses throughout the food chain. Although small, vegetables are full of protein: twiIn a symbolic gesture after his speech, the Direc- ce those found in wheat and rice three times. tor General of the FAO planted bean seeds in a pot They are also rich in micronutrients, amino acids
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WORLD ECONOMY and vitamins B, said today that according to Direc- Moreover, to improve overall health of soil, underground tor General of FAO, are key elements of a healthy diet. vegetables promote biodiversity by creating an environment for germs, insects and bacteria of various types. Low in fat and rich in nutrients and soluble fiber, vegetables are also excellent for controlling cholesterol and Because vegetables such as group-, are genetically very didigestive health, and high iron and zinc content makes fferent, they also have great potential for adaptation to clithem a powerful food to combat anemia in women and mate change, as they allow farmers to select new varieties children. They are a key ingredient in healthy diets to and adjust production to changing climatic conditions. address obesity and prevent and manage chronic disea- Finally, its use as a cover crop and intercropping systems ses such as diabetes, coronary heart disease and cancer. -plant vegetables and other crops in a rotation- system can help reduce soil erosion and control pests and diseases. Due to its high nutritional content, beans are a staple in emergency food aid and doesn’t contain The presidents of Steering Committee of the Internatiogluten, they are also suitable for celiac patients. nal Year of vegetables, Aydin Adnan Sezgin and Nadeem Riyaz, Permanent Representatives of Turkey and PakisBenefits for animals and the environment. tan to FAO, delivered speeches at start and close of today’s But vegetables not only benefit human health: cattle ceremony, which also included a presentation by Soul of also improve and promote healthy soil and biodiversity. Mahmoud, Director General of the International Center Residues legume crops can be used as feed for for Agricultural Research in the Dry Areas (ICARDA). increasing concentration of nitrogen in the diet, improving health and growth of animals. Recent international years have been devoted to floors, family farming and quinoa. L&E Graziano da Silva stressed in particular how the nitrogen-fixing properties of lvegetables can improve soil fertility, which in turn increases productivity of agricultural lands and eliminates reliance on synthetic fertilizers. This leads to a smaller carbon footprint and indirectly to lower emissions of greenhouse gases.
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WORLD ECONOMY
REDUCE INEQUALITY AND FUND EDUCATION ARE STILL KEY CHALLENGES, SAYS OECD
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ccording to a new report by the OECD, governments must increase their efforts to combat persistent inequality in education and improve efficiency of their education systems to ensure that every child, whatever their environment, has a chance to fully achieve their potential and benefit from a good education. The Education at a Glabce 2015 reveals rapid progress to expand educational opportunities over past 25 years now, 41% of adults between 25 and 34 years old with tertiary education. However, there are still inequalities in this area, with serious consequences for labor markets and economies. In 2014, less than 60% of adults without a high school education were employed, compared with 80% of adults with tertiary education. “The dream of ‘quality education for all’ hasn’t yet become reality” said Angel Gurria, OECD Secretary-General, in the report in Paris. “Lack of quality education is the most powerful form of social exclusion, as it prevents people benefit from economic growth.” Read the speech (English). This year’s edition of Education at a Glance 2015 also analyzes problems of financing education. Between 2010 and 2012, when GDP began to recover growth in most OECD countries, public spending on institutions of primary to tertiary education fell
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Source: FAO
by more than one in three OECD countries, including Australia, Canada, Slovenia , Spain, United States, Estonia, France, Hungary, Italy and Portugal. Between budget cuts implemented in primary and secondary levels, most governments have chosen to reduce teacher salaries instead of the number of students in groups. However, the OECD PISA program reveals that countries with high performance, such as Finland, Japan and Korea, prioritize teaching and teacher above infrastructure and group sizes.
WORLD ECONOMY In the case of Mexico, Gabriela Ramos, Special Adviser to the Secretary-General, Chief of Staff and Sherpa OECD stressed that the country has made further progress in implementing educational reform. “Mexico is registering significant progress in implementing educational reform, but other countries, including some Latin Americans are moving faster in order to increase educational level of population. We must continue to promote these efforts and make education a high national priority, not just the government but society in general,” said during his presentation of results of Education at a Glance 2015 for Mexico. In Mexico, enrollment in upper secondary education and percentage of population that has reached this level of education have increased, but levels are still low compared to other OECD countries and partner countries. From 2005-2012 population of 25-34 years in Mexico had reached upper secondary education increased by 8 percentage points, from 38% to 46%. However, this percentage is much lower than OECD average of 83%. Only one in three adults aged 25 to 64 years old reached that level of education.
countries as well as Saudi Arabia, Argentina, Brazil, China, Colombia, Costa Rica, Russian Federation, India, Indonesia, Latvia, Lithuania and South Africa are analyzed.
Key Aspects Educational Achievement • About 85% of young people today completed secondary education during their lifetime. In all countries, young women are now more likely to do so than men. The biggest gender gap seen in Slovenia, where it is estimated that 95% of young women finish secondary education, against only 76% of young men (Indicator A2). • About 41% of adults between 25 and 34 years of OECD countries now have college education. The proportion is 16 percentage points higher than that of adults 55-64 years of age with a similar educational level. In many countries this difference exceeds 20 percentage points (Indicator A1).
• About 41% of adults between 25 and 34 years of OECD Adults with higher educational levels in Mexico are more countries now Have college education. The proportion is likely to be employed than adults with less education. In addi16 percentage points higher than That of adults 55-64 years tion, relative earnings of graduates increases with educaof age with a same educational level. In many Countries esta tional level, more in Mexico than in most OECD countries. Exceeds 20 percentage points difference (Indicator A1). On equality, Mexican women are equally represented at all levels of tertiary education, including doctoral level, where nearly half of new graduates were women in 2013. However, percentage of young women NEET (not in employment or education) is still considerably higher than that of men.
• On average, 83% of people with tertiary education are employed, against 74% of those with high school education or post-secondary non-tertiary education, and 56% of those with a lower educational level and higher education (Indicator A5) .
Education spending
Regarding expenditure, Mexico spends a percentage of GDP similar to that of other OECD countries education, • OECD countries spend on average USD but spending per student is still low in absolute terms. 20,220 per student per year from primary to tertiary education end: USD 8,247 per primary stuIn Education at a Glance 2015 comparable national statisdent, USD 9,518 per secondary student and US $ tics that measure the state of education in 46 countries are 15.028 per student at tertiary level (Indicator B1). presented. Education systems of the 34 OECD member
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WORLD ECONOMY • The percentage of private funding in tertiary education increased during the past decade. About two-thirds of private funding at tertiary level comes from households through payment of tuition. Tuition fees are higher than USD 2,000 in more than half the countries with available data, more than USD 4,000 in Australia, Canada, Korea and New Zealand, over USD 5,000 in Japan and over USD 8,000 in United Kingdom and United States (Indicator B5).
• More than half of children enrolled in programs of early childhood development attending private institutions. This can generate large financial burden on parents, even when government subsidies (Indicator C2) are offered.
• In most OECD countries, education now begins for most children long before they turn 5 years old. Around 74% of children under 3 years are enrolled in education across the OECD and 80% of countries of European Union that are members of the OECD (Indicator C2).
• Statutory salaries for teachers with 15 years of experience are USD 41.245 average in primary education, secondary USD 42,825 and USD 44,600 in upper secondary education (Indicator D3). L&E
In the classroom
• Students receive an average of 7.570 hours of compulsory education in primary and secon• In 2012, OECD countries spend an average of 5.3% dary levels. Students in Denmark have the higof GDP in primary to tertiary education (not including hest number of hours (over 10,000) and Hungary programs distributed by educational level). Public fun- the lowest (less than 6,000 hours) (Indicator D1). ding covers 83.5% of all spending on educational institutions from primary to tertiary. Between 2010 and • The average primary education group in the OECD 2012, public spending on education fell by more than consists of 21 students and 24 secondary. Larger the one in three OECD countries, including Australia, Ca- group size, less time teachers have to devote to teanada, Slovenia, Spain, United States, Estonia, France, ching and engaged in maintaining order in classroom: Hungary, Italy and Portugal (B2 and B3 Indicators). an additional student will join a group of average size is associated with a decrease of 0.5 percentage points in Education in early childhood time devoted to teaching and learning (Indicator D2).
• Enrolment in pre-primary education increased from 52% of three year olds in 2005 to 72% in 2013, and 69% of children aged 4 in 2005 to 85% in 2013. The enrollment of children 4 years increased 20 percentage points or more in Australia, Chile, Korea, the Russian Federation, Mexico, Poland and Turkey between 2005 and 2013 (Indicator C2).
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ENVIRONMENTAL CAPSULE PRESENTATION OF STUDY: “ZERO EMISSIONS IN 2050 IN LATIN AMERICA AND THE CARIBBEAN”
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n November 25, 2015 was held at Sheraton Hotel, Salon La Caleta, Panama City, the Forum called “Moving toward a clean economy: Role of Private Sector”. This event organized by SUMARSE NGOs, UNEP, through Regional Portal Project for Technology Transfer and Action on Climate Change in Latin America and the Caribbean (REGATTA), co-funded by Spanish Cooperation, aimed the presentation of the study “Zero Emissions in 2050 in Latin America and the Caribbean” by climate change expert and consultant to UNEP, Walter Vergara.
Maybé Mendieta - Attorney maybe.mendieta@rbc.com.pa
- Transport; Y - Land use. In this sense, the study provides some measures considered to eliminate net emissions, namely:
a. ‘Decarbonization of electricity generation: renewable, network integration, distributed generation; b. Electrification of transport sector; c. Transformation of land use emission source emission storage: avoided deforestation, reforestation, restoration, low emission agriculture; Y This first Latin American study on Zero Emis- d. Industrial modernization. “ sions, authored by Mr. Vergara, will be presented at next Conference on Climate Change As noted by the expert, efforts made by Latin (cop21) to be held in Paris in December 2015. American States for implementation of the above measures is allowing zero (0) emissions by midDuring his speech, Mr. Walter Vergara spoke century; while highlighting importance of deaabout results of this study showed that empha- ling with financing required to fulfill this goal, sizing “decarbonisation of Latin America 2050.” but still considered to reach zero carbon mean for region: energy and food security; improved air He noted that growth in use of carbon in the quality, lower costs of services and other benefits. region, which in last decade He has represented a 13% response to three (3) main areas: In view of above findings and because it is a topic - Electricity generation; of great importance for private sector, completed
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ENVIRONMENTAL CAPSULE the intervention of Mr. Vergara, he was begun the establishment of a multisectoral panel where representatives of UNEP, APEDE, JOIN and the Foundation Panama Green Building Council, in came to the conclusion that to achieve the goal set in study requires states to implement policies not only mitigation but also adaptation measures to reduce emissions where possible element which could be of possible agreements at the next Summit of Paris, provided there is the will of States to realize them. Finally, it’s necessary to reiterate that all measures that countries in region to implement for reduction of emissions in general, would be contributing to increased biodiversity, soil restoration and recovery of different bodies of water (seas, rivers, lakes), bringing improvements in production; hence importance that everyone aware of negative effects posed by climate change and the need to protect and safeguard the environment and natural resources.
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In conclusion, regardless of outcome of summit to be held in Paris this coming December, Latin American countries should have national environmental policies and implement them aimed at preserving human life and achieve sustainable development. L&E
EDUCATION CAPSULE
THE NATIONAL HOLIDAYS
T
Alexander Canto - Elementary teacher / Supporter of the Department / File archivo2@rbc.com.pa
hroughout our history there have been flag, as well as public institutions and private companies many decisive events that marked consolidation of decorate their facilities, paying tribute to our country. freedom of our homeland through different struggles undertaken by our ancestors legacy we must not forget. Note that despite various conflicts that arise during the course of the year between teachers’ unions Our national holidays are one of the most eagerly and Ministry of Education (MEDUCA), by the awaited by Panamanian people, dates where important poor state in which they are still many campuses toevents such as separation of Panama from Colombia day, among other problems, was ineligible to vacommemorated; day of national symbols; cry of inde- rious protocol events and patriotic festivities will be pendence in the Villa de los Santos and independence held in all schools, which demonstrated that patrioof Panama from Spain, who managed our events sove- tic spirit still prevails, both teachers and students reignty as a country, which is why we must promote and in this time of great importance for the country. maintain patriotic sense, paying homage every year. Now it’s important to further promote and strenNovember is definitely the month of the country and this gthen the sense of patriotism among students year precisely commemorating 112 years of separation in school, therefore we must maintain a senand independence 194, reason why all students in diffe- se of belonging and not forget heroes who fought rent schools and nationally independent bands took to for an independent country as we are today. main streets of the city pay honor to the sound of drums and bugles, carrying uniforms galas, as well as typical Teachers in all educational establishments encouradresses, expressing patriotic fervor and recognition to ge you to continue to encourage in students patriotic those who risked their lives for country’s sovereignty. sentiment that characterizes us and is reflected every year in the parades and go transmitting those events Importantly, most prominent, for their effort and dedi- throughout our history helped a country free and indecation to study during school year, students have privi- pendent as we are today, together make homeland. L&E lege of carrying national symbols, in recognition of their good academic performance, as well across the country dressed in red, blue and white allusive colors to our
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ILLUSTRIOUS PANAMANIAN RUBÉN DARÍO CARLES GRIMALDO “CHINCHORRO”
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fter 5 months of the death of our Lisbeth Martéz - Secretary beloved “Chinchorro” Carles, we want to make a small lisbeth.martez@rbc.com.pa tribute to share excerpts from the homily at his funeral. Where his personality, career as a public official, political, family man, those qualities that made him a role But we can’t talk about Chinchorro Carles, not to mention model and a worthy example to follow is emphasized. his beloved wife Querube. Don Ruben left us many lessons we must not forget, and above all a great love of country. “Funeral Homily of Chinchorro Carles Monsignor José Domingo Ulloa, Metropolitan Archbishop and who presided over the funeral of State” … Who was Ruben Dario Carles Grimaldo?
And it shouldn’t surprise us, because who has managed to be a good husband is because he was a good son, from his youth Dario showed his sensitivity to national problems, their intellectual capacity didn’t detract from its simplicity and humility, their titles aren’t felt in its relationship with people, but in the workplace, professional field.
Today defined as an influential banker, economist and Panamanian politician of XX and XXI centuries. SuNo doubt we will have several answers to define a real rely it is a definition that many could point as successful. man, simple, we can identify with his “kitty” tie with its husky tone of voice and imposing; with direct talk. A man However, what has made it possible, in our Ruben Daproud of his roots, so that his nickname was “Chinchorro”. rio Carles Grimaldo today national government to give
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ILLUSTRIOUS PANAMANIAN him a state funeral has been their integrity, consistency, transparency, honesty. Clearly this was marked by growth at home that his parents gave him Ruben Dario Carles Oberto and Sixta Grimaldo Guardia de Carles. We need more families with this ethical conviction of life, with the ability to teach to love his neighbor as well. Here we find the extraordinary value of family. … A man who by his transparent and upright posture lived in exile not only once, to defend democracy and interests of the nation.
authenticity, resisted all surface that requires “political marketing” no longer him, stuck to what it always was. This is also a very profound teaching is needed to resume in our partisan political activity. We can’t continue with slogan “the end justifies the means” and that is why the political class has been affected its credibility, because in the end the people can recognize lies and empty rhetoric.
We can say with certainty that this understood, he preached and lived very well in his life Chinchorro Carles. He never accepted, nor sponsored or allowed an act of corruption and as a citizen and as a public official. He didn’t mind pressure or epithets of “stingy”. He assumed with integrity because he had a very clear responsibility to delicate task of caring, and ensure adequately invest state money. Welcome the fact that building of the Comptroller bearing his name and hopefully this print in spirit of civil servants, that look loyalty and commitment in service to common good.
This farewell invites us to all Panamanians do our duty of community service, as Chinchorro did.
Chinchorro Carles, beyond being a thorough politician, a successful economist, an honest officer and, why not say, a statesman, was a man who loved his counIt was a public servant who didn’t hesitate to put their talents try, loved his wife, but this loved and embraced hir faith. to bring in works such as creation of Colon Free Zone in New Tax for strengthening national treasures, to name some ways. His 94 years of life were witness of Christian life lived to “austere” style, beyond worrying about the look but by being. An official who deeply values every penny of state resources, as the most zealous guardian because for him A man with an ethical and a moral test start in difficult it was unthinkable, but it works well in the “logic of the circumstances, but now the crown as Panamanian decorrupt” there take position in the government or rela- livered to their homeland, returned to his family, devotions with an official to steal money from public purse as ted to his faith, so we pray to have crown of sons of God. if they were personal inheritances. And cases of corruption allegations put us in evidence that not a few officials Our country today, at this historic moment, needs share this “logic”, rather than having the respect and care “more Chinchorros Carles”, able to put all their talents, monies collected the taxes we pay citizens to aggrandize to stick the belt of austerity to properly manage our ascountry and contribute to common good Panamanians. sets, to commit ourselves to building a more just, equitable and united country, where there are more opIt’s worth remembering the words of our first Panama- portunities for all, especially those excluded from the nian Cardinal Jose Luis Lacunza, who noted that co- wealth and development that is generated in our country. rruption, fraud and embezzlement are unacceptable … robbing the poor. Solidarity with the poor should lead If we all do our duty with dedication with which fulfilled us to do things right, both private and state property. Don Chinchorro, our country shouldn’t fear for their future.
Even his candidacy for president, made him lose its
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This commitment will, together with our prayer, the best gift, the best compliment we can do who has just left us. May the Lord help you, him and us in this hour. Let us give us courage and him rest. Let us and he gives us peace. And remember when we die alone and forgotten Chinchorro remembering when everyone will always fight for freedom and democracy. L&E
FASHION
Nadia Chang - Strada Eleganza rbcweb@rbc.com.pa
ITEMS THAT EVERY MAN MUST HAVE Christmas time and New Year approaching, most of the time we use this time to give our loved ones, so I made this list of ITEMS THAT EVERY MAN MUST HAVE. In this way you can investigate fouled this special staff we give away, as there are expensive things, there are simple things you shouldn’t miss in the house of every man.
1. A dress or suit of excellent quality (cutting, manufacturing and fabric).
11. A secret ingredient to make their dressings and surprise your guests.
2. A good bottle opener.
12. A good coffeemaker.
3. A good pair of headphones.
13. A blue blazer quality.
4. A quality wristwatch.
14. A good adapter.
5. A good chef ’s knife.
15. A bottle of good whiskey to take a break and bring on special occasions.
6. A good coffee table book, to invite our guests to take and leaf through. 7. A Necktie of excellent quality. 8. A good pen. 9. A tool box with metric tape, screwdrivers and wrenches. 10. A good camera.
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16. A good set of glasses of beer. 17. A good cigar lighter, even if you don’t smoke. 18. Cash available for emergencies.
FASHION 19. A good pair of jeans.
33. A good pair of gloves.
20. A comfortable terry robe to pamper Sunday morning.
34. A good copy of your favorite book. 35. An umbrella of excellent quality.
21. Slippers for use with terry bathrobe.
36. A good leather wallet.
22. A good pair of sunglasses that pass the test despite the passing years.
37. A good and true piece of art, no matter how small. 38. A travel kit (to carry razor, deodorant, soap, etc). 39. A good card game.
23. A good set of desktop. 24. A comfortable and special chair that is only yours. 25.A leather belt of excellent quality.
40. Passport (it go or not to use, must always be available and valid). 41. A good cast iron pan.
26. A fixed dumbbells. 27. A good pair of boots 29. A good steakhouse.
28. A good pocket knife.
30. A good cup of coffee, without any company logo of those who give of propaganda. 31. A good pair of sneakers. 32. A good weekend bag.
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I hope this list will serve as a great help, remember to stay in a place where we remember, so that we mind for gifts for other occasions than Christmas
SPORTS CAPSULE
Albin Rodríguez albin.rodriguez@rbc.com.pa
INTERNATIONAL
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How much taxes do football players pay?
lite athletes Tax burdens are often debated in specialized media each time signing of a ‘crack’ is produced. Rights, gross or net wages are concepts that then hit headlines. Also, from time to time, they provoke comments from fans, almost always negative to what is considered excessive privileges of those who enjoy lucrative contracts. Spain, for a few years, managed to attract many stars thanks in large part to tax benefits covered by the Act 35/2006, known as ‘Beckham law’ which allowed athletes selected by Spanish clubs taxed as residents, that is taxed at fixed rate of 24%, well below the maximum of 43% which applied to resident taxpayers in excess of 120,000 euros and 45% for those earning more than 175,000 euros income. To take advantage of what was a de facto tax deduction in income tax in order to attract talent, not enough to have lived in Spain for ten years prior to change of tax residence and that this should occur as a result of an employment contract . It’s further required that professional develop its work in Spanish territory and income earned by work abroad didn’t exceed 15% of the total of consideration received by athlete or 30% in case of income derived from activities in a company located outside Spanish territory.
and foreign athletes. For example, while Raul forward by then Real Madrid, should be taxed at a rate of 45%, England’s David Beckham, who made his name with the rules and with whom he shared front wardrobe, made to 24% in first six years of his stay in Spain in his case, he didn’t exhausting-. The ‘bargain’ was evident. Absence of harmonization at European level. The government of Jose Luis Rodriguez Zapatero, but not refusal of football clubs, alleging that arrival of ‘cracks’ to Spain would be hampered on and threatened to go on strike therefore amended ‘Law Beckham’ so that as of January 1, 2010 those athletes earning more than 600,000 euros per year again unto taxed at 43% in income tax while rest would follow by 24%. Yes, measure wasn’t retroactive, so stars like Cristiano Ronaldo, Kaka or Benzema, signed to Real Madrid in summer of 2009, all with salaries much higher than that amount, they could continue to enjoy a regime special prosecutor.
Problem is compounded in a global environment as sports world, where stars are object of desire of leading clubs willing to throw the house out the window to take over its services. The different existing tax systems in the European Union may affect transfer dance, as has The system results in large differences between Spanish shown transfer of Colombian striker Radamel Falcao,
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SPORTS CAPSULE who played last two seasons at Atletico Madrid, Monaco, a former top team in France but that ended a few weeks ago to its particular ‘via Crucis’ to win promotion to the top flight of French league and is trying to form a champion squad thanks to checkbook Russian tycoon Dmitry Rybolovlev and a tax system most advantageous. However, the Spanish remains more competitive in this area than other majors like English, where there is a progressive tax with a marginal rate of 50%, while in the Premier League there are certain exemptions such as those derived from the days worked in abroad.
determines that player defrauded a total of 587,822 euros in 2011 and 968,907 in 2012. The complaint relates different operations performed by player, which includes purchase of the company based in Madeira, not to declare 1.8 million obtained by image transfer during 2011 and 2012. for the prosecution, Mascherano should pay taxes in Spain, where the “totality” of their income, “with regardless of where they obtained there and whatever the residence of payer.
The prosecutor accused Mascherano of defrauding 1.5 million to Treasury.
LOCAL
The prosecution has filed a complaint against Argentine international Javier Mascherano of FC Barcelona for having defrauded Treasury 1.55 million euros simulating transfer of their rights to an instrumental company located on the island of Madeira (Portugal), where pay less taxes than in Spain. Gava judge has decided to admit the complaint process and is pending subpoena as a defendant to the athlete.
Bittersweet qualifying for Russia 2018!
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he national team of Panama in Kingston Jamaica surprise by winning 2-0 in visitor status in first round of qualifying Group B of CONCACAF. The result is both first victory of Colombian coach Hernan Dario Gomez since joining the bench.
However, it’s possible to reach an agreement between the prosecution and defense lawyers exercised by David Aineto and Diego Artacho, since last September, player paid First entry of the set of Panama on Jamaica took 42 minutes through a free kick with right leg by Armando Cooto the tax office debt, plus interest at near 200,000 euros. per, after a foul on Alberto Quintero by Adrian Mariappa.
Lawsuit contends that player doesn’t include in their income tax returns in 2011 and 2012 revenues from exploitation of his image rights, as it should have done with resident in Spain. Prosecutor Pedro Castro specifies that in order to circumvent this generally taxable, the player has developed a strategy of two distinct behaviors in its execution but in its common purpose: not to declare income derived from the Nike brand through a company domiciled in US and simulate the transfer of their rights to an instrumental company based on the island of Madeira.
Team of Panama, which had at least three more chances to score in first half against Jamaica, extended their lead 51 minutes with an own goal from Morgan Westtley in when he tried to block a cross from Blas Perez Quintero. Jamaica moved his chips to reinforce attack giving minutes to newly convened Clayton Donaldson, Birmingham City striker of the English second division, entered by Mattocks as Alvas Powell, who replaced Watson. Jamaicans took claw in final minutes and tried several arrivals change history of the game, which won Pana-
Such a strategy of concealment, added the prosecutor, ma thus ending a long run of 12 games without a win.
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SPORTS CAPSULE Panamá vs Costa Rica The Costa Rica national soccer team won 2-1 away to Panama for the CONCACAF qualifying with a view to 2018 World Cup in Russia. Bryan Ruiz materialized 65 minutes the first goal for Costa Rica in Rommel Fernandez Stadium in Panama City. Costa Rican striker pounced on a fumble and an oversight of defense to undermine the goal defended by Jaime Penedo. The cast of Costa Rica would attack two minutes later, with an accurate shot by Marco Urena, who mocked the Panamanian goalkeeper. “The Red” of Panama got off after 71 minutes with a shot from striker Luis Tejada. With his second victory, Costa Rica leads with six points. Panamá meanwhile, adds three. Jamaica and Haiti completed the area, which determines two berths to final round of CONCACAF (Confederation of North, Central American and Caribbean Soccer Association).
2016 Centennial Cup playoff Panamanian Football Federation (FEPAFUT) announced a list of 35 players eligible to play playoff game against Cuba for a place in America Centennial Cup. This list, which is not an invitation nor a call for workouts, handed the coach Hernan Dario Gomez to FEPAFUT. Panama and Cuba, and Trinidad and Tobago and Haiti, two meetings should play playoff on 8 January in Rommel Fernandez Stadium in Panama City. The winners of both matches joined the ten teams from CONMEBOL and CONCACAF will play for tournament which aims to celebrate centenary of the South American confederation.
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List of players given is as follows: - Jaime Penedo Portero SC - José Calderón Portero CD Platense (HON) - Adolfo Machado Defensa Saprissa (CRC) - Felipe Baloy Defensa Atlas (MEX) - Harold Cummings Defensa Ind. Sante Fe (COL) - Roderick Miller Defensa San Francisco (PAN) - Amir Murillo Defensa San Francisco (PAN) - Fidel Escobar Defensa Sporting SM (PAN) - Leonel Parris Defensa Tauro FC (PAN) - Luis Henríquez Defensa Tauro FC (PA) - Éric Davis Defensa FK DAC 1904 (SVK) - Richard Dixon Defensa Chorrillo FC (PAN) - Gabriel Gómez Volante Herediano (CRC) - Valentín Pimentel Volante Plaza Amador (PAN) - Armando Cooper Volante Árabe Unido (PAN) - Aníbal Godoy Volante SJ Earthquakes (USA) - Alberto Quintero Volante Lobos BUAP (MEX) - Amílcar Henríquez Volante América de Cali (COL) - Josiel Núñez Volante Plaza Amador (PAN) - Nelson Barahona Volante Alianza Petrolera (COL) - Miguel Camargo Volante Chorrillo FC (PAN) - Édgar Yoel Bárcenas Volante Árabe Unido (PAN) - José González Volante Árabe Unido (PAN) - Josimar Gómez Volante Árabe Unido (PAN) - Renán Addles Delantero Árabe Unido (PAN) - Ricardo Buitrago Delantero Juan Aurich (PER) - Luis Tejada Delantero Juan Aurich (PER) - Roberto Nurse Delantero Dorados (MEX) - Rolando Blackburn Delantero Comunicaciones (GUA) - Abdiel Arroyo Delantero Árabe Unido (PAN) - Blas Pérez Delantero FC Dallas (USA) - Darwin Pinzón Delantero Sporting SM (PAN) - Sergio Moreno Delantero Chorrillo FC (PAN) - Ismael Díaz Delantero Porto FC (POR) - Gabriel Torres Delantero Colorado Rapids (USA)
SPORTS CAPSULE Romel Fernandez Listo para Partidos de Repechajes. Court, dressing rooms and boxes of Rommel as well as lodging and transportation are reviewed by officers of the Confederation of North, Central American and Caribbean Association Football (CONCACAF) conducted an inspection of stadium Rommel Fernandez in order to match playoff that will last two berths to the America Centennial Cup.
Final results of the Rugby World Cup 2015 Jonathan Forget Assistant Department of Archives For the third year the All Black team won the Rugby World Cup 2015 in London and broke new record in history of rugby.
When they arrived at the airport in New Zealand, Air New Zealand company made them a welcome addition to his team, which toured the Next January 8 Panama will host meetings bet- city showing his countrymen 2015 World Cup.
ween Trinidad and Tobago and Haiti and between Panama and Cuba whose winners will accompany already qualified and invited to memorial tournament for the centenary of the South American Football Confederation (CONMEBOL) that will play the United States in July 2016.
The match was very difficult against Australia because it has a strong team, but difference is that the All Black has a stronger defense lineup, found enough clearance between players to score points, the final score remained 34 to 17. The second party was in London for the third, fourth place was South Africa against Argentina, final score remained 24-13.
Also a visit to Panama in CONCACAF offi- The captain of the third line of the All Blacks, Richie McCaw, cials will take advantage to see everything re- 34, announced his retirement to reporters in New Zealand. lated to transportation and accommodation   of the four teams as well as training venues. The visitors held a meeting prior to inspection with Pedro Chaluja, FEPAFUT president, who was accompanied by Vice President Ramon Cardoze, and general secretary, Jorge Aued; He was also present Rolando Gonzalez, vice president of PANDEPORTES. L&E
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CULTURAL CAPSULE
Mariela de Sanjur mariela.sanjur@rbc.com.pa
Activities for December Theatre: • Circulo Theater: until December 6: Hands of Stone KO Musical. • Theatre Station: Who stole Santa’s cookies? from 4 to 20 December. • AnayansiAtlapa Theatre: Ballet “The Nutcracker” 28 and December 29. • Teatro La Quadra: A Streetcar Named Desire, until 6 December. • ABA Theatre: A hard frost from 10 to 20 December Christmas. • ABA Theatre: A Christmas Carol December 22 to January 3
Operas: • The Magic Flute December 12 at Miraflores Locks Theatre.
Fairs and Festivals: • 1st Festival of music school bands, December 13 Mara-
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cana Stadium. • 1st. National Meeting of “LIVE COMMUNITY CULTURE” From Wednesday 2 to Sunday December 6 in Volcan, Chiriqui. • 12 to 15 Highlands Fair, Volcan Chiriquí. • December 31: Feast of Dolls - David Chiriqui.
Sports: • Ice rink “Christmas Ice World”: located in coastal strip opposite Extreme Planet, will be open to public from 10:00 am to 10:00 pm, admission will cost B/.10.00 for 30 minutes, fee that includes a locker and a pair of skates per person. • II Marathon George 2015, 13 December City of Knowledge - Clayton.
Museums and Exhibitions: • Photo exhibition “Colon” INAC Gallery in Colon until 17 December. • Art Auction to benefit Sembrarte Foundation. Thursday, December 3, 8:00 pm Old Le Chateaubriand. • December 11-12: Teleton 20-30. • Alfredo Sinclair in the MAC signals of time, inaugurated
CULTURAL CAPSULE Tuesday, December 1, at the Museum of Contemporary Art.
Concerts and performances: • “CARLOS GARNETT & FRIENDS” Tuesday, December 1, Amador Theater. 8:30 p.m. • Romeo Santos in Figali Concert Square, December 2. • Les Miserables 2 and 3 December at the Amador Theater.
• Carols by Candlelight on December 12 at 7:00 pm in Mirador del Pacifico in coastal strip, donations will be donated to the Santo Tomas Hospital and Vison of Hope. Reserve your seats and candles. carolspanama@gmail.com / 6615-6666. • Arabized VIVALDI: The 4 Seasons. Sunday, December 13. City of Knowledge Ateneo, • Christmas Concert “LET THE PORTAL” Tuesday, December 15. Teatro Anita Villaláz (Old Town) 8:00 p.m. • He is here, Musical Christmas December 20, Amador Convention Center. • Party 2015 December 31, Hotel Panama. • Suarez Brothers Circus, from 25 December at Balboa Avenue.
Activities and festivities: • “OMAR Alfano” in concert, December 3 at Megapolis Convention Center. • “DISNEY ON ICE” (Fantastic Worlds) from Friday December 4, 2015. Arena Roberto Duran • Omar Geles, intimate, with Samy & Sandra, December 4, Latitude 47 • Urban Xmas Bash, December 5 in Convention Center of Amador. • “ELECTRO DISCO FLASHBACK” Monday, 7 December 2015. Islas ATLAPA. • “Caminando” Ruben Blades, December 7 Chiriqui Mall. • Jazz in Bethlehem, 10 and 11 December at Teatro Circulo. • Concert for Human Rights: A voice, an instrument, an action. Convention Center of City of Knowledge, December 10 at 7:30 pm Free admission.
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• December 1: Teacher’s Day. • December 2: International Day for the Abolition of Slavery. • December 3: Day of Persons with Disabilities. • December 6: Christmas Parade “magic moments” Coastal Strip. 1:00 p.m. • December 6-14: Hanukkah or Festival of Lights. • December 8: Immaculate Conception of the Virgin Mary, Mother’s Day. • December 10: day of Human Rights. • December 12: Our Lady of Guadalupe. • December 20, 26 years after the invasion of the United States to Panama. • December 21: Winter Solstice. • December 22: Portobelo National Park Foundation.
CULTURAL CAPSULE •
day January 4th to Thursday, February 4, 2016. Gram Danse. Info: 203-6287. • “HAPPY Veranito” From January 11 to February 4 Petit Studio Moliere Info: 209-4443. • Summer School “IMPROVISATION THEATRE FOR CHILDREN” From January 16 to March 12. Moliere Petit Studio. • “FREE CLASSES” Painting-Dance-Dance Folk-mask making. Panama university. (VAE) Coordination of Culture 523-7204 / 7205.
December 24: Christmas Eve. • December 25 Nativity of the Lord Jesus. • December 27: John, Apostle and Evangelist. • December 27: Day of the Holy Family. • December 28: Day of the Holy Innocents. • December 30: Foundation of Camino de Cruces National Park. • December 31: New Year’s Eve.
Summer courses: • “SUMMER COURSE “(theater classes) Friday, January 15, 2016 Teatro ABA. • “SUMMER MUSICAL” Tuesday, January 12, 2016 Academy of Music in Panama. • “SUMMER XIELO” From Mon-
• ASTROCAMPING SUMMER 2016. This is an activity for people of all ages focused on teaching astronomy. The scheduled date for the event is on Saturday 30 and Sunday January 31, 2016, at premises of Astronomical Observatory of Panama-UTP in the Regional Center of the Technological University of Panama in Cocle (Penonome). At a cost of $ 17.00 per person.
Alianzas alrededor del Mundo Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA Machado Associados Advogados e Consultores- BRASIL DSN Consultants Inc- CANADÁ Lewin & Wills Abogados- COLOMBIA Rivera, Bolívar y Castañedas- PANAMÁ Espinosa & Asociados- CHILE Lawnetworker S.A. Asesores Legales- ECUADOR Peter Byrne & Associates- ESTADOS UNIDOS Machado Associados Advogados e Consultores- ESTADOS UNIDOS Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO Estudio Rubio Leguia Normand & Asociados- PERU Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO Pellerano & Herrera- REPÚBLICA DOMINICANA Alvarado & Asociados- NICARAGUA Torres, Plaz & Araujo- VENEZUELA Facio & Cañas- COSTA RICA