Magazine L&E November 2014

- PANAMA AGAINST INCLUSION IN FATF (GAFI) GRAY LIST - Impact of designation of the Comptroller and attorney General in cases of patrimonial injury and unjustified enrichment - Administrative attorney of manifest around revocation of administrative contracts

ISSN 1726-0485 NOVEMBER EDITION 2014

www.rbc.com.pa

Colaboradores en esta edición José Javier Rivera Alberto Diamond R. Rafael Fernández Lara Lucila Rivas Maybé Mendieta Giovana del Carmen Miranda Alexander Canto Albin Rodríguez Mariela de Sanjur Augusto García CONSEJO EDITORIAL José Javier Rivera

Giovana del C. Miranda

Portada y Diagramación: Virginia Medina Fotografía - Mariela De Sedas de Sanjur

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CONTENT Editorial 6. IMPACT OF DESIGNATION OF THE COMPTROLLER AND ATTORNEY GENERAL IN CASES OF PATRIMONIAL INJURY AND UNJUSTIFIED ENRICHMENT

Invited Writer 7. PANAMA AGAINST INCLUSION IN FATF (GAFI) GRAY LIST Norms of Interest

9. ADVISORY COMMITTEE ON ECONOMIC AND FINANCIAL AFFAIRS 9. 100 YEARS OF THE PANAMA CANAL COMMEMORATIVE COIN 10. SUSPENSION OF IMPORT OF FIREARMS IS EXTENDED 10. NATIONAL ASSESSMENT OF RISK FOR THE PREVENTION OF MONEY LAUNDERING 11. RESOLUTIONS APPROVED BY THE COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION

Consult, Doctrine and Jurisprudence 12. PANAMA-PACIFIC SPECIAL ECONOMIC AREA: WHO MAY QUALIFY FOR THE SCHEME?

15. ADMINISTRATIVE ATTORNEY OF MANIFEST AROUND REVOCATION OF ADMINISTRATIVE CONTRACTS

17. NOTARIES OF CHORRERA MUST REMAIN VISITED BY THE GOVERNMENT OF PANAMA

18. THE IMPORTANCE OF RESPECT FOR CONSTITUTIONAL GUARANTEES AND DUE PROCESS IN CRIMINAL CAUSES

Polítics 21. THE ERA OF MILITARY REGIMES

CONTENT Panamanian Economy 24. COMMENT ON NATIONAL PRICE INDEX URBAN CONSUMER OCTOBER 2014 25. MONTHLY INDEX OF ECONOMIC ACTIVITY 26. MAIN ECONOMIC MONTHLY INDICATORS 27. PANAMA CANAL REACHES RECORD OF 963 THOUSAND TOURISTS IN CENTENARY YEAR

28. MEF PRESENTS THIRD QUARTER FISCAL BALANCE 2014 CURRENT SAVINGS FUND ALLOWED 32.5% CAPITAL SPENDING

World Economy 29. COUNTRIES OF THE REGION APPROVED START THE NEGOTIATION OF A COMMON AGREEMENT ON ACCESS RIGHTS IN ENVIRONMENTAL MATTERS

29. DESPITE PROJECTIONS US ECONOMY IS GROWING STRONGLY 30. CAMBIO CLIMÁTICO Y SU INFLUENCIA EN LA ECONOMÍA Educational Capsule 32. FERVOR OF NATIONAL HOLIDAYS AND A NEW DIALOGUE BETWEEN MEDUCA AND TEACHERS

Sports Capsule 34. PLINIO CASTILLO RUIZ RECOGNITION FOR 35 YEARS FOR MINOR BASEBALL Cultural Capsule 35. ACTIVITIES OF NOVEMBER AND DECEMBER

IMPACT OF DESIGNATION OF THE COMPTROLLER AND ATTORNEY GENERAL IN CASES OF PATRIMONIAL INJURY AND UNJUSTIFIED ENRICHMENT

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José Javier Rivera - Abogado jjrivera@rbc.com.pa

t was reported locally and internationally information on property and funds in banks in the city or abroad who have different hierarchies officials appointed during Martinelli administration.

By pampering time has known of an entire criminal conspiracy including relatives, friends, subordinates and other nominees who have taken advantage of the weak structure of banking supervision and benefits of the law on corporations and foundations to try to hide sums obtained illegally presumably during the period in which these people had the quality of staff.

It should be clear that regardless of seriousness of the facts, rules our country the presumption of innocence, and no guarantee as due process, which are binding on those responsible for the investigation as to judges to investigate all thus the evidence for the existence of crimes and those found to favor defendants, therefore, it is necessary to a fair balance in processing of cases.

Looking at the issue from a perspective of control of public funds, obvious that the administration of Ricardo Martinelli upset the constitutional order and made sure through various appointments and dismissals that there prevailed a control environment in hiring, much cost and management of public finances to encourage wasteful acts of embezzlement, and institutions such as the Ministry of Finance least they could transfer billions of dollars in payments for nonexistent contracts with exorbitant prices and thus allow officials of different order, unscrupulous businessmen stormed the National Treasury coffers.

In the rule of law which we live, will be held accountable former President Ricardo Martinelli, several state ministers and deputy ministers and other officials among which Frank De Lima, Omar Castillo, Franklin Vergara Jaén, Federico Suarez, Roberto Enriquez, Lucinda (Lucy) Molinar, Guillermo Ferrufino, Luis Cucalón, Rafael Guardia Jaén, Jose Raul Mulino, Alma Cortez, Jose Domingo Arias, Salomon Shamah, Enrique Ho Fernández, Luis Eduardo Camacho, Roberto Moreno, Ricardo Fabrega, Yasmina Del C. Pimentel Franklin Oduber Roberto Linares, Ricardo

6. Legislación y Economía - Noviembre 2014

Quijano, Juan Carlos Pino, Jayson Pastor Jaime Ford, Dario Berbey, Giselle Brea and others. To explain various acts, contracts and other transactions executed at the expense of state resources.

Will also be required conspicuous board members, state banks and companies where the state has participation, accountable management of these resources and consequently signing of contracts worth millions.

Finally, a lot of pseudo businessmen, lawyers who volunteered to create corporate structures, as well as suppliers of goods and services that inflated prices or who signed contracts without mediate delivery of goods or provision of services, received millions of dollars only now know.

But whatever has demonstrated the lack of participation of Comptroller General of the Republic, Gioconda Torres de Bianchini, during these five years, she is forced to cope with the processes so that your liability is asserted in each of these cases .

In this context, it should ponder and reiterate the heavy burden on his shoulders the newly appointed comptroller, Federico Humbert Arias, and the person to be appointed as Attorney General’s Office, as both entities have, among other functions, determine the existence of acts and other acts defined as crimes, fix the amount of the property damage and directing research to not only responsibilities are set but they can recoup some of the assets that have been subtracted from the National Treasury.

The public looks forward to the appointment of the Attorney General’s Office and in particular compliance responsibility to undertake this delicate task. L&E It will dawn and see...

PANAMA AGAINST INCLUSION IN FATF (GAFI) GRAY LIST Alberto Diamond R. Superintendente de Bancos de Panamá rbcweb@rbc.com.pa

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he Financial Action Task Force (FATF) is an intergovernmental organization created by the member countries of the G-7 in July 1989 at its meeting in Paris, initially to examine and develop measures to combat money laundering. After the events of September 2001, in October of that year the FATF expanded its mandate to include efforts to combat terrorist financing.

The FATF currently consists of 34 member jurisdictions and 2 regional organizations representing the major global financial centers. There are also jurisdictions members and observer organizations such as the IMF, OECD, World Bank, IDB, United Nations, the OAS, Group of Supervisors GIFCS International Financial Centers, (which is part Panama), Interpol and as associate members. As shown is an agency with international broad representation that seeks to strengthen the global commitment to prevent, combat and money laundering and terrorist financing are punished.

Modern literature suggests that the flow of illicit financing involving the following three (3) main types: (i) money laundering; (ii) international companies corruption and tax evasion; (iii) cost overruns and / or double billing. These categories don’t clearly define the origin or source of such flows.

They can arise from illegal or corrupt practices such as smuggling, fraud or forgery in general; or the money supply may be legal, but its illegal transfer, as in the case of tax evasion.

Large sums of money are transferred from emerging countries illegally. These flows of illicit financing impair the proper allocation and use of scarce resources needed to address investment issues and important issues such as health, education, justice, infrastructure in our countries.

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The FATF established a set of standards with the aim of encouraging countries the effective implementation of legal and regulatory measures to prevent and combat money laundering and terrorist financing measures and ensure the adequate integrity and stability of the international financial systems.

Progress in meeting these standards, known as the 40 + 9 recommendations, now give way to the current 40 recommendations are evaluated for different jurisdictions have a clear concept of commitment and effectiveness of a country to fight and prevent money laundering and terrorist financing.

In October 2012, the IMF, as an observer organization, conducted an assessment of the country in terms of the FATF Recommendations. The report highlighted as key elements the following topics: (i) The legal and regulatory framework for Panama is not consistent with current standards and recommendations of the FATF. (ii) That there are substantial gaps in coverage of prevention activities and designated as obligated non-financial professions (PADONFPs), such as: (1) the sale of gems and precious metals; (2) the operations of the Free

Zones; (3) the operation of casinos; (4) the activities of lawyers, accountants and other independent legal professionals, when engage in cash transactions with customers for amounts above the applicable designated threshold (B/. 10,000); (5) real estate agents; among other activities. (iii) These gaps generate internal risks to other sectors of the domestic economy, as well as other jurisdictions. (iv) That institutions don’t have the proper independence, human and financial resources and powers to effectively exercise prevention, especially in the non-financial sector of the economy. (v) The operational capacity of the Financial Analysis Unit (FAU) is limited by restrictions and access to information.

(GRA) which is part of the network of FATF agreed to address major deficiencies that has our system of prevention and control of money laundering and terrorist financing . With the implementation of this action plan seek to address major gaps.

In summary IMF report highlights central theme of weak institutional structure of the country to prevent money laundering and financing of terrorism and the need to adapt and update legal framework of the country to the highest international standards recommended by FATF.

• Institutionally strengthen the Financial Analysis Unit (FAU).

Due to this situation, FATF Plenary meeting in Paris last June, we were included in a list to improve overall performance of preventing laundering and terrorist financing laundering, with the following jurisdictions: Afghanistan, Albania, Angola, Cambodia, Guyana, Iraq, Kuwait, Laos PDR, Namibia, Pakistan, Papua New Guinea, Sudan, Syria, Uganda, Yemen and Zimbabwe. They are just as non-cooperative jurisdictions and high risk include: Iran, Democratic Republic of Korea, Algeria, Ecuador, Indonesia and Myanmar Being at the watchlist or improvement of compliance (gray list) adversely affects the perception of our commitment internationally and constitutes a substantial threat to competitiveness of our services sector of the economy in general and the International Banking Center in particular.

• Strengthening Customer Due Diligence-DDC and identify the final beneficiary.

For example one of the immediate consequences of this measure is that foreign financial institutions with banks doing business in our place, are forced by their respective regulators to perform enhanced due diligence in respect of transactions with entities in our country.

Operating costs increase, with a potential increase in lending rates, so that certain investors and financial institutions could decide not to continue operating with our country due to reputational risk.

Some of these situations as they occur, only silently.

Panama is directing its efforts to go as soon as possible out of the watchlist. It is an ambitious but not impossible task. Last April a plan of action with the Review Group of the Americas

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Among key actions required to close gaps that keep us on the Grey List, we can state: • Adapting the framework of legislation to international standards ensuring that money laundering and terrorist financing offenses are listed.

• Enforce measures to freeze financial assets of terrorists, according to United Nations resolutions.

• Extend range as required for the Activities subjects and Designated Non-Financial Professions.

• Ensure the strengthening of principles and procedures for effective international legal cooperation.

It’s essential to take steps in the right direction in an agile and develop an appropriate strategy, to prevent serious harm to either sector of our economy. Legal reforms are required to touch the banking sector and other financial activities. Likewise, international financial services sector, free zones, real estate activities, among others touch.

This delicate balance demands a great deal of coordination, understanding, cooperation, wisdom and sacrifice, both government and private sector as challenges where there are shared objectives, may face a more effective when we join forces as Panamanians. L&E

100 YEARS OF THE ADVISORY COMMITTEE PANAMA CANAL ON ECONOMIC AND COMMEMORATIVE COIN FINANCIAL AFFAIRS Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

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he Ministry of Economy and Finance, aw 34 of November 17, 2014, restored the valithrough Executive Decree No. 599 of 17 dity of Article 1172-M and created during the November 2014 created the Advisory years 2014 and 2015, for once, a collection of Commission on Economic and Financial cupro-nickel coins circulating current twenAffairs to advise Ministry of Economy and ty-five hundredths balboa to commemorate Finance in the presentation of Multianthe one hundred years of the Panama Canal, nual Financial Programming and other for a nominal or face value of up to three million dollars. commitments in 34 law on Fiscal Responsibility and recommend strategies to maintain and improve investment grade. The right of seigniorage from the coinage current circulation and quality test commemorative centennial Panama Canal The Commission shall be composed of representatives during the years 2014 and 2015 after deduction of expenses from public and private sectors and functions will include incurred, will be transferred to the National Treasury. L&E recommending a plan of action with a piece of critical path for the presentation of the financial programming; cooperate with authorities of the MEF to address the recommendations made by the rating agencies internationally recognized risk; act as a permanent advisory body to the Executive.

On the other hand, it has been established that the Commission will support its management, in the figure of an Executive Secretary who shall be responsible for coordinating the preparation of legal instruments that have been required in the performance of functions and administrative matters of the Commission. L&E

9. Legislaci贸n y Econom铆a - Noviembre 2014

SUSPENSION OF IMPORT NATIONAL ASSESSMENT OF RISK FOR THE OF FIREARMS IS PREVENTION OF MONEY EXTENDED LAUNDERING

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

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y Solved No. 167 / DIASP / 14 31 October the Ministry of Public Security decided to extend the suspension of import of firearms permitted use in the country, to authorized companies to apply for licenses to import this type of merchandise.

Similarly, it was ordered to take the necessary steps to import, export, temporary entry, distribution, sale, transfer, brokering, registration, transportation, transfer, storage, possession and carrying of firearms is regulated measures.

The Resolute will have a legal effect for a period of six months. L&E

10. Legislaci贸n y Econom铆a - Noviembre 2014

Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

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he Executive Branch through the Ministry of Economy and Finance issued Executive Order No. 577 of 13 November 2014 to begin the ordering process whereby Panama have a National Action Plan Risk Assessment for the prevention of crimes against money laundering and terrorist financing, under leadership and supervision of the High Level Presidential Commission against money Laundering. L&E

RESOLUTIONS APPROVED BY THE COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION

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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa

anama as El Salvador, Honduras, Guatemala, Nicaragua and Costa Rica are full members of the Central American Economic Integration Subsystem and are committed to achieving voluntary, gradual, complementary and progressive manner the Central Economic Union whose progress must respond to the needs of the countries involved.

6. Executive Decree No. 262 of October 21, 2014 ADOPTING THE RESOLUTION NO. 344-2014 (COMIECOLXVII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION.

1. Executive Decree No. 256 of October 21, 2014 ADOPTING THE RESOLUTION NO. 351-2014 (COMIECOLXVIII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION.

8. Executive Decree No. 265 of October 21, 2014 ADOPTING THE RESOLUTION NO. 341-2014 (COMIECOLXVII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION.

2. Executive Decree No. 257 of October 21, 2014 ADOPTING THE RESOLUTION NO. 352-2014 (COMIECOLXVIII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION.

9. Executive Decree No. 266 of October 21, 2014 ADOPTING THE RESOLUTION NO. 340-2014 (COMIECOLXVII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION

3. Executive Decree No. 258 of 21 October 2014 ADOPTING RESOLUTION NO. 348-2014 (COMIECO-LXVIII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION.

Thus we have the Executive Order 259 which adopts Resolution No. 352-2014 given a deadline of March 31, 2015, that the undertakings concerned to submit to the health authority in each Member State a compliance plan that allows to adjust the nutrition pyrography labeling of returnable glass bottles for soft drinks available to make a nutrition declaration under RTCA nutrition Labelling of Pre-packaged Food Products for Human Consumption for people from 3 years of age. L&E

7. Executive Decree No. 264 of October 21, 2014 ADOPTING THE RESOLUTION NO. 342-2014 (COMIECOWithin this context, the Ministry of Trade and Indus- LXVII) COUNCIL OF MINISTERS OF ECONOMIC try has adopted those legal instruments we list below: INTEGRATION.

4. Executive Decree No. 259 of October 21, 2014 ADOPTING THE RESOLUTION NO. 347-2014 (COMIECOLXVIII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION. 5. Executive Decree No. 261 of October 21, 2014 ADOPTING THE RESOLUTION NO. 345-2014 (COMIECOLXVII) COUNCIL OF MINISTERS OF ECONOMIC INTEGRATION.

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PANAMA-PACIFIC SPECIAL ECONOMIC AREA: WHO MAY QUALIFY FOR THE SCHEME?

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y Act No. 41 of July 20, 2004 a special regime for the establishment and operation of the Panama-Pacific Special Economic Area and an autonomous state entity called Special Economic Area Agency Panama-Pacific was created.

Maybé Mendieta - Abogada maybe.mendieta@rbc.com.pa

Immigration Regime:

- Special Visas (investor, worker and family workers); - Work Permits for foreigners; - Tax Exemption introduction of domestic and personal items; This scheme provides legal, tax, customs, labor and migration - Offices of the National Immigration Service in the issues applicable to persons, natural or juridical, which for- Panama-Pacific Area. mally established in this area, prior registration with Special Economic Area Agency Panama-Pacific, among which are : Legal Regime Stability of Investments: - For a period of ten (10) years, except in municipal taxes Taxation Regime: that the scheme is for five (5) years.

- Exemption from indirect taxes; - Application of direct taxes, income tax, dividend tax Note that, according to the objectives stated in the Law and complementary tax remittances abroad, among No. 41 of 2004, this special scheme is aimed at encouraothers, with the exception of companies engaged in the ging and ensuring the flow and free movement of goods activities identified in the third paragraph of Article 60 and services in order that the Republic of Panama is comof Law 41 of 2004. petitive in global economy. It’s for this reason that benefits provided by this legislation apply specifically to persons or companies established in the area, which engage in Customs Regime: activities that involve the transfer or sale of goods, pro- Input tax exemption for goods; perty or equipment, or providing services to persons es- Automated motion control of goods; tablished outside the territory of the Republic of Panama.

- Offices of the National Customs Authority at the Panama-Pacific Area.

In this regard, Article 60 of Law No. 41 of 2004, lists activities within the Panama-Pacific Area exempted Labor Regime: from payment of Income Tax, Dividend Tax, Tax on re- Application of the Labor Code; mittances abroad, and Import Tax Transfer Tax Movable - Hiring of foreign staff of ten percent (10%) to fifteen Property and Provision of Services, among which are: percent (15%).

- Offices of the Ministry of Labor in the Panama-Pacific 1. Provision of services to individuals or legal entities Area. located outside the territory of the Republic of Panama; 12. Legislación y Economía - Noviembre 2014

2. Sale or transfer of all types of goods, products, equipment, goods and services between companies in the Panama-Pacific Area, the Operator and the Developer, or to companies established in other petroleum free zones or port areas of the Republic of Panama ; 3. The sale of all kinds of goods, products, equipment, goods and services to visitors, passengers or crew members in transit or traveling to foreign countries, except when the sale is made by manufacturer’s own goods or business of Panama-Pacific belonging to the same economic group as manufacturer; 4. The sale of all kinds of goods, products, equipment, goods and services to ships crossing the Panama Canal bound for foreign or navigate between any operational port of the Republic of Panama and foreign ports except when the sale ports is performed by the manufacturer’s own goods or business of the Panama-Pacific Area that belongs to the same group of manufacturing; 5. The sale of all kinds of goods, products, equipment, goods and services to aircraft using operational airports in the Republic of Panama, bound for foreign airports, except when sale is made by manufacturer’s own goods or company for the Panama-Pacific Area that belongs to same group as the manufacturer.

6. The provision of services related to aviation and airports, including transport, handling and storage of cargo; distribution, maintenance, conversion, conversion and manufacture of parts and/or aircraft parts, whether for import into the National Tax Territory, export or disposition or transfer between the Companies of the Panama-Pacific Area Operator and Developer, or to companies established in other free zones, oil or special tax treatment of the Republic of Panama.

7. The manufacture of products, components and parts high technology, whether for import into the National Tax Territory, export or disposition or transfer between the Companies of the Panama-Pacific Area, the Operator and the Developer, or to companies established in other areas free, oil or special tax treatment of the Republic of Panama. Likewise, processing activities, manufacturing, assembly or manufacturing of products, components and parts in which high-tech processes are used.

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8. Multimodal and logistics services as well as sales transactions of goods not manufactured in the Panama-Pacific Area, into and out, provided that those sales transactions are carried out by a multinational company or any of its subsidiaries, affiliates, subsidiaries or companies in the same economic group.

9. The service call center for commercial use; capturing, processing, storage, transmission and switching data relay and digital information; link to radio, television, audio, video and/or data; office administration for users within the Panama-Pacific Area Developer or Operator, or established outside the territory of the Republic of Panama; research and development resources and digital applications for use in Intranet and Internet networks.

As provided by Article 60 of Law No. 41 of 2004, we can infer that this regime applies to operations outside the territory of Panama. In this vein, it is important to distinguish the Panama-Pacific Area National Tax Territory.

Definition Panama-Pacific Area and National Tax Territory According to Law 41 of 2004 Panama Pacific is a defined geographical area within the country, where every natural or legal person established in that area, you can make all kinds of activities under special regulations on taxation, customs, labor and immigration, among others.

However, according to the Act means the National Tax Territory, the territory of the Republic of Panama, excluding the Panama-Pacific Area and territories or areas subject to special tax regimes. Consequently, marketing activities in the National Tax Territory, considering that the Panamanian tax system is governed by the principle of territoriality, would fully taxed income derived from operations within the territory of the Republic of Panama.

In this sense, it is necessary to define domestic and foreign operations.

Domestic and foreign operations Is defined as domestic operations disposition or transfer of any kind or class of goods, products, equipment and property and the provision of services,

the National Tax Territory by the Developer, the Finally, under legal regulations Regime Panama-Pacific, Operator or the Companies of the Panama Pacific. it’s determined that the persons, natural or legal established in the area should conduct external operations, ie seForeign operations and export sales are all kinds or lling goods, products or services to customers located outclasses of goods, products, equipment and goods by side the territory of the Republic of Panama, to qualify for the Developer, the Operator or the Companies of the the scheme Panama-Pacific and therefore be subject to the Panama-Pacific Area to natural or legal persons loca- application of benefits and tax, customs, labor and migrated outside the territory of the Republic of Panama. tion incentives referred to in the Act and its regulations. L&E

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ADMINISTRATIVE ATTORNEY OF MANIFEST AROUND REVOCATION OF ADMINISTRATIVE CONTRACTS

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ecently, the Office of Administration ruled in favor of the invalidity of administrative contracts that have been held in an open violation of constitutional principles and the legal system, suffer from vices and void as misuse of powers enshrined in section 37 Article 201 of Act 38 of 2000.

This statement was drafted by the Attorney in Fiscal Vista No. 605 of 24 November 2014, within the Nullity of Administrative Complaint filed by the National Association of Vehicle Lessors (ANAV) against the concession contract No. 40-2011 signed by the Transit Authority and Land Transportation and Traffic Safety Company of Panama, SA, which aims to grant service for road safety cameras.

This pronouncement of the Office of Administration is forceful and timely in the current context that our country face numerous corruption scandals and bad management that have jumped out publicly in recent months, which have as protagonists former officials last government administration, which has caused the civil society to demand thorough investigations of irregularities and application of appropriate sanctions as appropriate.

In this regard, it’s worth noting that numerous scandals reported in the media reach certain administrative contracts signed during last administration, which have been severely criticized by being grounded on violations of both the law and our constitutional principles, and suffer from serious flaws in terms of transparency 15. Legislación y Economía - Noviembre 2014

Augusto García - Abogado augusto.garcia@rbc.com.pa

with which were signed, such as the misuse of power when dealing with companies linked to people close to senior officials of the last government administration.

Here we refer to some of these contracts: Concession Agreement between the ATTT and Traffic Safety in Panama for operation Surveillance Camera System: We must remember that the contract, caused a lot of criticism in public opinion because it introduced onerous conditions to detriment of the interests of the state by winning percentage commission on traffic fines imposed in this monitoring system, even when the Act itself recognizes these amounts as national income, to detriment of interests of the state and individuals.

In this vein, Office of Administration has stated that the contract was held in an open violation of rules of law and constitutional principles, constituting the grounds for annulment set out in Article 140 of the Law on Public Procurement, the delegate pretended fines transit to a third party, when this is an exclusive power of the Public Administration, through the transit Authority and Land Transport (ATTT), which for the latter can’t be delegated.

In addition to the above, the Administrative Attorney considered that in the execution of this agreement misuse of power was configured, since through it ATTT separated from the powers that the Executive Decree 640 of 2006 (Traffic Regulations) this entity confers

on the regularization of transit and Ground Transportation, to delegate the function of applying traffic tickets to a third party, a situation that is exacerbated if one considers the onerous conditions agreed in the contract, which becomes both a leonine contract to the detriment of the economic interests of the State.

Contract between the Directorate General of Revenue (DGI) of MEF and Cobranzas del Istmo, S.A, to manage billing for recovery of tax debt portfolio managed by the DGI. It’s probably the biggest criticisms contract has risen in public and in the same committees are established for enterprise Cobranzas del Istmo, S.A, ranging from 15% to 30% in response to months of delinquency the respective accounts receivable.

This contract is a violation of fundamental legal and constitutional principles, which at the time were the subject of pronouncement by the Plenum of the Supreme Court, when decreeing the unconstitutionality of Law 24 of 2013, through which the Authority was created national Revenue as an autonomous entity of the State.

In this latest failure CSJ was emphatic in stating that the role of tax collection and tax planning policy of the country are an exclusive power of President of the Republic with participation of Ministry of Economy and Finance, why the delegated this function in an autonomous authority an institutional imbalance caused and the rules and principles of the Panamanian Constitution were infringing.

Consequently, we have that this criterion is applicable to the provisions of this contract and therefore it directly violates our Constitution, which is why the statement made by the Office of Administration is crucial, since the violating the constitution that contract should be declared invalid.

Finally it’s important to note that contracts mentioned are some of the major criticisms that have aroused public opinion. However there are numerous contracts that must be revised and audits in order to determine the transparency and legality thereof, in order to res-

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tore the institutions and provide greater transparency to public administration, which has been undergoing a decomposition along past administrations that can lead the country to similar tortuous panoramas to those we observe today in countries in the region where corruption and mismanagement of state coffers have resulted in an unsustainable social situation. L&E

NOTARIES OF CHORRERA MUST REMAIN VISITED BY THE GOVERNMENT OF PANAMA

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ecently, the Office of Administration by NOTE C-47-14 of October 13, 2014, had the opportunity to absolve the question posed by the Governed by the Province of Panama, in the sense of whether or not to continue performing tasks Notary visits Sixth district of La Chorrera, to take effect the law creating the Province of Panama Oeste and set within its territorial division to said district.

To absolve question, the Office was based on Law 119 of 30 December 2013, which created the Province of Panama Oeste, segregated from the Province of Panama, which took effect on January 1, 2014 (Article 25) .

Article 21 of the Act in question, that “continue to integrate the Third Judicial Circuit of the province of Panama until the amendments relating to the judicial organization are adopted.”

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Source: Procuraduría de Administración

Because Authority notes that while the judicial organization of the Province of Panama Oeste has not been determined, nor his attorney circuit can be created, as follows from Article 2112 of the Administrative Code.

Concludes by stating that on the basis of these provisions, considered until it is established by law notarial circuit of the Province of Panama Oeste, the Governor of the Province of Panama, will continue to make visits to the Notary Sixth of La Chorrera, as part the powers to be exercised. L&E

THE IMPORTANCE OF RESPECT FOR CONSTITUTIONAL GUARANTEES AND DUE PROCESS IN CRIMINAL CAUSES

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n November 20 of this year, Fifth Court of Criminal Circuit issued a ruling where the importance of respect is highlighted due process, and the role to be fulfilled by prosecutors in their investigations, admitting an incident of nullity as legal consequence, ordering the summary file.

Among the highlighted within the Incident Nullity submitted by the firm Rivera, Bolivar and Castañedas aspects is poor investigative work to track down suspects and formally notify them of the disputed charges.

The lack of objectivity in making a precarious exercise in proceedings ordered by the Attorney Thirteenth and the absence of evidence to demonstrate responsibility in commission of the offense, especially violation of the rights of defense.

Of the arguments used by plaintiff, under responsibility of firm Tejada Lawyers, Article 2294 found the Judicial Code which provides a catalog of the grounds for annulment governing criminal matters.

LEGAL BASIS FOR SOLVING THE INCIDENT OF REVOCATION The judge noted that “The right of defense is investigated possibility of claiming everything that suits their legitimate rights and interests within the instruction and, where appropriate, procedurally prove its allegations”.

The same resolution states that “the realization of the rights of defense implies the reality of the principle of contradiction, so that if the part in question, for whatever reasons, can’t defend themselves, be no contradiction.

From this perspective, as scored by the court, although it is not specifically established as one of the grounds for invalidity mentioned in Articles 2294 and 2295 of the Judicial Code, estimates that we have a violation of the rules set forth by Article 1944 of the Judicial Code which literally states: “Article 1944. No one shall be tried, except by a competent tribunal, previously established pursuant to legal process, and with full guarantee of their defense.”

18. Legislación y Economía - Noviembre 2014

Lucila Rivas - Abogada lucila.rivas@rbc.com.pa What constitutes as indicated within the Incident Nullity a violation of guarantee of due process recognized in Article 32 of the Constitution of the Republic of Panama.

Also, Dr. Arturo Hoyos says, “due process is an instrumental institution under which must ensure the parties in any proceeding lawfully established and is developing without unjustified delay reasonable opportunity to be heard by the competent court, predetermined by law, independent and impartial, to rule on the claims and statements of opposing party, to provide tendered evidence relating to the object of the process and to contradict those made by the other party.”

“In processing processes the integral elements of due process and studied to be respected, and as a general rule, if any of these elements of people to effectively defend their rights are violated the penalty shall be the constitutional invalidity.”

OUR OPINION From the above we can say that there are rules or procedural principles as are the contradiction, equality of parties, right of defense, segregation of duties, in criminal cases, among others, which are guarantees of constitutional status can’t be violated, because if so the effect is detrimental to the administration of justice and therefore also represent a violation of human rights of persons subjected to a criminal investigation.

Allow contradiction between the parties is to ensure real and effective administration of justice, because it gives the possibility to judge analyze the information supplied and claims of each party, and that it might fail to justice and law.

Walking towards adversarial system, prosecution must make as much Management Act allows to gather the evidence of his claim and reasonably take to the conviction of judge. However in Weak Inquisitive or Inquisitive System, the Public Ministry also corresponds respect the principle of objectivity, which signals the duty to investigate the favorable and unfavorable to the accused, so that met this standard, ensure the contradiction and equal parts as guiding principles of all criminal procedure system. L&E

Bill No. 003 - That resets the Register of Building and Amendment Act 7 of 2005.

The initiative of this bill is to add a contentivo record of all information and details regarding the kind and nature of buildings of all kinds, rising nationally, in order for institutions to rescue and emergency prevention as well as the general public have the ease of knowing, monitoring, reviewing, investigating and defining the conditions and qualities of the works to be built in the country, available through technological means, expeditiously, immediate and free.

The general public can access the general data of the infrastructure and other basic information that serves to gauge the quality conditions of any civil works.

Suggest using an institution that operare nationally and not just city as with municipal engineering of each district and to engage effectively in designing strategies and prevention, which is present in all types of disaster, whether because of the nature or man that affect life or property of social clusters. • Draft law No. 4 - That transfer tax exempt personal property and services sunscreen preparations and establishes a mandatory discount on the purchase of these products by elderly people and pensioners.

Motiva exposure of this project because recent studies have mirrored the rise in skin cancer in our country; and the need to combat this deadly disease.

We know that the best way to prevent this disease is to avoid exposure to sunlight and use products that protect against UVA and UVB rays. However, the cost of these products is high for many people, why propose modifications to two laws to seek a transfer tax exemption of personal property and services of 7% and a discount for retired people and senior age, so that they are more accessible to the general public and seniors in particular their vulnerability to the harmful effects of the sun. • Bill No. 5 - By which taxi drivers are obliged to carry ID and other provisions on land transport and passenger are held.

Motiva presenting this draft, draft a law making it compulsory to every taxi driver to carry an identification card issued by the Transit Authority and Land Transport containing the photo of your face, your personal data, vehicle driving and the number of complaints and reports of the ATTT. With this measure several objectives, which we summarize as follows: (i) that taxi drivers are properly registered with the ATTT and who does not is, should not drive one of these vehicles (ii) if a passenger warns that the driver does not carry your passport, the photo does not match the card or the card is corrupted, that such signs horn becomes a warning sign that warns of a potential risk to their personal safety, can report it the police officer who is closest, among others.

In summary, the compliance of the above measures and other obligations on transit will be effective to the extent that there is more police and traffic inspectors presence on public roads. • Draft bill 52 - Reorganizing and regulates the Health Committees in the Republic of Panama.

The legislative proposal of this draft is based on the following: l. The strengthening of social organizations.

2. Functionality and effectiveness of organizations.

3. Streamlining administrative procedures.

4. Accountability.

The most important benefits contained in the proposal are: 1. Extension of the term of the boards to three (3) years and a period of re-election.

2. It allows social organizations engaged in activities of self-management and health promotion.

3. bases are established to speed up and / or decentralized procedures for changing policy updates firms and granting legal personality.

Inter ... • Draft bill 20 - To ban the use of lead shot by members of the National Police in controlling demonstrations.

This bill seeking to amend the articles of the Law 18 of 1997, Organic National Police on the use of non-lethal force, which consists of the following: Article 1. A paragraph is added to Article 21 of Law 18 of 1997, as follows: Article 21.

For purposes of crowd control members of the National Police use persuasion, using words or gestures, to promote peaceful alternatives to conflict resolution or claims that have generated controversy, in order to induce the protesters to suspend the strike adopted.

Article 2. A paragraph is added to Article 22 of Law 18 of 1997, as follows: Article 22.

The use of plastic bullets, rubber and lead, as well as any weapon the primary effect consists injure by fragments that can not be reached by x-rays in the human body is prohibited. L&E

THE ERA OF MILITARY REGIMES

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Rafael Fernández Lara rbcweb@rbc.com.pa

n our American continent a democratic environment like today, obviously with the exception of the Cuban dictatorship of the Castro government, whose unfortunate effect has fifty-five years of shame for his people wasn’t always lived.

Furthermore, in Asia military regimes existed in the past and in the present and in Indonesia, Burma (Myanmar), North Korea, Thailand, Vietnam, Philippines; in the Middle East, Iraq, Iran, Pakistan, Turkey, Yemen North. In Africa, remain subject the people of BuRegardless of some criticisms justified by irregulari- rundi, Republic of Congo, Somalia, Uganda, Rwanties, governments resulting from the realization of po- da, Nigeria, Egypt, Guinea and Sudan to name a few. pular elections are visible and numbers, changing the landscape of what existed in the previous two centuries. Without exception, all regions of the world record in its history have been victims of a coup in which the miliSo inevitably ask, why are fashionable and de- tary were directly or indirectly involved. This sometimes mocratic governments and military dictator- happens because the armed forces have more consistency ships that prevailed after decades of coups. and institutional organization that all civil society entities.

The succession of these interruptions of constitutional order through the history of our continent, can be attributed to various discrepancies between rulers and ruled that cause authoritarianism, where the governed are subjected by force to the authorities and to a greater or lesser degree executive entities legislative and judicial are guided by the armed power, preventing any form of democratic control.

Indeed, the military governments have not been a unique phenomenon in Latin America, but also in other continents of our globe. This is what happened in Europe with Adolf Hitler in Nazi Germany during the rise of National Socialism; Francisco Franco in Spain; Benito Mussolini in Italy with their fascism; the dictatorship of Antonio Oliveira Salazar in Portugal with his Estado Novo; the military dictatorship of the colonels in Greece; the military regime of Marshal Joseph Pioulski in Poland; the dictator Todor Zhivkov in Bulgaria, among others; and certainly, the satellites of Eastern Europe dominated by the Soviets.

21. Legislación y Economía - Noviembre 2014

Our Latin America has had prolonged periods of military dominance in many governments --- in the Plurinational State of Bolivia, during the nineteenth and twentieth centuries. --- In the Dominican Republic suffices to mention the dictator Rafael Leonidas Trujillo (called “The Benefactor”) and its 31 years of absolutist era. --- The Republic of Ecuador suffered this status at certain times of the twenties, thirties, forties, sixties and seventies. --- In the Republic of El Salvador occurred several coups in different decades of the twentieth century, with a prolonged tyranny episode. of several decades of General Maximiliano Hernández Martínez --- The Republic of Haiti was submitted by the long dictatorship of Francois Duvalier and his son Jean Claude Duvalier, from 1957 to 1986. --- The dictatorship of Tiburcio Carias Andino kept under iron-fisted to the Republic of Honduras from 1933-1948, among other tyrannies. --In the Republic of Paraguay, the dictatorship of General Alfredo Stroessner lasted 35 long years, from 1954-1989, characterizing all for murder, torture, exile and other vio-

lations of human rights. --- The Republic of Peru was ruled by military in the thirties and forties and from 1968-1975 by the dictator Juan Velasco Alvarado, who was replaced by another military, Francisco Morales Bermúdez, who extended the submission until 1980. - -The Republic of Colombia was controlled by the military dictatorship of General Gustavo Rojas Pinilla from 1953 to 1957. --- the Republic of Nicaragua suffered the iron dictatorship of the Somoza family, starting in 1936 with Anastasio Somoza García until 1956 when his son continued Anastasio Somoza Debayle until 1979, when he was overthrown by the Sandinista movement. --- In the Republic of Panama, Omar Torrijos Herrera and Manuel Antonio Noriega ruled from 1968-1989, appearing to be nominally subordinate to civilian rule but underhand had control and a very strong influence on the entire nation. --- The Republic of Cuba was subjected to the tyranny of Gerardo Machado from 1925-1933, and Fulgencio Batista from 1952 to January 1, 1959, when it was overthrown by Fidel Castro Ruz to continue subjugating the people with the dictatorship more time in America, totaling 55 years from then until today, when in effect persists.

--- The Bolivarian Republic of Venezuela with the dictatorship of Juan Vicente Gómez from 1908-1935, and that of Marcos Pérez Jiménez who ruled from 1952-1958 through its policy right organization, Civic Nationalist Crusade.

dependent of the great powers or else to follow the guidelines that impose them to represent their interests economic.

Thus, some Latin American armed forces or military governments ended up being effective tools to confront the alleged leftist or communist invasions, led at the time by former Soviet Union. The tyrannies maintained even international coordination to halt any plans for extension of Communist influence in the continent, as was the Condor, composed of military regimes in Argentina, Bolivia, Uruguay, Chile, Brazil and Paraguay.

The military tyrannies have frequently argued that their presence in power ensures political stability for the country or necessary to save the restlessness of dangerous ideologies. In other versions, military seek to justify maintaining its absolute control of the country is essential while the political classes described as corrupt and ineffective, when historically the military has proven exceptionally awkward, certainly worse than civilians critics. Not content with this, all Latin American dictators have violated human rights and repressed its dissidents and political opponents.

Importantly, during most of the twentieth century, particularly between the decades of the fifties, sixties and eighties, Latin America was plagued by military dictatorships, among other reasons to resist the influence of lef--- In Argentina, with coups in 1930, 1943, 1955, 1966 and tist movements. Unfortunately, the assiduity of coups 1976. It is noteworthy that the military junta that ruled in Latin America is characterized by the intervention between 1976-1983, according to reports by human rights of the military in politics. A fact is that most of the dicorganizations, caused about 50,000 people were killed, tators were trained at the School of the Americas, an or30,000 detained-disappeared and 400,000 were impriso- ganization sponsored by the United States, thereby enned. --- In the Republic of Chile military dictatorship of suring the loyalty and fidelity of the Latin American Augusto Pinochet Ugarte, in power from 1973 to 1990, armies to the foreign policy of the great power north. he used force and repression to silence dissent and political opponents. --- The Federated Republic of Brazil su- From the 1990s Latin American military dictatorsffered military dictatorships in 1930, 1945, 1964 and 1985. hips diminish the lack of legitimacy and internatioOnly in the twentieth century there were about 54 coups nal credibility, right at the end of the cold war between in Latin America. In contrast, in the 14 years of the XXI the great powers of United States and Soviet Union. century have been four (4). Thus, during the last century, the preponderance of military governments was palpable, Already in the XXI Century, the difference is remarkable. all characterized by suppressing the powers of the state, In this century we recorded a few coups in Latin Amerifor the use of military force to impose terror among their ca, including 2002 in Venezuela against Hugo Chávez, opponents, and this without delving into the economic in which Pedro Carmona became president of the repucost and human lives that has represented for Latin Ame- blic for a few hours. In 2005, a coup in Ecuador ending rica the fateful historical process of military dictatorship. with the departure of President Luis Gutierrez is given.

In 2009 occurs in Honduras a coup against the governNot infrequently military regimes have been a political trial ment of President Manuel Zelaya. The last recorded case to reassure populism, the development of exaggerated na- in 2012 in Curacao, against Prime Minister Gerrit Schotte. tionalism, or possibly any political determination to be in22. Legislación y Economía - Noviembre 2014

Humanity has witnessed, in a way, the consolidation of democratic processes. It seems that the military has been disappearing from political scene, at least for now.

However, interests, conflicts and frictions between different sectors of society make the process of stabilization of democracy is fragile and the interference of the military remains latent and difficult to eliminate short term.

Adolfo Hitler

The internal contradictions among the political class, poor civilian governments, characterized by corruption and political instability, will always be excuses used by military to justify interventions, selfproclaimed guardians of the people’s interests.

The background to predominance of coups and military governments in Latin America have been alarming. The coup in a country takes a contagion effect in other nations. In the late fifties of the twentieth century, 14 of the 20 Latin American countries were ruled by military. In sixties, seventies and eighties part, the same.

It will always be necessary to deepen democratization of countries, mature systems of political parties, acting through international organizations collectively against coups and against any act that undermines the democratic system of government. Only then, being ever vigilant internal and external, will avoid future eras of military governments such agony, hardship and chaos would have represented our nations. L&E

Antonio Oliveira

Maximiliano Hernández Martínez

23. Legislación y Economía - Noviembre 2014

COMMENT ON NATIONAL PRICE INDEX URBAN CONSUMER OCTOBER 2014

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he Consumer Price Index (CPI) in October compared to September 2014, recorded a low of 0.1 percent for both the National Urban and for the districts of Panama and San Miguelito and Urban Rest.

Compared with October 2013, an increase of 2.1 percent in the National Urban was observed; 2.2 percent in the districts of Panama and San Miguelito and 1.8 percent in the Urban Rest. In so far this year, the National Urban CPI showed a cumulative increase of 1.7 percent.

The divisions of CPI for October showed decline were: Transportation 1.2 percent due to the drop in fuel prices; Housing, water, electricity and gas 0.3 percent, the decline in the price of the paintings; and Recreation, entertainment and cultural services 0.2 percent, the decline in price of sound equipment. However, the divisions that showed greater increase were: Furniture, household equipment

24. Legislación y Economía - Noviembre 2014

Source: CGRP Contraloría General de la República de Panamá and routine maintenance of house 0.6 percent due to increase in wages of domestic workers; Clothing and footwear 0.2 percent, increase in price of clothing for ladies.

Comparing National Urban CPI October 2014, with its similar of 2013, the following increments are shown: Teaching with 4.6 percent; Miscellaneous goods and services 4.5 percent; Health with 4.0 percent; Furniture, household equipment and routine maintenance of the house 3.7 percent; Food and beverages 1.9 percent; Recreation, entertainment and cultural services 1.7 percent; Housing, water, electricity and gas 1.4 percent; Clothing and footwear 1.2 percent. L&E

MONTHLY INDEX OF ECONOMIC ACTIVITY

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Fuente: CGRP Contraloría General de la República de Panamá

he Monthly Economic Activity Index (IMAE) in For its part, business had growth in both the Republic, for January-September of this, measu- the retail, wholesale and locally, though inred in terms of the original series in 1996 prices, grew fluenced by limitations in Colon Free Zone. by 4.64 percent compared to the same period of 2013.

The provision of fun and entertainment still faThe sectors that showed positive rates for the referen- vored due to net sales of lottery, horse actice period were: fisheries, transport, storage and com- vities and income from gambling halls gamunication, financial intermediation, hotels and res- mes of chance, especially slot machines type A. taurants, commerce, community, social and personal service activities, construction, mining and quarrying. Sectors of construction and mining and quarrying showed a slight increase, reflected by a party to inAll other sectors participated positi- crease in building permits and housing; however, still vely, but slower, except for the manufactu- influenced by the low-enlargement of the Canal and ring industry recorded a slight decrease. the completion of several large state investment projects, compared to the same period last year activities.

Fishing presented favorable results due to increased catches of species destined mainly for export. Also influenced the lower demand in the records of basic inputs such as concreThe good performance of the operations of the te and cement, items associated with mining. transport and communications sector was taken by the dynamics of telecommunications and air The agricultural sector recorded a positive perfortransport; other activities showed a slight increase mance in activities such as dairy, vegetable and poulas movement measured in TEU’s National Contai- try farming. By contrast, falls in production of fruit ner Port System and operations of Panama Canal. crops like pineapple and banana, mainly for export was filed; Likewise, in breeding of cattle and pigs.

The financial intermediation activity remained favorable performance both in banking and in the insurance Some of the activities of services performed well were business, which recorded a higher volume of premiums. private education, the demand for qualified personnel and health services provided by the private sector.

The tourism-related activities, such as services in hotels and restaurants positive rates, mainly by hikers Production of electricity and water category showed entry, transit passengers, tourists and the costs in- a slight increase influenced by higher billed concurred by these during their stay in the country. sumption of electricity and drinking water. Conversely, a decrease in hydraulic and thermal power 25. Legislación y Economía - Noviembre 2014

generation was recorded.

Manufacturing industrial production decline in activities related to the manufacture of textiles, metal products, non-metallic, chemical and plastic minerals.

However, they showed a slight increase, food processing, paper making, editing and printing.

L&E

MAIN ECONOMIC MONTHLY INDICATORS

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or January-September 2014, major monthly economic indicators showed favorable performance in production activities related to domestic demand in the country, compared with their counterparts in 2013 were: chicken meat production 8%, 6.3% alcoholic beverages, soft drinks 5.0%; 4.8% consumption of electricity, water turnover in the Republic of 4.2%; value of construction, additions and repairs 17.2%; fuel sales 7.8%; new car sales 7.2%; value of gross written premiums and claims incurred 9.7%; Central government current revenues 2.3% and employment contracts registered with the Ministry of Labor and Workforce Development (MITRADEL) 4.0%. In turn, showed drop the slaughter of cattle 4.7%, 9.0% hydro and thermal generation of 26. Legislación y Economía - Noviembre 2014

Fuente: CGRP Contraloría General de la República de Panamá electricity 0.4% and loans by the BDA, including 16.2%.

From compiled indicators related to the world, presented positive sign: the weight exported petroleum products 6.7%, 14.0% cantaloupe, watermelon 1.9%, 66.9% shrimp, yellow fin tuna, frozen fish, fresh fish fillet 31.3%, 3.4% unrefined sugar, and flour and fish oil 111.2%; average number of occupied rooms in the city of Panama 4.2%, passenger entrance living abroad and 7.2% expenditure; toll revenue 3.4% and tonnage transported through the Panama Canal 1.6%. In turn, decreased transit of vessels through Panama Canal 1.2%.

L&E

PANAMA CANAL REACHES RECORD OF 963 THOUSAND TOURISTS IN CENTENARY YEAR

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he Panama Canal reached in fiscal year 2014 a historic brand 963,000 visitors in three main tourist centers, driven by interest to know the waterway during year of its centennial.

Among the visitor centers Miraflores Locks and Gatun and Observation Center Expansion (COA), the Canal of Panama received a total of 963.320 people during the fiscal year ran from 1 October 2013 to last September 30.

The number represents a growth of 9.6% compared to fiscal 2013.

Of total visitors, 70% were foreign tourists and the rest Panamanian residents.

The Miraflores Visitors Center (CVM) received the 82.5% of people who came to the Panama Canal, while the Visitor Center Gatun and the COA, both located in the city of Colon on the Atlantic side of the road, entered the 8.5% and 9%, respectively.

In 2004, the Panama Canal opened the CVM to exploit the tourism potential of the waterway, and since then has reinforced the offer with renovations to the center of Gatun and opening in 2012, the Center for Observation of enlargement.

In Miraflores tourists enjoy an experience with live viewpoints to appreciate the passage of ships, interactive exhibition halls that tell the history, operation, impact and expansion of the road, plus a ship simulator, 3D movie, restaurant, cafe and souvenir shop.

27. Legislación y Economía - Noviembre 2014

Fuente: ACP

The attractiveness of the center of Gatun is able to observe more closely the transit of vessels from a viewpoint just in front of the action, while the COA visitors witness history with the construction of the new locks of the Canal.

Because of its location in the middle of a tropical forest, the center of enlargement also offers visitors an experience of ecological tourism and views of the operation of the Canal at Gatun Lake, complemented by a cafeteria, restaurant, gift shop and children’s .

The three visitor centers operate Panama Canal every day, including holidays. L&E

MEF PRESENTS THIRD QUARTER FISCAL BALANCE 2014 CURRENT SAVINGS FUND ALLOWED 32.5% CAPITAL SPENDING

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Source: MEF Ministerio de Economía y Finánzas

he Ministry of Economy and Finance (MEF) interest, and which is expected to raise additional 100 mipresented the Fiscal Balance of the nonfinancial public llion more in the last two months of the year in progress. sector (NFPS) of Panama at the end of September 2014. The moratorium was extended until December 31, 2014.

Indicate that total revenues of 6,881.6 million dollars are reflected, representing an increase of 2.0% or 134.8 million Central Government Balance compared to the same period in 2013. And total expenditures amounted to 8952.4 million dollars, an increase of 12.7%. Total revenues amounted to 4,499.1 million dollars, an increase of 1.2% or 51.8 million of DoThis resulted in a deficit of 4.4% of gross domes- llars over the same period of 2013; meanwhile, tic product (GDP) or 2070.8 million dollars recorded. total expenditures totaling 6,884.9 million dollars, reflecting an increase of 10.3% or 642.3 million of Dollars.

By the end of fiscal year 2014 deficit is projected to be reduced as a result of implementation of cost containment and Tax revenues reached 3467.9 million dollars unincreased revenues traditionally received in last months til September 2014, which means 2 million of Doof each year, and that will allow comply with the stop de- llars over the proceeds in same period of 2013. L&E ficit set in Law on Social Responsibility and Fiscal force.

Guard explained that the increase of 1,005.7 million in total expenditures, compared to same period of 2013, mainly due to the 488.1 million and 169.3 million increase in current expenditure of Central Government and Social Security Fund (CSS ), respectively, and increased capital expenditures of 318.6 million.

Furthermore, current savings NFPS was significant, registering B/. 1,014.6 million, which financed 32.5% of capital expenditure, which totaled B/. 3,119.5 million.

For the second half of the fiscal year, the Government decided to implement measures to contain public spending in order to stabilize state finances and reduce fiscal deficit inherited from previous administration. In addition, the law in force tax holiday, which allows taxpayers who are Tax Defaulters pay their debts without penalties, fines or 28. Legislación y Economía - Noviembre 2014

COUNTRIES OF THE REGION APPROVED START THE NEGOTIATION OF A COMMON AGREEMENT ON ACCESS RIGHTS IN ENVIRONMENTAL MATTERS

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epresentatives of 19 countries of Latin America and the Caribbean signatories of the Declaration of Principle 10, which promotes access to information, participation and justice in environmentalissues, with significant public participation, approved today at ECLAC in Santiago, Chile, to start negotiations for the creation of a regional agreement in this area.

Delegates agreed to begin talks to have a regional instrument to support countries in implementing access rights enshrined in Principle 10 by December 2016.

For this purpose the creation of a negotiating committee comprising representatives of the signatory countries and the public, as well as a Board chaired by Chile and Costa Rica, which will coordinate negotiations to conduct the committee was adopted.

At the end of the Fourth meeting of the focal points designated by the Governments of the signatory countries of the Declaration on the application of Principle 10 of the Rio Declaration on Environment and Development in Latin America and the Caribbean, participating countries agreed also that the regional agreement will be based on the Contents of San José, document prepared at meetings of the working groups of mechanism, held in September in Costa Rica.

Fuente: CEPAL From 2012 to date Declaration on the application of Principle 10 has been signed by Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Dominican Republic, Saint Vincent and the Grenadines, Trinidad and Tobago, and Uruguay.

The meeting was also attended as observers Antigua and Barbuda, Nicaragua and Saint Lucia. Attendees welcomed recent incorporation of Bolivia and El Salvador and recalled that the process is open to all countries of Latin America and the Caribbean.

ECLAC holds technical secretariat of the process, provides advice to States, encourages the exchange of experiences and supporting capacity building.

In her speech, Alicia Barcena said that the instrument should not be merely declaratory but must be ambitious and set clear and specific legal obligations to ensure effectively the three pillars of access rights on environmental issues: information, participation and justice .

“As we have been advocating in ECLAC’s time for equality in Latin America and the Caribbean. This, among other multiple challenges, forcing us to defend rights of the most disadvantaged and vulnerable groups, which is in the heart Principle 10” Barcena said. L&E

DESPITE PROJECTIONS US ECONOMY IS GROWING STRONGLY

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he US economy grew at an annual rate of 3.9% in the third quarter, above forecasts, and consolidates continued in the last six months recovery, which was expanded with a strength not seen since 2003.

29. Legislación y Economía - Noviembre 2014

Source: OEA This second estimate of Commerce exceeded the 3.5% previously estimated and surprised analysts, who had bet on an annual growth rate of 3.3%. L&E

CLIMATE CHANGE AND ITS INFLUENCE ON THE ECONOMY

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ith increasing global temperatures, heat waves and other weather phenomena that nowadays occur every 100 years or more will become the “new climate reality”, which will lead to a world with greater risks and instability. The development impact would be severe, as crops will reduce, change availability of water resources, sea level would rise and endanger livelihoods of millions of people, according to a new scientific report gave announced today World Bank Group.

Sourcee: Banco Mundial

According to the report Lower the temperature: Confronting a new climate reality drastic climate changes and extreme events and affect people worldwide, damage crops and coastal areas, and put water security at risk . Also, many of worst projected climate impacts could still be avoided if warming is kept below 2°C. “The good news is that we can take steps to reduce the rate of climate change and promote economic growth slowing and ultimately stopping the march through this dangerous path,” said Kim. “The leaders and policymakers the world should support affordable solutions such as setting a price for carbon and policy decisions to redirect investment towards environmentally friendly public transport, clean energy, and energy efficiency in factories, buildings and equipment “.

It is likely that the impacts of climate change, extreme events such as heat, are unavoidable, because the Earth-atmosphere system will, by mid-century, to a nearby heating at 1.5 ° C above the preindustrial levels, the report says. Even the ambitious mitigation measures currently being taken will make this change adds. Lower the temperature: Confronting a new climate reality is an analysis of the potential impacts of current “Today’s report confirms what scientists have been saying, warming (0.8°C) and projections 2°C and 4°C above namely that past emissions have marked an inevitable pre-industrial levels in agricultural production, water retrend towards global warming over the next two decades, sources, ecosystem services and vulnerability of coastal affecting more to the poorest and most vulnerable people areas in Latin America and the Caribbean, the Middle the world, “said Jim Yong Kim, President of the World East and North Africa, and parts of Europe and CenBank Group. “Now we’re watching: temperatures excee- tral Asia. It’s based on a report by the Bank in 2012, in ding historical records are increasingly common, the in- which it was concluded that the world will experience tensity of rainfall has increased in some areas and drought- a warming of 4 degrees Celsius [1] by the end of this prone areas such as the Mediterranean, become drier”. century unless concerted action is taken immediately.

“These changes make it more difficult task of reducing poverty and threaten the livelihoods of millions of people,” said Kim. “We also generate serious consequences for development budgets and institutions like the World Bank Group, since our investments, support and counseling must now build resilience and help affected people adapt”.

30. Legislación y Economía - Noviembre 2014

The report, prepared for the World Bank Group by the Potsdam Institute for Climate Impact Research and Climate Analytics, reveals how rising temperatures worldwide increasingly threatens health and livelihoods of most vulnerable populations , dramatically deepening problems that each region and must deal today.

The risk posed by extremes of heat is a common threat

to all three regions. The latest climate models show that extremes of “highly unusual”, like heat waves registered in the United States in 2012 and in Russia and Central Asia in 2010, heat rising rapidly in the context of emissions associated with the World 4°C warmer. Also reveal that warming above 1.5°C to 2°C the risk that lower the yields and increase production losses in the regions analyzed increases considerably.

It is noted that decline in productivity also have impacts outside the main producing regions, with strong implications for food security, and may adversely affect growth and economic development, stability and social welfare.

Key findings at regional level are the following: • Latin America and the Caribbean: The extremes of heat and changing precipitation patterns will have adverse effects on agricultural productivity, hydrological and biodiversity. In Brazil, a warming of 2°C, and whether additional adaptation measures are not taken, by 2050 the crops could be reduced up to 70% for soy and up to 50% for maize. Acidification of the oceans, rising sea levels, tropical cyclones and temperature changes will affect coastal life media, tourism, health, and food and water security, especially in the Caribbean.

The melting of glaciers constitute a risk to the Andean cities.

• Middle East and North Africa: A significant increase in heat waves, combined with warmer average temperatures, will put intense pressure on already scarce water resources, with serious consequences for human consumption and regional food security. In Jordan, Egypt and Libya, the crop yields could fall to 30% by 2050 if the temperature increases between 1.5°C and 2°C. Migration and resource pressures related to climate could also increase the risk of conflict.

• Western Balkans and Central Asia: The reduced availability of water in some places becomes a threat as temperatures approach 4°C. The melting of glaciers in Central Asia and alterations in the mighty periods of watercourses will have less water in the summer months and a high risk of flash floods. In the Balkans, an increased risk of drought impact on crop yields, urban health and energy generation. In Macedonia, it’s forecast that by 2050, a warming of 2°C, crop losses reach 50% for 31. Legislación y Economía - Noviembre 2014

corn, wheat, vegetables and grapes.

The report also warns that if global warming is not stopped, could generate large-scale irreversible changes. In northern Russia, the gradual disappearance of forests and thawing of permafrost threatens to amplify global warming, since carbon and methane stored there is released into the atmosphere and a vicious feedback loop is generated. With a warming of 2°C, 2050 methane emissions could increase between 20% and 30% nationwide.

“The report is very clear that we can not continue the current path of uncontrolled emissions and rising. Leaders must step up efforts and take necessary decisions about how we manage our economies to achieve a resilient green growth and development, “said Rachel Kyte, Vice President of the Bank Group World Bank Special Envoy for Climate Change.”

To reverse current trends is needed technological, economic, institutional and urgent and substantial behavior change. Economic development and climate protection can be complementary. We need the political will to achieve it. “ [1] 4° Celsius = 7,2° Fahrenheit. L&E

FERVOR OF NATIONAL HOLIDAYS AND A NEW DIALOGUE BETWEEN MEDUCA AND TEACHERS Alexander Canto - Docente archivo2@rbc.com.pa

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ational holidays are one of the most anticipated by the Panamanian people: dates where important events as the day November 3, the separation of Panama from Colombia, the 4 of national symbols are held on 5 consolidation Separation of Panama from Colombia, 10 Grito de Independencia de la Villa de los Santos, and November 28 Independence of Panama from Spain, events that marked the sovereignty of our country.

CA and teachers’ unions, the wage increase B/. 300, was resolved after it was announced that payments will be made effective the last half of November and early December.

Thus arises a new dialogue between parties, where they reached an agreement to close the table of dialogue, which was installed on the Ombudsman, to open a new one in the province of Veraguas, Normal School Juan Demosthenes Arosemena, and Diogenes was announced Sánchez, secretary of the Association of Professors of the Republic of Panama (ASOPROF).

November is the month of the country, and this year precisely commemorating 111 years of separation and 193 of Independence, why all students of different schools in the country, go to the main streets to pay homage to the sound of the drums and horns, with their dress uniforms and traditional costumes expressing their fervor and recognition to those who fought and risked their lives for sovereignty; where top students have the privilege of carrying the national symbols for their effort and dedication to study throughout the school year, the country dresses in red, blue and white colors of our flag alluding to pay homage to our homeland .

The various associations of educators accepted, so the November 26 this new dialogue began, the MEDUCA emphasized that conversations are conducted, are given bilaterally, without the intervention of the Ombudsman.

One of the issues addressed in this new table of dialogue, is the assessment as to the quality of education received by 800,000 students in public schools and the future of curriculum changes implemented by the former Minister Lucy Molinar.

Significantly, despite different manifestations given by some teachers’ unions, for payment of the salary increase they haven’t received, by the MEDUCA, didn’t stop the protocol events and patriotic festivities will be held in the schools where they work respectively and thus render honor to our country, being demonstrated the patriotic spirit of educators and inculcate the importance of students, leaving aside the aforementioned problems, to fulfill their obligations in these national holidays.

It’s important to further promote and strengthen the patriotic fervor in each of the educational and public throughout the entire national territory, institutions to remember and keep in mind that the country is a sense of belonging and not to forget the struggle of our ancestors to be an independent country, as we are today.

On the other hand it seems that conflict between MEDU-

32. Legislación y Economía - Noviembre 2014

Another issue nic selection, cuses on the tion, and was

on the agenda to discuss is the electroaccording to educators, this process foperson holding the portfolio of Educadetailed by Sánchez Secretary ASOPROF.

I believe that the decision between different unions and the new Minister of Education is correct and sensible, and that through this new dialogue, both sides can express their different views and find a solution together the various educational problems presented today, without affecting student learning and avoid the paralysis of classes, seeking to raise the quality of education in all schools. L&E

LO SUCEDIDO EN EL DEPORTE DE PANAMÁ EN EL MES DE NOVIEMBRE Albin Rodríguez albin.rodriguez@rbc.com.pa

ATHEYNA BYLON An unknown boxer until a few days ago; now recognized for winning the Gold Medal at the World Amateur Female Boxing conducted in South Korea; becoming the best Olympic boxer in the category of 69 kilos.

Atheyna Bylon twenty-five years is a Corporal at headquarters of the security of our country, National Police.

The Panamanian boxer also has won the gold medal in the Central American Games which took place in San José, Costa Rica.

SAN FRANCISCO NEW CHAMPION OF LPF OPENING 2014 The team from San Francisco FC of La Chorrera, 2014 Torneo Apertura champion of the Panamanian Football League on Saturday November 22 crowned, 1-0 victory over Sporting de San Miguelito in the final match held at the Estadio Rommel Fernandez .

Chorrerano team’s victory was thanks to the masterful free kick by one of the most promising players in the LPF, Richard Rodriguez, 28 minutes of the first half.

The first half of the game was completely controlled by the team of La Chorrera, however, for the second time things changed since we saw a Sporting motivated and eager to win the championship; plumbing every pass and move; getting directions several times the goal of the monks; but good defense knew chorrerana control the counter and keep the party going for and achieve victory.

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This championship becomes the ninth title for the monks; and ensure their participation in the next edition of the Champions League CONCACAF.

PANAMA NATIONAL SOCCER TEAM The Panamanian team has played two matches in FIFA’s last held in November.

The first game was against the selection of El Salvador, in which they were victorious with a convincing 3-1 final score.

It was a hard fought game in midfield, but the Panamanian team was able to control the timing to take control of the game and take the win.

The second game was against Canada Team, which ended in a 0-0 draw.

This match was held at the Rommel Fernandez Stadium, was likewise very tight in midfield, there were not many chances, but could keep the clean sheet.

This year the National Team ends with position 56 World Cup Rankin. L&E

PLINIO CASTILLO RUIZ RECOGNITION FOR 35 YEARS FOR MINOR BASEBALL

O

n last Friday 21 November held a tribute to celebrate the thirtieth anniversary of the first conquest of Latin American Championship Baseball Little League Major Category, held in Mayagüez, Puerto Rico. Also special thanks to Plinio Ruiz Castillo for all his achievements on behalf of children and youth through leadership baseball in the minor categories over thirty-five years of uninterrupted work surrendered.

Redacción Deportiva

nio, who has over 35 years involved in the program.

Within the Panamanian Baseball Federation, Plinio Castillo Ruiz, only has space for your commitment to serving Little League, an unconditional passion that made by Panama’s childhood until his last days.

In 1988 he was formalized as Director of Little League in Panama responding to Latin American and global organization for 60 leagues over 800 teams That night was attended by the entire family of the minor and 12,000 participants infants in our countries. baseball: players, managers, referees and parents. Besides authorities Pandeportes Director and Administrator Also have managed the completion of 8 Latin American of the Latin American Region Little League Baseball, Inc. championships at Little League in home territory, except in pre-child category.

Recognition plaques were given in memory of this great achievement that still thirty years later is meaning There have been various functions through the years, as of pride for those who follow and practice the sport. umpire, scorer, coordinator, administrator, delegate selections, secretary (Panamanian Baseball Federation) hiThe Little League program assists youth in developing red to demarcate playgrounds (Private Schools), and led the qualities of citizenship, discipline, teamwork and him in 2001 to receive the distinction of ‘’ District Maphysical well being. By adopting the virtues of charac- nager of the Year ‘’ by senior managers of the baseball ter, courage and loyalty; It is designed to contribute to program, making it one of the best in the world and the better citizens rather than superior athletes, said Pli- second leader of Latin America to earn that award. L&E

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ACTIVITIES OF MONTHS NOVEMBER AND DECEMBER Mariela Sanjur mariela.sanjur@rbc.com.pa

November:

November 7 to December 7, is presenting the musical “Los Locos Adams” in the Theater Circle.

The November 16 Gala held Typical Catholic in the Archdiocese of Panama, organized by the Catholic community Force of God. It could enjoy Folk performances, singers and Congo music group “ Marriage United by Love “.

On November 20 the Panamanity Concert with the National Symphony Orchestra and Choir performed live music at the Balboa Theater.

repertoire.

Wednesday 10 December: The Kiwanis Club of Panama presents the Grand Christmas Concert 2014 “THE MESSIAH” by Georg Friedrich Handel.

Played by the National Symphony Orchestra, Musica Viva Choir and Chorale Choir Music Scread Dr. Erick Parris.

Location: Catedral Metropolitana Old -Helmet at 7:30 pm

Theatre:

On days 2, 6 and 14 December, the JADIS Foundation invites you be performing at the Teatro Anita Villaláz the play “The Cockroach Mandinga”, which involved young beneficiaries of the foundation.

Christmas parades:

The Christmas Parade organized by the Municipality of Panama, Sunday December 14th will be held from 2:00 pm. The Christmas parade route will be by way José Agustín Arango (Juan Diaz).

Museums:

December Events:

From 2 to 7 December will be presented with Disney On Ice: “Passport to Adventure”.

Concerts:

Saturday, December 6: Carols by Candlelight concert is will perform at 7:00 pm in the coastal strip, donations will benefit the Santo Tomas Hospital. Reserve your seats and candles anymore. carolspanama@gmail.com / 6615-5666 Monday 8 December, the City of Panama will perform at the Cinta Costera a Concerto for Mothers Day. The National Symphony Orchestra will perform musical pieces known Disney

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Museum of Contemporary Art: From November 26 to January 10, 2015, will appreciate the exhibition “Crossing the ocean. Exhibition of Contemporary Chinese Art “, Panamanian Association of Friendship with China invite you to the opening of the exhibition: Crossing the ocean. Exhibition of Contemporary Chinese Art. Museum of Biodiversity: From 3 to 5 December should not miss the traveling exhibition Innovation Space, showing the complexity of the creative processes of Adrià. It will be exhibited at the Biomuseo days 3, 4 and 5 December 9 a.m. to 3:00 p.m. Admission is free. L&E

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