- NEW LAW CAREER JUDICIAL - LAWYERS IN THE PREVENTION OF MONEY LAUNDERING IN LATIN AMERICA - EVOLUTION OF PANAMANIAN PUBLIC www.rbc.com.pa DEBT PERIOD 1990-2014
ISSN-1726-1477 EDICIÓN FEBRERO-15
- JUSTICE TREMBLES PANAMÁ
Consejo Editorial
Colaboradores en esta edición José Javier Rivera J. Rafael Fernández Lara
José Javier Rivera J. Giovana del C. Miranda G.
Giovana del C. Miranda G. Augusto García Karen Fábrega Ricardo M. Alba Adolfo Quintero Miguel Vallarino I. Roberto Eisenmann, Jr.
Portada y Diagramación: Virginia Medina Fotografía: Mariela De Sedas de Sanjur
Anna Marissa Admadé Alexander Canto Albin Rodríguez Mariela 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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todo aquél que tenga INTERÉS en la actividad de
PANAMÁ.
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@rbc_abogados
CONTENT 6. 8. 11. 13. 14.
EDITORIAL JUSTICE TREMBLES PANAMA
INVITED WITER AFTER A LONG WAIT FINALLY THE NATIONAL ASSEMBLY APPROVES DRAFT LAW OF JUDICIAL CAREER
NORMS OF INTEREST GOVERNING LAW AMENDING THE AGENCY PANAMA-PACIFIC CAPITAL ADEQUACY RULES GOVERNING IN BANKS NATIONAL SECRETARIAT IN TECHNICAL AND PROFESSIONAL OCCUPATIONS
CONSULT, DOCTRINE AND JURISPRUDENCE
15. 16. 18. 25. 27.
RÉGIMEN DE ESTABILIDAD JURÍDICA PARA LAS PERSONAS NATURALES O JURÍDICAS DE DERECHO PRIVADO, NACIONALES O EXTRANJERAS QUE REALIZAN INVERSIONES RELACIONADAS CON LAS ACTIVIDADES DE GENERACIÓN ELÉCTRICA SUPREME COURT DECLARES THAT TAX REFORM FEEDING THE CAIR IS NOT UNCONSTITUTIONAL LAWYERS IN THE PREVENTION OF MONEY LAUNDERING IN LATIN AMERICA
POLÍTICS THE GIFT OF THE CALL, ABSENT IN POLITICAL LEADERSHIP
PANAMANIAN ECONOMY EVOLUTION OF PANAMANIAN PUBLIC DEBT PERIOD 1990-2014
CONTENT 36. 38. 38. 39. 41. 44. 46. 47. 49. 50. 51. 53. 57. 59.
NATIONAL URBAN IPC INCREASE 0.1 PERCENT IN JANUARY FITCH RATINGS CONFIRMS THE INVESTMENT GRADE OF PANAMA STRENGTHEN RELATIONS TO ENSURE CUSTOMS UNION IN CENTRAL AMERICA AND PANAMA
WORLD ECONOMY
OPEN ACCESS IN REGULATED MARKETS AND ECONOMIC DEVELOPMENT IT’S TIME TO START THE AGENDA OF THE G-20: THE ECONOMY WORLD WILL THANK PRIVATE SECTOR SERVICES AND THE ECONOMY OF CARE, MAIN JOB CREATORS
CONSTITUCIONAL CAPSULE WHAT I WANT FOR MY PANAMA?
ENVIRONMENTAL CAPSULE APPROVED IN THIRD DEBATE BILL RAISES THE NATIONAL AUTHORITY TO MINISTRY OF ENVIRONMENT A RANGE DISCUSS BILL ON PAYMENTS FOR ENVIRONMENTAL SERVICES OPPORTUNITIES GREEN TO PANAMA
EDUCATIONAL CAPSULE SCHOOL YEAR 2015
FASHION
DRESS FASHION TIPS FOR SPORT AND INFORMAL
SPORTS CAPSULE CULTURAL CAPSULE
EDITORIAL JUSTICE TREMBLES PANAMÁ
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José Javier Rivera - Abogado jj.rivera@rbc.com.pa
n a weak democracy like ours there are only two pillars that allow trust the certainty of punishment:
against a background of having to accept the commission of crimes involving pecuniary and custodial penalties.
1. The independence of media. 2. Administration of justice.
In the same vein, several former ministers are being investigated for alleged involvement in acts involving serious material injury to the National Treasury.
In Panama, against all odds, we have witnessed a gradual strengthening of the capacity of media as genuine censors work of officials and why not say, entrepreneurs. It’s true that since the restoration of true democracy the end of the last century and three-year periods of this century, those in power have tried to restrict the development of the media, but I haven’t.
Many in the private sector who committed or rather that obtained contracts to supply various goods and services today are preventively detained in various prisons. In the same condition former officials who have responsibility in the commission of serious crimes against human dignity committed during previous government are.
By contrast, explosion of social networks has been called one of the most shocking aftermath, the true fact that all known issues immediately and the rulers of the world lack the tools to stop this maelstrom of information.
As if that weren’t enough, Ricardo Martinelli Berrocal, ex-president of the country, has more than a month of being out of the country, trying to escape personal responsibility suspicion of a plural number of crimes.
However, even if this mass of information constitutes a robust primary evidence to initiate investigations ex officio, does not mean that the administration of justice in our country have spontaneous combustion to generate results that the population has been demanding continuously.
The Plenum of Supreme Court declared unconstitutional the nomination of former first lady as a candidate for VicePresidency of the Republic, eradicating one blow any inclination of a president to be reelected directly or indirectly.
This situation has begun to change and there is strong evidence to suggest that the march towards a different course and thus closer to a rule of law is not a chimera. Every day we look across the country starting investigations have already placed a judge of the Supreme Court
6.
The Full Court has taken the pulse to a strong manifestation of Panamanian voters in the sense of preferring the alternation of power, instead of vice reelection, no matter who intended. Other important element is that the prosecution has requested additional resources for the appointment of special prosecutors who have the ability to investiga-
EDITORIAL te various criminal behaviors have been reported since the current fiscal corruption have a lot of open files. We believe that the prosecution has confidence of the public because it’s acting in a professional manner, without personal grandstanding and respecting due process of people who have the condition investigated or witnesses. Simultaneously, resources for the start of the Criminal Adversarial System required in the provinces of Chiriqui and Bocas del Toro, which corresponds to the timetable of this new system of investigation, prosecution and punishment of criminal behavior. The Comptroller General’s Office has rejected the hiring of private forensic audits, as we support, and has appointed a forensic audit of the institution, to perform a series of research ministers and other officials; as well as individuals who participated in various negotiated for public works, sale of goods, provision of services, which have caused injury to the State patrimonial overruns or absence in the execution of works, goods or provision service. Again media have been tracking this sudden boom of former staff, trustees and relatives who purchased homes, recreational farms or production, vehicles, livestock, companies, bank accounts, yachts and even airplanes and helicopters. Daily work of researchers will identify the umbilical cord between government expenditure made by an institution that has benefited one or more staff members and their Zero circles, but also to individuals, call these vendors, suppliers or companies. We have faith that there is a light in the tunnel itself Panamanian democracy and a number of institutions have been pioneers in building a democracy that is no longer embryonic but has the basis for consolidation. The first steps gave the Electoral Tribunal which prevented the turmoil that originated in Executive Branch and had unrestricted collaboration of some members of the judiciary and prosecutors. This allowed an election whose outcome couldn’t be rigged and also revealed the whole network of corruption that prevented many members achieve reelection or election as new members to be involved in such cases.
7.
That driver, similar to the “Silk Road” thread led public opinion multimillion sums Frank de Lima had been granted in respect of circuit games and other supports that ended up in the PAN, the district Communal Together, through National Bank and from then inflated purchases, nonexistent purchases, leases helicopters, public works and other crimes overruns too numerous to mention but are now generally known and cause stupor. After the long wait for the expiration of the constitutional term of General Comptroller’s Office, the Attorney General’s Office the Solicitor General and other officials who had perpetuated in office, as the National Tax Administrator, the country began to regain its effectiveness. It’s been barely two months into the fiscal year and will have concrete results corresponding to the Administration of Justice. Only we need a law that allows a quick and safe recovery of ill-gotten goods that are now in the country so that the accused can return to the country ill-gotten goods and these goods strengthen the administration of justice, Comptroller General’s Office, Attorney General, the Financial Analysis Unit, Directorate General of Revenue technology, cross tabulations, forensic auditors and tax auditors, equipment and all those tools sufficient to recover ill-gotten goods. Ricardo Martinelli Berrocal, the former tyrant, must also be reached by the long arm of justice, return the ill-gotten gains as was recently done a Supreme Court. It will dawn and see.
INVITED WRITER AFTER A LONG WAIT FINALLY THE NATIONAL ASSEMBLY APPROVES DRAFT LAW OF JUDICIAL CAREER
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Karen Fábrega - Abogada karen.fabrega@rbc.com.pa
eeting the needs of people as justice is concerned, it’s not enshrined in abstract rules, but derives from specific decisions of judges. The quality of the administration of Justice is directly proportional to the quality of its judicial officers. duties; of LATER Similarly, requirements A country can have excellent laws, but lose their for new applicants can meaning if we have competent judicial and eviden- enter legal profession. ce that properly implemented, it is therefore important to have a good career system and judicial training. Promotions are subject to competition between those who occupy positions in judicial roster, previously checking It’s no secret that our justice system is tainted by the lack that the chosen qualify and have skills for the position. of independence of some magistrates and judges, corruption and generally poor performance of officials in New applicants for vacancies shall be subjected to competihandling processes, so far maintaining high backlog . tion and must meet certain parameters such as submission of documentation, application of psychological and techniFortunately, Judicial Career Law has come true, as it has cal tests, training and internship of the Judicial School, inbeen adopted in Third Debate by the Assembly of Deputies terviews, so the person can choose to have the highest score. and only lack the sanction of President Juan Carlos Varela, which as well as rights and benefits are granted, also set The Judicial applied to magistrates and judges; and spethe responsibilities of each of the officials of the judiciary. cialized support personnel (senior officers, clerks, bailiffs). Finally, as proposed by this Act, it puts the bell on the cat, considering that the judiciary remain and move up the justice system demonstrating their skills and abilities, goals regarding the handling of cases, through periodic evaluations in which it is checked whether or not fulfill their
8.
The project also creates the Judicial Administrative Career for servers working in administrative offices of the judiciary, except those holding positions of secretaries and undersecretaries, directors and sub-secretaries, principals and vice principals, coordinators; who is in charge
INVITED WRITER
of overseeing organize and optimize the administration of justice, regulating the incorporation, selection, transfer, promotion and dismissal of judicial administrative servers. It also creates the Public Defender Career (applicable to public defenders), the conditions of incorporation, transfers, promotions, incentives will be conditional on performance; Further, the bill provides that his salary will be equal to the magistrate and judges before taking action.
How to members of the judiciary will be evaluated on their performance?
Similarly, at the time of retirement only magistrates, judges and public defenders holders will be entitled to a compensatory retirement, which will receive in response to their higher salaries earned in 10 years in salary and expenses, to B/.5,000.00 for a period of five years. This measure aims to renew the justice system, since there are now retired high profile officials and even occupying the jobs, they prefer to continue working to meet their financial responsibilities, be given the opportunity to other young people with desire and ability to administer justice.
Bi-monthly evaluations will be conducted in order to Upon whom shall have the burden of compensaestablish what level of performance achieved each offi- tion for judges upon retirement? cer and implement actions to achieve annual target. Under the bill, the difference will receive the judge or magisThe purpose of performance evaluation parameters will ser- trate shall pay to the judiciary through its annual budget, as ve as quality and effectiveness of services provided by the offi- established by Ministry of Economy and Finance. In addition cial; behavior according to the mission of the judiciary and to this retirement is entitled to retirement of the Social Security. skills to achieve objectives of institution, to be held annually. Will the user have the opportunity to evaluate offiImportant aspects will assess productivity, skills, good cials and the administration of justice in general? judicial practices, ethics compliance and discipline, work environment and quality of service to users. The bill provides, quarterly surveys of users of the judicial system to know how the service of justice. These surveys will An important issue that spans Judicial bill, is remuneration be conducted by the Administrative Office of Judicial Audit. of officials, which as you know, wage conditions are not optimal, and salary policy, in which no official may be implemen- How complaints will be dealt with by judicial misted earn less than indicated in the table, based on the posi- conduct servers career? tion and grade of the post. Furthermore, as we know, judicial officials upon their resignation or retirement doesn’t receive A great virtue of the recent bill is the creation of the Special any employment benefits, so, this project includes a seniori- Tribunal Integrity and Transparency, which will be responty bonus depending on how long you served the institution. sible for investigating misconduct by judicial officers; judge and apply sanctions to offenses committed by judicial offiIt’s worth mentioning that there is an official ban which is cers career, whether or alternates, except the Supreme Court, that these people can’t practice their profession in a parti- which constitutionally belongs to the Assembly of Deputies, cular way and they can’t engage in commerce during his but subject under stipulated in the Law on Judicial Service. tenure except teaching at a university in the town. As a novelty, the judiciary draft, provides special compensation This tribunal shall be composed of three judges selecfor these officials, which shall not exceed 20% of their an- ted by tender and each will have two alternates. Such nual salary for full-time to the judiciary. Such compensa- officers have the same rights as the judges of the High tion shall be established by the Board of Judicial Career. Court and accrue an additional salary received 20%.
9.
INVITED WRITER
Shall have a Secretariat, the official shall be appointed Will the Judicial bill improve administration of by the House contest this court and have the same rights justice in Panama? as the secretaries of the Boards of the Supreme Court. I believe that with all the new addresses and courts that are to Within the Court of Integrity and Transparen- establish, you can eliminate inefficiency and corruption of cy, a special unit, which will be responsible for in- justice system, in view of who is responsible for hiring, is not vestigating complaints brought against public ser- the same person to select, transfer, promote, welcome new vants and are also empowered to initiate an official applicants, investigate and punish judicial officers, precisely investigation, through a Judge Investigator is created. because each of them have specific roles and responsibilities. It also created the Special Ombudsman Integrity and Transparency, whose purpose is to independently legally repre- With periodic evaluations to be made to the aforementiosenting judicial officials on allegations that promote against. ned officials, forcing them to hold office with responsibility and diligence, as having a sanctioning body, shall endeavor Overall, the process of reporting and investigation will be to achieve the goals and not fulfilled, shall be dismissed. handled as follows: a resolution will be issued with reasons for initiation of the investigation; will notify the court per- This will be a positive interference, as current staff should sonally server; will be given a term of eight days to inves- be attached to the new guidelines of the Judicial, and tigate to answer the complaint and provide evidence ne- I think that will decrease the backlog, as has been the cessary for his defense; right to appoint a special guardian implementation of the Criminal Adversarial System. or the Special Ombudsman. The investigation by the magistrate Research Unit Transparency should last 40 wor- Finally, we have a justice system that will seking days, then forwards it to Special Tribunal acted In- lect members based on their merits and abilities, tegrity and Transparency, where a hearing date will be set. not cronyism, nepotism or subjective conditions. We expect the system Judicial not be forgotten as usually ocBefore the hearing may call witnesses, investigating magis- curs or the adjournment for lack of funds, but is run as soon trate asks the indictment and the evidence, the court ser- as possible, because as users of the system, we urgently need a ver can admit or deny the evidence and make their own, change to end the disagreement before our justice system. L&E practice tests, the allegations are made, the judge issues a decision substantiating (all this takes place in an oral process, much like an adversarial criminal proceedings). This procedure allows that the judge or magistrate or even any member of the judiciary, sitting affected his impartiality on the part of his superior, can at any time go and report a fully independent Tribunal, the events that motivate their disagreement or have interference in its decisions or its functions. Considering the above, there are no excuses for administration of justice is affected by corruption, by pressure of superior, bias or incompetence of judicial officers.
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NORMS OF INTEREST GOVERNING LAW AMENDING THE AGENCY PANAMA-PACIFIC
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aw 3 of 10 February 2015 amending the Act 41 of 2008 which created the Panama-Pacific Agency, adding two terms to the glossary, prosecutors companies exemptions set out in that area, as well as the Developer and Owner, including migration and labor. The assembly and processing activities were included in the glossary of Article 3, meaning the first and manufacture of finished or semi-finished by the coupling process input and semifinished parts products; and the processing and disposal of products, parts, components, accessories and/or parts that are or are in liquid or solid form, to undergo treatment or transformation processes, tropicalization, modification, repair, cleaning, testing quality, calibration, validation, analysis, purification, paints, application of corrosion, packing, packaging, crushing, recycling and / or any type of manual or mechanical, physical or chemical process necessary to make possible the production of a particular good. For its part, Article 60 provides as regards taxes payable by businesses in the Panama-Pacific Agency, Developer and Operator both its internal operations and its external operations or export, as well as exemptions to payment of tax on income, dividends, remittances or transfers abroad and import tax and transfer of movable goods and service provision income, profits or gains derived from the following activities was amended in the following respects: • Paragraph “c” is eliminated which were released from the previous tax on the sale or transfer of all or class of goods, products, equipment and property as well as the provision of services between the Companies of the Panama-Pacific
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
Area, Operator and Developer or undertakings established in other petroleum free zones or port areas of the Republic of Panama; the latter subject to the provisions of Articles 50 and 51. • Is added to the literal “h” exemption from processing activities, manufacturing, assembly or manufacturing of products, components and parts in which high-tech processes are used. • In the literal “i” on multimodal and logistics services, exemption from sales transactions to the outside of goods not manufactured in the Panama-Pacific Area is added. • Exemption from the taxes described on the provision of services with high added value protected by intellectual or industrial property, provided to enterprises established in the Panama-Pacific Area Developer and Operator adds or companies established in paragraph “j” outside the country. 4 paragraphs were added to Article 64 which provides that all goods, products, equipment and other goods entering tax free area may leave this area: • Its use as working tools of the Companies, Developers or Operators Area, specifically for the purpose of turning business operations of these. • To be subjected to any process of manufacture, assembly, processing or treatment.
NORMS OF INTEREST • To be donated to public institutions, or autonomous, semi-autonomous or decentralized institutions and nonprofit organizations or charities.
the right to permanent residency after completed two (2) years is maintained and down from five (5) years. • The term of residence permit for workers within the fifteen percent (15%) of three (3) years two (2) years is • Any other allowable output mode, after payment of the reduced, the right to permanent residency after completaxes or the appropriation of established guarantees. ted two (2) years is maintained and down from three (3) years. Another modified items was 68 with the introduction • The term for resident permits for workers at a higof paragraphs state that if finished products, manufac- her rate of fifteen percent (15%) were granted for the term tured, assembled or manufactured in the Panama Paci- of the employment contract that may be up to three (3) fic area are free of duties, taxes and import duties in the years. Before the reform contemplated three (3) years. country by reason international agreements or treaties to which Panama is a party, importation of such products It has been considered that the changes to the legislation area to the national territory or any other area or area Panama Pacific Agency, aim to consolidate the strengwithin Panama, cause no tax or duty, or right import. ths offered by the country to the international market With regard to immigration and labor issues Arti- as a logistics hub and services globally to attract new incle 91-A is introduced which gives the Executive the vestment companies opting for the benefits that enpower to regulate regard to the requirements applicable courages the agency to establish their regional or gloto process work permits under the category of workers bal operations and service centers under a legal regime, within ten percent (10% ) of foreign personnel, within fiscal, customs, labor, immigration and special busithe fifteen percent (15%) technical or specialized per- ness-oriented, encourage and promote investment. L&E sonnel; Employees who exceed fifteen percent (15%) of expertise; workers with less than ten (10) workers. The amendment of Article 100 which deals with resident permits and work is the following: • Replaces the term worker visa for residence permit. • The term of residence permit for workers within ten percent (10%) of five (5) years two (2) years is reduced,
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NORMS OF INTEREST
CAPITAL ADEQUACY RULES GOVERNING IN BANKS
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he Superintendency of Banks Agreement No. 001-2015 issued on February 3, 2015 whereby Capital Adequacy rules applied to banks and banking groups are established, the scope and application will be to:
1) Official Banks. 2) General license Banks. 3) International license banks whose supervisor is the Superintendency. 4) Owners of bank shares of banking groups to consolidate its operations in Panama and are supervised by the Superintendency of Banks. Moreover, it was established that the Superintendency of Banks may implement the Agreement to banking institutions not covered by the above, because of their importance to the financial stability of the banking system paragraph. Similarly, it’s contemplated that the Agreement applies on an individual basis in accordance with International Financial Reporting Standards, with some exceptions. The agreement in question, concerning the Primary regulates OC; Characteristics of Common Stock; Additional Primary Capital; Characteristics of Financial Instruments for the Primary Capital; Secondary Capital; Characteristics of Financial Instruments for Secondary Capital; Regulatory adjustments; Capital Adequacy Index Bank and Subsidiaries Financial Nature; Capital Adequacy Index of a Banking Group; Capital Adequacy Report; Branches of Foreign Banks with General License Banks and International License subject to supervision destination among others.
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
It’s noteworthy that the Agreement repealed in its entirety to Agreement No. 5-2008 of October 1, 2008 and all amendments and Agreement No. 3-1999 May 11, 1999 and shall come into effect on 1 January 2016. However, compliance with the minimum values of capital adequacy ratios will be subject to a timetable, on the compliance date of January 1 of each year. Finally, the Superintendent has estimated an additional period of adjustment until January 1, 2017 for banks and banking groups that stay within their primary capital components and/ or secondary instruments that do not meet the conditions. L&E
NORMS OF INTEREST
NATIONAL SECRETARIAT IN TECHNICAL AND PROFESSIONAL OCCUPATIONS
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y Executive Decree No. 26 of February 3, 2015 issued by the Ministry of Labor and Workforce Development National Secretariat was created in Professional Technical Occupations as a body for coordination and interagency collaboration for the proper implementation of the action plan that the Government committed to develop, to comprehensively address concerning the training of human resources in technical and professional occupations. Within this context, the Standing Advisory Council for Public Policy Technical Occupations Employment Professionals was created as an advisory committee of the National Secretariat Technical Occupations. The National Secretary of Occupations Techniques, will within other functions mentioned below: 1. Assess and review various recommendations made by the High Commission of Public Employment Policy regarding strategic implement for training in technical and professional occupations lines. 2. Assess and review various recommendations are forwarded to the President of the Republic. 3. Coordinate with the various public agencies, implementation phases of strategic guidelines and relevant actions on training of technical and professional occupations. 4. Monitor implementation of decisions and projects developed around the training in technical and professional occupations.
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
5. Organize and conduct meetings with the productive sector. The Ministry of Labor as regent entity may convene meetings Secretary coordination and evaluation of the implementation of the action plan for training in technical and professional occupations, which may have the technical assistance of the International Labor Organization. L&E
CONSULT, DOCTRINE AND JURISPRUDENCE LEGAL SYSTEM STABILITY FOR NATURAL OR LEGAL PERSONS OF PRIVATE FOREIGN NATIONAL OR PERFORMING RIGHT INVESTMENT ACTIVITIES RELATED TO ELECTRICITY GENERATION
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Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
he Office of Administration consultation acquitted by General Manager National Authority of Public Services which inquired whether companies operate hydroelectric established in the Ngäbe-Buglé and were under construction or in operation before the effective date of Law 11 March 26, 2012, which establishes a special regime for the protection of mineral, water and environmental resources in this region, are either not required to provide the economic support provided in paragraph 1 of Article 7 of the Act, considering that Article 15 qualifies social interest and credited retroactively within the territorial area covering this region. To answer the question posed, the Attorney Query 5 C-0515 of January 30, 2015 states that in economic contribution have to make hydroelectric projects that develop in NgäbeBuglé and areas appended to the benefit of the communities of this region shows the content of Article 7 of Law 11 of 2012, that it is required only for future projects; ie those projects undertaken after the entry into force of the Act.
should make financial contributions provided for in Article 7 in question, since that provision merely this obligation only for future hydroelectric projects; otherwise, it would undermine the legal certainty of hydroelectric concessions were granted under a different legal regime. To this effect, consider that our legal system through the Law No.54 of July 22, 1998 (Article 5 and subsequent) and Executive Decree No. 9 of February 22, 1999 that regulates, has developed a legal stability for natural or legal persons of private, national or foreign law that perform activities related to power generation investments.
Concludes by stating that the certifications must issue to the National Authority of Public Services concerning the annual turnover of hydropower projects developed in the Ngäbe-Buglé, their adjoining areas and adjacent communities, whose amount is calculated to determine the economic contribution aimed at communities included in this territory, as provided in paragraph From this viewpoint, the Authority considers that Ar- 1 of Article 7 of Law 11 of 2012, correspond to the proticle 15 of Law 11 of 2012 establishes that it is of public jects undertaken after the enactment of this Act. L&E interest and will have retroactive effects on the Ngäbe-Buglé, its ancillary areas and adjacent communities (Article 1) shouldn’t be understood on the basis of its retroactivity, hydroelectric projects that were under construction or operation at the entrance of its validity,
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CONSULT, DOCTRINE AND JURISPRUDENCE
SUPREME COURT DECLARES THAT TAX REFORM FEEDING THE CAIR IS NOT UNCONSTITUTIONAL
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Augusto García - Abogado augusto.garcia@rbc.com.pa
y judgment dated November 12, 2014, the Plenum of the Supreme Court stated that it is not unconstitutional, sentences, paragraphs and paragraphs in Article 699 of the Tax Code and decreed configuration known budget and subtraction of matter regarding sentences and paragraphs in Article 700 of the Tax Code.
On the other hand, the violation of section 10 of article 159 of the Constitution, attempting to delegate to the General Revenue function to determine the circumstances under which the tax should be levied without an objective parameter to guide the actions of alleged taxpayers and the plaintiff entity.
This pronouncement of the Supreme Court Request product of unconstitutionality filed against some sentences, paragraphs and paragraphs contained in Articles 16 and 17 of Act 6 of 2005 originates, which modified the content of Articles 699 and 700 of the Code tax, introduced in our tax laws Alternate Calculation of Income Tax (CAIR).
Similarly, violation of the principle of equality contained in Article 20 of our Constitution is alleged to be disregarded in the attacked provisions unconstitutional different circumstances that could affect taxpayers to be taken as the basis for calculating the total taxable income earned in a fiscal period.
The plaintiff based his claim on the fact that content of Articles 699 and 700 of the Tax Code, subject to modification by Articles 16 and 17 of Act 6 of 2005, introduced a new method for calculating Tax income individuals and corporations which taxpayers subjected to a regime of determining taxable income that ignores and disregards the particular and specific circumstances that may confront taxpayers establishing as sole exception to its application, the existence of a loss in a given fiscal year, according to the plaintiff made directly violates the literal content of Article 52 of the Constitution, to delegate to the General Revenue, the function of establishing and determining the circumstances in which they apply the new alternative method stops the calculation of ISR, recognizing, almost absolute discretion that entity.
Finally, the plaintiff alleges violation of Article 264 of the Constitution to a system of determining taxable income dummy affecting natural and legal persons who are in different situations established fact.
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Opinion of the Attorney General’s Office: By Vista Fiscal No. 15 July 27, 2006, the Attorney General’s Office requested the plenary of the Supreme Court declare that aren’t Unconstitutional Articles 699 and 700 of the Tax Code, according to the modification made by Law 6 2005, noting that they haven’t violated the constitutional provisions alleged by the plaintiff and consider that there is no discretion in the form of collection of income tax, since it is not discretionary analysis for determining the alternative method under that the
CONSULT, DOCTRINE AND JURISPRUDENCE same gravel taxpayers based on their purchasing power. act by the DGI. Regarding the violation of section 10 of article 159, the Supreme Court considers that no constiArguments of Third Parties: tuted the breach alleged by the plaintiff under the CAIR is not a tribute, so its no application is not considered an Publio Cortés, current Director General of Revenue, was exemption from income tax, being that procedure reguthe one who filed claims in the process, asking the ple- lated by law and only come at the request of the taxpayer. nary attacked the constitutionality of laws declaration, stating that the legislature failed to meet its obligation to This same criterion is outlined by the Plenary of the establish and fix the shape of collection of tax under the Corporation of Justice to analyze the allegations of alternate calculation, noting that the standard since its violation of Article 20 and 264 of our Constitution, genesis ignores fundamental principles established in our which established the principle of equality and taxaConstitution, disregarding the economic reality of taxpa- ble capacity respectively stating that the principle of yers, forcing these to pay the highest amount the Treasury. equality established in this constitutional excerta, not Analysis of the Plenum of the Supreme Court: more than equal to the imposition of the tax, and has the duty of every citizen to contribute to the support When start analysis the Plenum of the Supreme Court of the government in proportion to the income genebegins warning that Articles 699 and 700 of the Tax rated, while the taxable capacity defines our tax system Code subject of this action of unconstitutionali- as a system which ensures that each taxpayer support ty were part of a legal reform through Law 8 of 2010. in proportion to their economic capacity tax burden. In this vein, the House notes that Article 699 of the Tax Code, despite the reform carried out, kept the In this regard it is noted that Article 699 provides mechapayment of income tax either through the traditio- nisms that are inconsistent with the principle of equality nal method or alternative method for those corpo- and contributory capacity to provide that in the event of rations with taxable income exceed B/.1,500,000.00, losses or effective rate over can apply for non-application of being obliged to pay the greater of the two methods. CAIR, which according the Plenum of the Supreme Court is an objective criterion of redress for taxpayers if their abiIn this vein, the Supreme Court makes clear that lity to pay is injured as a result of payment of income tax. the Alternate Calculation of ISR is not a new tax but a different way of calculating the amount due, Regarding the charges of unconstitutionality saddso there goes the same tribute, why such entity led with Article 700 of the Tax Code, the House warns does not consider it unconstitutional Article 699 of that by Act 8 of 2010, CAIR was abolished in that the Tax Code regarding the introduction of CAIR. Article configuring the legal phenomenon subtraction of matter to extinguish the object of constitutioIn this regard the House notes that the criteria that ob- nal process established by the plaintiff in this section. jectively should be appreciated by the tax administration In response to arguments put forward the Plenum of the for not access or request No Application of CAIR, is re- Supreme Court stated that it wasn’t unconstitutional, gulated by Executive Decree 170 of 1993, as amended by sentences, paragraphs and paragraphs in Article 699 of Executive Order 27 2005, why DGI is limited to the non- the Tax Code and decreed configuration phenomenon application of alternative calculation verification of the known as abduction matters regarding sentences and pacriteria set out in the Act (existence of loss or excessive ragraphs contained in Article 700 of the Tax Code. L&E rate) and other formal requirements such requests must accompany therefore can’t be regarded as a discretionary
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CONSULT, DOCTRINE AND JURISPRUDENCE
LAWYERS IN THE PREVENTION OF MONEY LAUNDERING IN LATIN AMERICA
A
Ricardo M. Alba Consultor en Asuntos Bancarios y Económicos Panamá.
professional associations to adopt rules considered excessive and unjustified, which generate a significant change in The means by which countries can relations with customers and authorities, and their services adopt rules for the prevention of less competitive in the field national and international; conmoney laundering and terrorist fi- fusion in the Recommendations themselves regarding the nancing by lawyers are diverse: scope relative to the universe of independent lawyers and type of transactions you engage with your customers; the questionable methodological rigor in the typologies developed by the FATF to justify their recommendations; the diffi1. Initiatives to raise standards of professional integrity, culties of monitoring and control attributable to self-regula2. Vulnerability self-valuation of legal services to the tion; the lack of pressure FATF and other governments and offenses, organizations and the governments and countries according 3. Pressure services correspondents, to their assessments don’t adopt the recommendations for 4. Pressure countries and various agencies, lawyers; poor results in the implementation of recommen5. Demands from foreign governments, dations from countries of the European Union and the lack 6. Fulfillment of commitments transaparencia on tax inof pressure FATF their own members, especially the US. formation exchange, and finally 7. For compliance with the Recommendations of the FiThese limiting factors mean a permanent impasse in the nancial Action Task Force (FATF). adoption of basic standards of due diligence lawyers? The The FATF Recommendations on combating money laun- opinion of the consultant is that services of lawyers should dering and terrorist financing are undoubtedly the most at least meet standards of due diligence customer knowledcomplete and most important and cover in short pre- ge and report to the authorities, and gradually adopting revention, prosecution of criminals, illegal seizure of as- maining standards compliance. Countries, overcoming fear sets and international information exchange. Preven- assessments agencies FATF, IMF and other agencies must tion, in turn, covers the customer knowledge, reports be able to produce sensible self-assessments of their vulneto authorities, monitoring and control, and sanctions. rability leading to implement them due diligence measures Why in Latin America only Costa Rica in 1998 and Brazil last that are feasible in the context of control and of business. month, have adopted Recommendations (FATF) for lawyers, In this way a solution, and beyond its own contradictions, but the lack of adoption of these recommendations involve a FATF solution provides a mechanism through risk-based conscious willingness of lawyers from other countries to to- approach for lawyers, considering the risks of national, lelerate abuse services for these crimes and predicate offenses? vel of activity and customer level. It is not a magic or instant solution, but a solution path for adoption and impleThe causes are varied: unwillingness of lawyers and their mentation should be studied as part of a continuous policy
. Summary
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CONSULT, DOCTRINE AND JURISPRUDENCE of the countries in defense of its economy and its services and not in the panic of impending assessments FATF, IMF or other bodies or as hasty response to insults countries as a result of such assessments. In the end, what matters is that lawyers apply rules to protect their activity regardless of the source generating the rules. It is a delicate and complex situation which should not underestimate the ability of the FATF from discriminatory measures affecting the reputation and the country’s business and legal service providers.
path.
B. Pathways to adopt and prevention standards by lawyers.
4. The pressure received by the Government or services directly from governments or international organizations. While the US government and international organizations like the UN, the World Bank and the International Monetary Fund are a source of pressure for the adoption and implementation of standards for prevention of money laundering, there is evidence that these pressures are relevant to the lack of adoption of such standards by lawyers.
3. Explicit or implicit pressure from the correspondent re lationship in the service internationally. It is followed in the aspect of customer knowledge for legal service providers in the international arena as a result of correspondent relationship that occurs especially with member countries of the European Union must comply with the Third Directive on money laundering that agency .
I thank the Association of Certified Money Laundering Specialists (ACAMS) the invitation to this its sixth Latin American Conference to participate as moderator of a seminar and briefly the subject of lawyers in the Prevention of Money Laundering in Latin America. The content expressed my views as Consultant and unrelated to temporary services rendered to the Government of Panama, as I presented in the list of speakers. 5. The requirement of compliance with foreign authorities. Must be fulfilled in the aspect of customer knowledge and The standards to combat money laundering (this term provision of reports to the authorities, international legal includes the financing of terrorism) covering the areas services provider with offices in countries that have reguof prevention, enforcement of criminal law offen- lations preventing money laundering. ders, seizure of criminal assets and international exchange of information. Prevention, in turn compri- 6. Transparency rules for the exchange of tax information ses customer knowledge, reporting to authorities, that drives the Organization for Economic Cooperation monitoring and control of compliance and sanctions. and Development (OECD). The commitment to transparency rules that make the exchange of tax information Various mechanisms for a country to determine the and strong pressure from the OECD to be adopted and adoption and application of standards of due diligen- implemented feasible, has had or short term in some Latin ce and other obligations to prevent money laundering by American policy making due diligence equivalent or similawyers in Latin America and elsewhere, whether acting as lar to those on the prevention of money laundering. This freelancers or through signature of legal service providers: is the case of countries that are members of the Global Forum on information exchange OECD, such as Argentina, 1. The initiatives of governments, professional attorney or Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatelawyer at the individual level to raise standards of promala, Mexico, Panama and Uruguay. fessional integrity of its services. No knowledge that has followed this path. 7. With greater force, Recommendations of the Financial Action Task Force (FATF). Although all Latin American 2. The results of a self-assessment of the country by gover- countries are members of regional bodies established by nments, lawyer’s unions or lawyers at the individual level the OECD to promote the adoption and implementation that highlights the vulnerability of legal services to money of the Recommendations and are committed to, only Coslaundering. Nor is there knowledge that has followed this ta Rica in 1998 and Brazil past month have adopted the
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CONSULT, DOCTRINE AND JURISPRUDENCE Recommendations on lawyers by legislation. C. FATF Recommendations for lawyers. The FATF Recommendations on lawyers are: 22. DNFBPs: customer due diligence *. The requirements on customer due diligence and record keeping that appear in Recommendations 10, 11, 12, 15 and 17 shall apply to Non-Financial Businesses and Professions (DNFBPs) in the following situations: (d) Lawyers, notaries, other independent legal professionals and accountants - when preparing to conduct transactions or perform transactions for their clients on the following activities: • buying and selling of real estate; • management of money, securities or other assets of the client; • management of bank, savings or securities; • organization of contributions for the creation, operation or management of companies; • creation, operation or management of legal persons or other legal arrangements, and buying and selling of business entities. (e) Providers trust and company service - when preparing to transact or carry out transactions for a client on the following activities: • acting as agent of creation of legal persons; • acting as (or arranging for another person to act as) a director or agent of a company, a partner of a partnership or a similar position in relation to other legal persons; • provision of a registered office, business address or accommodation, correspondence or administrative address for a company, corporation or other legal person or structure; • acting as (or arranging for another person to act as) as trustee of an express trust or performing the equivalent function for another form of legal structure; • acting as (or arranging for another person to act as) as a nominee shareholder for another person. (*) 10. Customer due diligence *. Should be prohibited financial institutions to keep anonymous accounts or accounts in obviously fictitious names.
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Should be required financial institutions to undertake measures Customer Due Diligence (CDD) when: • (i) establish trade relations; • (ii) carry out occasional transactions: (i) above the applicable designated threshold (USD / EUR 15,000); or (ii) are to wire transfers in the circumstances covered by the Interpretative Note to Recommendation 16; • (iii) there is a suspicion of money laundering or terrorist financing; or • (iv) the financial institution has doubts about the veracity or adequacy of identification data previously obtained customer. The principle that financial institutions should conduct CDD should be reflected in the law. Each country can determine how specific CDD obligations imposed either by law or coercion. CDD measures to be taken are: (a) Customer identification and verification of customer identity using documents, data or reliable information from independent sources. (b) Identifying the beneficial owner and taking reasonable steps to verify the identity of the beneficial measures, so that the financial institution is satisfied that it knows who the beneficial owner. For legal persons and other legal structures, this should include financial institutions understand the structure of ownership and control of the customer. (c) Understand, and as appropriate, information on the purpose and intended nature of the business relationship give. (d) Conducting ongoing due diligence on the business relationship and examine the transactions carried out over this relationship to ensure that the transactions made correspond with the knowledge that my organization has on the customer, their business and risk profile including, when necessary, the source of funds. Should be required financial institutions to apply each of the CDD measures in (a) to (d) above, but must determine the extent of such measures using a risk-based approach (RBA) in accordance with the Interpretative Notes ap-
CONSULT, DOCTRINE AND JURISPRUDENCE proach of this Recommendation and Recommendation 1. Should be required financial institutions to verify identity of customer and the beneficiary before or during the course of establishing a business relationship or conducting transactions for occasional customers. Countries may permit financial institutions to complete verification as soon as reasonably practical after establishment of the relationship, when risks of money laundering and terrorist financing are managed effectively and where it’s essential not to interrupt the normal course of activity. When the financial institution is unable to comply with applicable requirements in paragraphs (a) to (d) above (subject to modification according to the scope of measures starting from a risk-based approach) should require this to don’t open the account, commence business relations or perform the transaction; or should be required to terminate the business relationship; and should consider making a suspicious transaction report to client. These requirements should be applied to all new customers, though financial institutions should also apply this Recommendation to existing customers considering the materiality and risk, and should conduct due diligence on such existing relationships at appropriate times.
relationship or after occasional date transaction effected. Should be required to financial institutions by law to keep records of transactions and information obtained through the CDD measures. CDD information and transaction records should be available to local authorities with permission. Additional measures for clients and specific activities. 12. Politically exposed persons*. Should be required to financial institutions with respect to Politically Exposed Persons (PEP) (whether a customer or beneficial), which also run standard measures of customer due diligence: (a) has suitable risk management systems to determine whether the customer or the beneficial owner is a politically exposed person; (b) obtain approval from senior management to establish (or continue, in the case of existing customers) these trade relations; (c) take reasonable measures to establish the source of wealth and source of funds; and (d) conduct enhanced ongoing monitoring of the business relationship.
Should be required financial institutions to take reaso11. Maintenance of records. nable measures to determine if a customer or beneficial Should be required financial institutions to maintain, for a owner is a local PEP or a person who is or who has been period of at least five years, all necessary records on tran- entrusted with a prominent role in an international orgasactions, both local and international, to enable them to nization. Where a riskier business relationship with such comply swiftly with information requests issued by compe- persons should be required financial institutions to impletent authorities. These records must be sufficient to permit ment measures referred to in paragraphs (b), (c) and (d). reconstruction of individual transactions (including the amounts and types of currency involved, if any) so that evi- The requirements for all types of PEP should also apply dence is offered, if necessary, to prosecute criminal activity. to family members or close associates of such PEP. Should be required financial institutions to maintain all records obtained through CDD measures (ie.: copies or records of official identification documents like passports, identity cards, driving licenses or similar documents), account files and correspondence business, including the results of the analyzes have been performed (ie.: investigations to establish the background and purpose of complex, unusual large transactions), for a period of at least five years after completion of the business
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15. New technologies. Countries and financial institutions should identify and assess risks of money laundering or terrorist financing that may arise with respect to: (a) development of new products and new business practices, including new delivery mechanisms, and (b) the use of new technologies or developing technologies for both new products as those that existed before. For financial institutions, this risk assessment should be
CONSULT, DOCTRINE AND JURISPRUDENCE done before launch of new products, business practices or use try are adequately mitigated by AML/CFT policy group. of new or developing technologies. Countries should take 23. DNFBPs: Other measures*. appropriate measures to manage and mitigate those risks. Delegation Controls and Financial Groups. The requirements set out in Recommendations 18 to 21 (*) apply to all designated non-financial activities 17. Delegation to third *. and professions, subject to the following requirements: Countries may permit financial institutions to dele- (a) Should be required to lawyers, notaries, other gate to third parties to implement the items (a) - (c) independent legal professionals and accountants to reof the CDD measures set out in Recommendation port suspicious transactions when, on behalf of a client 10 or brokering activities, provided the criteria defi- or a client, they engage in a financial transaction in rened below are met. When this delegation is permit- lation to the activities described in paragraph (d) of 22. ted, the ultimate responsibility for CDD measures con- Recommendation strongly encourages all countries to tinues in the financial institution delegated to third. extend the reporting requirement to the rest of the professional activities of accountants, including auditing. (b) Should be required to providers of trust and The criteria that must be met are: company service to report suspicious transactions (a) A financial institution relying upon a third party for a client when, on behalf of the client or the client, should obtain the necessary information about the items they engage in a transaction in relation to the activi(a) immediately - (c) of the CDD measures set out in Reties referred to in paragraph (e) Recommendation 22. commendation 10. (b) Financial institutions should give suitable to be conD. Elements affecting the adoption and implementation of vinced that the third step will provide, upon request and without delay, copies of identification data and other rele- the Recommendations. The arguments or reasons, originating from different souvant documentation relating to CDD requirements. rces, explaining the low adoption of the FATF Recom(c) The financial institution must be convinced that the mendations for lawyers in Latin America are presented: third party is regulated, is supervised or monitored for requirements CDD and record keeping, and has measures in place to comply with them, according to Recommenda- 1. Lawyers are reluctant to implement measures that they are expensive, which significantly alter the rules of protions 10 and 11. (d) In determining which countries may the third to com- vision of services, which have an adverse effect on their relationships with their customers and authorities that ply with the conditions, countries should consider availatheir services less competitive internationally and affect ble information on the level of risk in the country. negatively some principles of the profession. This doesn’t When a financial institution delegated to third part of the imply an attitude of consciously encourage abuse of their same financial group, and (i) the group applies CDD requi- services to make money laundering rements and record keeping in line with Recommendations 10, 11 and 12 as well as programs against money laundering 2. The economic and political power of attorneys and and terrorist financing, in accordance with Recommenda- their national and international committees allows them tion 18; and (ii) where the effective implementation of tho- to make strong pressure on governments to express their se requirements CDD and record keeping as well as AML/ refusal or unwillingness to Recommendations. CFT programs is supervised at group level by a competent authority, the competent authorities may then consider 3. The FATF Recommendations explained in detail the that the financial institution applies measures within sub- steps of adoption and implementation. However, no sections (b) and (c) above through its group program, and adequate and convincing based application to lawyers. In may decide that subsection (d) is not a necessary precondi- its Typologies exercises, FATF reaching generalizations of tion for the delegation when the increased risk of a coun- dubious scientific value of case-based exercises that are
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CONSULT, DOCTRINE AND JURISPRUDENCE not necessarily representative of a universe of Service vulnerability to potential abuse by criminals. However, other studies indicate greater professionalism abuse of legal services by criminals. 4. No clear conclusions on benefit-cost for the country that cause the adoption and implementation of recommendations in terms of reduction of attempts and acts of abuse services, imposition of criminal law offenders and lawyers that facilitate abuse, seizures assets of illegal origin and reducing the underlying offenses. 5. As regards the specific content of the recommendations apply to a universe of giant, unwieldy professionals, as they are defined in Recommendation “independent” lawyers and law firms. Furthermore, it doesn’t adequately explain the types of transactions in which “involves” the lawyers subjects obliged to comply. 6. No monitoring and control mechanisms which are responsible agencies of the Public Sector. The mechanism based on self regulation by professional attorney has proved in practice to be impractical because, among other reasons, no coercive measures for the implementation of standards. 7. Recommendation reports to the authorities and especially on Suspicious Transaction Reporting may conflict with the duty of professional secrecy of lawyer and his clients in certain situations. 8. To date can’t be validly argued that the lack of adoption of Recommendations exposes the country to negative evaluations and subsequent implementation of measures affecting the reputation or will cause economic damage because assessments so far not taken as a matter of crucial lack of incorporation of lawyers to Recommendations. As an example, none of the qualified by the FATF as noncompliant or low achievers of the FATF Recommendations it was because lawyers are not incorporated into the recommendations, but because of default of other Latin American countries Recommendations. It is the situation of Argentina, Bolivia, Brazil, Cuba, Ecuador and Nicaragua. 9. At the global level, the FATF unable to compel the US,
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its operator and principal economic and political support to adopt the standards for lawyers. The reporting of suspicious transactions in Europe is a failure, as recognized by the European Association. Organizations such as the American Bar Association and the European Association of Lawyers maintain a strong and ongoing campaign against the adoption of the FATF standards for lawyers. E. Conclusions and recommendations. The above problems shouldn’t become a permanent impasse. Each country and its national authorities should establish a constructive dialogue with its legal professionals that is mutually beneficial to establish effective systems to fight his legal professionals that is mutually beneficial to establish effective systems to combat money laundering and financing of terrorism. “ This dialogue should start from a national self-assessment to establish degrees of Service Vulnerability to possible abuse of money laundering. What is important, as a matter of substance, it is necessary to adopt measures to protect the activity of lawyers and other service activities, regardless of the source of the respective standards. However, it is a delicate and complex situation should not underestimate the ability of the FATF to apply discriminatory qualifications and other measures affecting the reputation and services of countries and respective legal services providers. At a minimum, the obligations of lawyers should include due diligence measures on customer knowledge and collaboration with the authorities in a framework of obedience to the rule of law and respect for confidentiality of information. It is precisely the FATF, whose rules and procedures are being questioned, the agency that provides an appropriate instrument, without it being the only one to prosecute this dialogue between the authorities and legal professionals. Each country and its national authorities should establish an active dialogue with its legal professionals and other sectors of DNFBPs that is mutually beneficial to establish effective systems to combat money laundering and terrorist financing. By adopting a risk-based approach, it’s possible to ensure that measures to prevent or mitigate money laundering and terrorist financing are commensurate with the
CONSULT, DOCTRINE AND JURISPRUDENCE risks identified. This will allow resources to be allocated in the most efficient manner. The principle is that resources should be directed in accordance with priorities so that the greatest risks receive the highest attention. F. Bibliography. 1. Financial Action Group. International Standards on Money Laundering Showdown assets, financing of terrorism and ProliferaciónRecomendaciones FATF in February 2012. 2. Financial Action Group. GUIDE FOR THE IMPLEMENTATION OF RISK-BASED APPROACH TO THE LEGAL PROFESSION OF SCOPE October 23, 2008. 3. International Financial Action Task Force report on typologies of money laundering and terrorist financing. 2003 – 2004. 4. J. C. SHARMAN. The Money Laundry. Regulating Criminal Finance in the Global Economy. Cornell University Press. 2011.
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5. ALBA, RICARDO M. and ALEMAN, ALVARO: AML/ CFT RISK AND CHALLENGES OF COMPANY AND TRUST SERVICES PROVIDERS OF PANAMA. 2005. 6. Financial Action Group. GUIDE FOR THE IMPLEMENTATION OF RISK-BASED APPROACH TO THE LEGAL PROFESSION OF SCOPE. 2008. 7. REGIONAL TYPES GAFISUD Non-Financial Businesses and Professions (DNFBPs). 2010. 8. Financial Action Group. GUIDE FOR THE IMPLEMENTATION OF RISK-BASED APPROACH TO THE LEGAL PROFESSION OF SCOPE October 23, 2008. 9. Report on typologies of money laundering and terrorist financing 2003 - 2004, issued by the Financial Action Group - FATF. 10. J. C. SHARMAN. The Money Laundry. Regulating Criminal Finance in the Global Economy. Cornell University Press. 2011. 11. ALBA, RICARDO M. AND ALEMAN, ALVARO: AML/CFT RISK AND CHALLENGES OF SERVICES PROVIDERS AND TRUST COMPANY OF PANAMA. 2005.
POLITICS
I
THE GIFT OF THE CALL, ABSENT IN POLITICAL LEADERSHIP Rafael Fernรกndez Lara rbcweb@rbc.com.pa
always thought that political leaders must possess the gift of the call on those who fo- Although it has been reduced number of political llow or are active in their own political groups. leaders who for several decades ago conquered many by eloquence, intelligence, dynamism, couWhen we analyzed the effect of political groups and rage, sacrifice, integrity and charisma, they reaffirleaders who run them both in our country and in med their leadership because they were willing to other nations, we conclude that leadership charac- work for the benefit of the country, thinking always terized by the power to summon the population is majorities in need, leaving a trail of meritorious part of our history, at least until a few decades ago career that is collected by the annals of history. passes, and does not, unfortunately, in the present. Clearly the population claiming leadership of true leaders, capable of carrying forward human This statement begs the question, why ceased groups, development, overcoming life of each to exist those leaders of the past, which caused that form, leaders of integrity, without any flaw much impact on our national political future? that can stop the willingness to serve the counIf we doubt that at some point we got to have try, which are liable to face problems with couleaders that complemented with this special fea- rage and resolve with goals not only for himself ture, would be sufficient to examine our republi- but also for others, especially those most in need. can political history, to emphasize that existed although few, counted on the fingers of one hand. The innate ability to command certain people Whether we believe that political parties have cea- and have a positive leadership in their environsed to play, for many reasons, the role that the public ment, sometimes through its mere presence, expects of them in democratic activity in the coun- by his charisma, inspiring those around him in try, following ideological weakening in part, and in- order to get the better of them, feeling his focreasing lack of credibility of the population towards llowers are identified with him because his pothem, one of the reasons, among others, would be litical career has been recognized for his dediabsence of true partisan political leaders who are cation, his example uplifting, sacrifice, by exiles inspirational and have the will and ability to sum- suffered by the betrayals and credibility foolproof. mon the population because they believe in them.
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POLITICS Those leaders of the past, with its good and bad, some more than others, created confidence and inspiration, not content with the status quo of the moment, leading his followers and fellow action and this change were effective to develop a national and transferable project that distinguished from others, taking risks and experiencing difficult times, leading by example, ensuring that the people continue indulging in them. Today in our republic lack true leadership. The genuine leader is not born, is done with integrity and dedication to others always looking to the future with optimism. The lack of these is an issue that everyone should not worry. Hopefully motivate young people, which today is virtually impossible, but not why we lose hope.
Belisario Porras
At present there is no political leader or political party that has the gift to summon his people in large demonstrations for any action, because obviously, although some don’t acknowledge, that phrase longstanding “nobody believes anyone “begins to be permanently present in the minds and hearts of the people. Our country had leaders largely with features like we mentioned that we remember because they exercised political leadership of importance, as Dr. Belisario Porras and Dr. Arnulfo Arias among a few others. Simply deeply reviewing his career, to know why they were trustees of the trust and preference of most of his people, being elected several times to the high office of President of the Republic, reaffirming its partisan political ideology and creating their own why they always had the gift of the call, which unfortunately today no political party, much less those who run them, they have it. L&E
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Arnulfo Arias
PANAMANIAN ECONOMY
EVOLUTION OF PANAMANIAN
PUBLIC DEBT PERIOD 1990-2014
Adolfo Quintero - Economista rbcweb@rbc.com.pa
A major concern has been the Panamanian nation constitutes the evolution of public debt. With the return to democracy in 1990, a central problem of debt commitments that were not honored by the President Endara before the government and the status of Panama was found. “COUNTRY NOT SUBJECT TO CREDIT”
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PANAMANIAN ECONOMY
T
he creativity of Panamanians to achieve consensus and bring the country out of the inherited economic and financial situation led to the development of financial and economic mechanisms that over time have allowed our country to reach the level of investment longed world economies and especially by developing countries. The search macro fiscal balance by the forces of our country, also generated the need to create the Fiscal Responsibility Law 20 of 2002 and Act 34 of Social Responsibility Fiscal 2008. Although the two laws when projected revenues couldn’t be achieved, there was the need to reduce public spending and achieve a national agreement to boost the Panamanian economy.
dent Ricardo Martinelli. Not to mention the balances of debt turnkey programs. In other words it will be more of the same, “no proper management of public finances” with greater debt burden for the Panamanian people.
GUILLERMO ENDARA PERIOD The government of Guillermo Endara had to face serious economic, financial and social crisis post invasion of 20 December 1989. It remained arrears with international financial institutions and the Paris Club. By 1992 these commitments were canceled, which allowed Panama could achieve new financing plan for economic and social development was established.
Importantly, governments of Ernesto Perez Balladares and Martín Torrijos distinguished by an appropriate debt Also had debt with Venezuela and Mexico by management that allowed surplus in public finances. way of San José Agreement for the supply of oil. Parameters used by forces of our country, seem to have varied from state policies to existing Government policies, risking our opinion the Panama investment grade. This is demonstrated by the four increases fiscal deficit ceiling during the administration of Ricardo Martinelli, which were contrary to the provisions of Law 34 of 2008. Even the new government will require an increase in the fiscal deficit ceiling for end of the year 2014. Another worrying factor is the projected increase in public debt established by officials from the Ministry of Finance in the government of Mr. Martinelli. For the fiscal period 20152019 Panamanian government debt he estimates will increase from 17,639.5 million dollars (this figure doesn’t include the balances of turnkey projects or debt of three companies removed NFPS) to 26.126 million Balboas at end of 2019.
The National Bank of Panama and Social Security were the two institutions that provided the largest source of funding to the Government of the last military period. The National Bank overdrafts and promissory notes in favor of the Social Security Fund were the keynote of the latter pre-invasion period since nonpayment of international commitments had closed the door to our country, declaring “NO CREDIT SUBJECT COUNTRY”. During this presidential term, labor debt payments were made through LOAN TITLES. These securities pay allowed comply with the pending labor liabilities with workers of Panamanian public sector.
Expired debts with suppliers Government, also were To accept the new government programs and public debt honored through the TAX CHECKS, established by Deprojections for five years, Panama not only jeopardizes cree No. 16 of 30 May 1991. These commitments of vatheir investment grade but the increase in public debt lidity expired in some cases had a date of origin 1980 . of more than 8,000.0 million, will be higher than Presi-
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PANAMANIAN ECONOMY Domestic debt was reflected in Domestic Bonds up. Within the debt management through Cabinet Decree No. 34 of August 5, 1992, we proceeded with the exchange of bonds for new bonds vanquished, like issuing new bonds for economic program of the national government. The same treatment was performed with the Foreign Bonds by agreement with the committee of creditor banks and international financial institu-
tions. In these agreements the maturity thereof extended, providing better financial picture of our country. With all these actions beginning was given the right macrofiscal management of the Panamanian economy.
Guillermo Endara Period Ending President Endara was achieved canceled due and interest owed. The public debt grew to 984.9 million Balboas in five years. This means an average of 196.9 million Balboas annual increase.
vement in investment, producing a less state intervention in all possible economic aspects. Voluntary Retirement Program for Public Servants was created. The law governing the privatization of enterprises, state assets and services is approved. In this five-year government bond rose Although the situation of Panamanian economy when go- only 15.5%, one of the lowest in the 25 years of the period. vernment was received, was launched a program of state policy for macro-fiscal balance. Similarly, national and foreign private investment is encouraged through tax incentive policies, accompanied by a reduction in state invol-
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ECONOMÍA PANAMEÑA ERNESTO PÉREZ BALLADARES PERIOD With Balladares opening of Panamanian economy deepens and economic structural adjustment plans for our country materialize. The country evinced continuity of state policy in public administration. This generated international confidence. Thus, as we proceed to the sale of shares of public companies, among these the most important and most valuable: the electricity distribution company, telecommunications company, ports on both seaboard and cellular telephony.
Regarding management of public debt in 1996, with the issuance of Brady bonds, foreign debt was reduced by an amount of 828.6 million Balboas. As a result, smallest increase in public debt Panama 1990--2014 study period was recorded. The increase in debt was in the order of 5% in five years of President Ernesto Perez Balladares. Treasuries were also issued to redeem 67% tax checks, which were issued in Endara government.
Ernesto Pérez Balladares As a result of the restructuring of external debt, it increased in the five years of the presidency of Perez Balladares 35.9 million Balboas, in percentage terms, an increase of 0.6%. Analyzing the absolute change in debt in the period, it was increased by 73.6 million Balboas annual average. Within fiscal policy, period was characterized by fiscal surplus, giving confidence to domestic and foreign private investment. As for foreign investment by asset acquisitions Panamanian State which in most cases were companies with monopoly characteristics. The Trust Fund for Development was established with the proceeds of the sale of shares of privatized public enterprises. Special retire-
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ment laws are removed by its impact on public finances. During the period, Panama joined World Trade Organization. Panama’s economy through laws such as Universal tax incentives, creating entities such as the regulator of the Public Service Commission of Free Competition and Consumer Affairs, Banking Superintendency is open. The Ministry of Finance is also created, integrating the Ministry of Finance and Treasury and Planning and Economic Policy.
ECONOMĂ?A PANAMEĂ‘A MIREYA MOSCOSO PERIOD
cyclical policy including 20 Fiscal Responsibility Act of 2002. Among the measures adopted was the exterThe period of President Mireya Moscoso was characte- nal and internal debt with an average increase of 19.4% rized by economic slowdown despite the total return to in both types of debt within five years of management. Panama of goods and services of the waterway in December 1999. In 2001, economy was virtually recession Regarding foreign debt, three new global bonds, glolevel real growth of 0.6%. This forced the adjustment of bal bond 2012 for 500 million Balboas 10 years in the budget, which meant a policy of austerity in public three phases were issued; 2023 global bond totaspending and get a national consensus on economic mea- ling 430.0 million to 20 years and the 2029 global sures to overcome existing economic crisis. Among mea- bond worth 500 million Balboas a period of 30 years. sures that were proposed by government, including sale of the assets of TRUST FUND for the payment of debt, For domestic debt in the period were issued in the loa proposal that was rejected by forces of the country. cal market recognition Bonds, Treasury Bonds and Treasury Bills placement. Domestic debt is also plaAdditionally, some of the measures was the tax reform ced through the new Treasury Notes three-year term. where services were added in paying Transfer Tax Assets (ITBM), now would be (ITBMS). The period was characterized by significant declines in tax revenues (Income Tax and ITBM Tax). This reduction in tax revenues was accompanied by the fall in foreign direct investment.
Within the concept of management of public debt, there was reduction of Brady bonds for 488.2 million Balboas by purchasing them on the secondary market at a value of 399.5 million, yielding savings worth 88.7 million Balboas . This payment was Adverse near stagnation that crossed the Panama- made with the proceeds of the global bond 2029. nian economy, forced the development of a counter-
Mireya Moscoso
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This would be the first time that the increase in Panamanian public debt exceeds 1,200 million Balboas in a presidential period of five years post invasion. The average annual increase public debt during the President Moscoso was 297.8 million Balboas.
PANAMANIAN ECONOMY MARTIN TORRIJOS PERIOD
llion. In percentage terms the weighted average interest rate of 9.143% was reduced to 6.7% weighted aveOne goal of President Torrijos was the sustained rage, generating savings that the country’s finances. growth of economy through state reform, including fiscal and tax reforms to increase government reve- Also in that process of debt reduction, in July 2006, was nues, plus the comprehensive reform of the Orga- paid in advance Brady bonds outstanding on the date nic Law of Social Security with emphasis on financial 2014, 2016 and 2026. This not only reduced the cost of debt sustainability for its main programs that evidenced but allowed improve conditions funding for our country. by then serious operations and actuarial deficits, and thus realize the economic and social plan layout. In the domestic market domestic debt at 680.8 million Balboas, ie, that there was a reduction of 26.4% in the Within the concept of proper management of public debt, same period of analysis was reduced. Importantly, was debt restructuring that allowed extend average maturity the only time reducing some of the debts of either experiod of it and reduce the cost of financing, obtaining ternal or internal public sector is presented. Interlower interest rates on debt issuance were performed. The est rates took advantage in the cost of existing debt financial strategy was to generate current savings to finan- in international financial markets. In 2007, debts to ce a portion of the investment program to rely less on debt. the Panamanian public sector with the Social Security Fund in the amount of 361.4 million were canceled. The Global Bond 2036 was issued in the amount of 1,363.3 million Balboas at an interest rate of 6.7%. With This debt management allowed Panama pasthat issue global bonds were removed in 2020 rate of sed a DEBT/GDP ratio of 70.3% in 2004, to 10.75%; 2023 global bonds at a rate of 9.375% and 2034 a current 41.9% in 2008 DEBT/GDP ratio. global bonds at 8.125% rate, all these worth 1,062.2 mi-
MartĂn Torrijos
The average annual growth of public debt during this period was 323.8 million Balboas per year. In percentage terms, growth of debt in five-year rule was 17.6%. In the Torrijos, Panama Canal expansion is approved, Act 41 of multinational companies establishing operations in Panama, tax reforms to increase state revenues is presented. Domestic and foreign investment that allowed the highest growth of economy of the 25 years under study is driven.
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PANAMANIAN ECONOMY RICARDO MARTINELLI PERIOD At the beginning of presidential term of Mr. Martinelli, was intended, within the concept of proper management of public debt, making debt restructuring that would extend period average maturity of it and reduce cost of financing, obtaining interest rates more low debt issuance. However, this object is away from the reality of decisions about borrowing and responsible management of resources and capabilities of the country. The increase in external debt was the greatest of all periods analyzed, reaching 48.6%. Similarly, domestic debt had the highest increases in the republican history of Panama remains a 132.9%. Registered public debt grew under President Ricardo Martinelli in 63.3% in five years in office.
by inadequate management of public debt that has put into perspective the possible loss of investment grade country. We observed weak integrated planning of mega projects haven’t only threaten the financial position of the country but they haven’t had the expected impact, and in some cases haven’t been finalized. The key projects exceeded hands 6,000.0 million Balboas. To this must be added the three companies removed from the register of nonfinancial public sector (ETESA, ENA, TOCUMEN SA), which acquired loans totaling more than 2,500.0 million Balboas. In the case of turnkey projects only the share of the payment is recorded as budget and in the case of the three public companies listed debts acquired are not recorded. This means that the debt recorded during the period of Mr. Martinelli doesn’t cover debt balances turnkey projects or debt of the three companies mentioned above.
The administration of President Martinelli, distinguished
Ricardo Martinelli Joining these commitments Panama’s public debt in the period of Mr. Martinelli (excluding the three withdrawals companies NFPS) not only double the debt stock of Panama in five years it would be the highest public debt in 105 years republic of Panama, if we compare the history of the debt of the Panamanian economy with the management of public debt management.
must add 1,046.4 million Balboas balances Turnkey, 2556.8 million deferred payment contracts for works by generating a total public debt of 21,242.7 million Balboas.
The average annual increase in debt over the five years of the President Martinelli was in the amount of 1367.5 million Balboas annual. In this situation we must add an event without precedent, from January to March The balance of the debt recorded at June 30, 2014, we 2014, 1,331.1 million debt contracted. That is, what is hired on average in a year, was done in three months.
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PANAMANIAN ECONOMY SUMMARY OF PUBLIC DEBT INCREASING OF PANAMA FOR PRESIDENTIAL PERIOD AND DEBT/GDP RATIO If we break down public debt increases by presidential term, greater consistency in beginning the period of Guillermo Endara until the period of Martin Torrijos is observed as a state policy in the pursuit of macro-fiscal balance that allowed our country to attain the degree investment in the evaluation of our economy. This is demonstrated when following the global financial and economic crisis that began in 2008, Panama was one of the few economies in the world that experienced growth. In the midst of this global crisis, measures since August 2008, which allowed our economy had a real growth of 3.9% in 2009 were taken.
When we analyze the period of President Ricardo Martinelli, figures show the exorbitant and unnecessary increase in Panamanian public debt and validation of executed projects and targets not fit in with the reality of them. In five years the increase in debt in relation to the previous 20 years that the macro-fiscal balance as state policies sought doubled. During the administration of Mr. Martinelli, settled policy of government with a weak comprehensive planning, and little prudence in the management of public debt.
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PANAMANIAN ECONOMY The Debt / GDP shows the end of the term of President Martinelli a setback in terms of the trend that had been occurring in our country since 2008. In a debt / GDP ratio of 41.9 % in 2008, will step into a relationship 45.0 % in June 2014. This is taken as the commitments and unregistered , excluding loan balances of the three companies removed from the nonfinancial public sector .
OUTLOOK
nies removed from the nonfinancial public sector (NFPS ).
If the government of President Juan Carlos Varela, makes as his projected public debt established by the responsible for it within the Ministry of Finance during the administration of Mr. Martinelli, for the period 2015 to 2019, it jeopardizes the investment grade of our country and has been the effort to responsibly of every president since Mr. Endara to the presidency of Mr. Torrijos. This is supported by the fact that the debt recorded until June 30, 2014 is 17,639.5 million Balboas. For the June 30, 2019, public debt is estimated in the order of 25,650 million Balboas. This would mean an increase of 8,000 million Balboas during the administration of Mr. Varela. These figures increase in debt, will not only superior to the increase during the administration of Mr. Martinelli but neither do they include turnkey projects, liabilities incurred or contracting of the three compa-
The two mass transit projects: metro line two and light rail to the province of Panama Oeste, materialize, should be conducted under the concept of turnkey not to break abruptly with the parameters of debt deficit from the beginning was the spirit of the Law 34 Social Responsibility Fiscal 2008, endorsed by the Council of the National Coalition for Development and all forces in the country.
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The country requires prudence and accountability in the management of public finances. This means prioritizing investments and appropriate use of available resources. L&E
PANAMANIAN ECONOMY
NATIONAL URBAN IPC INCREASE 0.1 PERCENT IN JANUARY
T
he monthly variation of the Consumer Price Index (CPI) in January 2015, a national urban level rose 0.1 percent, other urban areas fell 0.2 percent; while for the districts of Panama and San Miguelito showed no percentage change, the National Institute of Statistics and Census (INEC) of the Comptroller General of the Republic. Seven of the twelve groups that make up the basket (LPC) had increases in their prices; three recorded declines and two were unchanged. The groups had positive changes were: housing, water, electricity and gas, by 1.9 percent, due to price increase in electricity; alcoholic beverages and snuff, 0.7 percent of the rise in the prices of beer; miscellaneous goods and services, 0.7 percent, driven by higher prices in wallets for men. The group that showed the biggest drop is was the furniture, housewares and routine household maintenance, with 3.7 percent, the most significant price declines broom, paper towel and thrifty bulbs. Alcoholic beverages and snuff had hikes, most significant beer, with 0.8 percent; while in the group Housing, water, electricity and gas electricity significant variation highlights, with 4.7 percent. According to INEC, Real Group and various services, had greatest impact Jewellery, clocks and watches, and other personal effects, both with a 0.9 percent rise. Furniture, household items and routine household maintenance were affected by lower clas-
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Fuente: CGRP Contraloría General de la República de Panamá
ses registered non-durable goods for home and small tools and accessories, with 3.7 percent. The Transport and Education groups showed no variation. L&E
PANAMANIAN ECONOMY
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PANAMANIAN ECONOMY
FITCH RATINGS CONFIRMS STRENGTHEN RELATIONS TO THE INVESTMENT GRADE ENSURE CUSTOMS UNION IN CENTRAL AMERICA AND OF PANAMA
F
Fuente: página web MEF Ministerio de Economía y Finánzas
L
PANAMA
Fuente: Alerta de Noticias Tributarias (CIAT)
ooking to promote competitiveness, productivity, growth and sustainable development in countries of region, the Twenty-Eighth Round Customs Union, whose rotating presidency is in charge of Administration of Customs of Guatemala, began initiating with the first days of working with Technical Standards and Computer Groups In its assessment, Fitch Ratings highlights the dy- in each country and whose reports will be discussed in full namism and diversification of the Panamanian eco- by General Directors of Customs in the course of week. itch Ratings has affirmed investment grade sovereign debt of the Republic of Panama, confirming the rating of BBB with a stable outlook, in its latest report on the country, which was published today on its website. Meanwhile, the other two major rating agencies in the world, Standard and Poor’s (BBB stable) and Moody’s (Baa2 stable) had done so previously.
nomy and projected Gross Domestic Product of Panama will grow by 6% annually in the period 2014-2015.
The Mayor of Customs, Lic. Claudia Méndez Asencio expressed the need to strengthen trade and economic rela“This rate is the highest in the BBB category and is mainly tions between countries, to promote full development supported by the expansion of the Interoceanic Waterway companies. “Customs are called to create and implement and their side effects on other logistics activities”, highlighted. strategic and technological measures to facilitate trade within the framework of the Customs Union,” she said. The rating agency based in New York also mentioned the increase in foreign direct investment in mining, energy and tourism, as a factor that could further diversify the Panamanian economy and trade openness of the country and the climate of existing business in the country.
Separately, process of Customs Union which runs parallel with the sister Republic of Honduras is estimated that this set up on December 1 this year, and which is expected later other Central American countries was highlighted According to the report, the moderation of growth in the eco- join to mark a change in customs history of the region. customs union brings challenges and nomy mitigated the risk of overheating and inflation of Pana- The ma has slowed in line with peer countries in investment grade. great opportunities for economic growth in Central America and Panama region. L&E Fitch Ratings recommended the country maintain fiscal prudence and meet deficit limits established in the Law on Fiscal Social Responsibility. L&E
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WORLD ECONOMY OPEN ACCESS IN REGULATED MARKETS AND ECONOMIC DEVELOPMENT
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atin America is in a critical economic times in its history; It is time when the subcontinent, making better use of their resources, can compete on equal terms with manufacturing, industrial, services and powers - why not say so technology that almost traditional way, hold dominance in their respective markets. But the journey of our block, characterized by a progressive mentality and an avowed respect for economic freedoms of private, not exempt of crossroads they arise as the economy benefits from the efforts of several generations pulse.
Diego Gallardo Casal rbcweb@rbc.com.pa
electricity, derived from industrial growth, adjusting the electrical supply to this new demand and the necessary increase in generation (always keeping the north regulatory legislation allowing development projects to a sustainable level of competitiveness) They are phenomena whose horizons are lower than those handled for works aimed at strengthening transmission networks or interconnected transmission systems. The result? Network overload, bottlenecks in the office of energy due to insufficient capacity of the system to allow for the bulging demand immediate withdrawal or injection of all actors, increasing instability in networks due to lack asset replacement against possible failures (see mandatory criterion reserve teams cold “n-1” in European legislation), to which you are obviously adds rising energy prices due to what we call, “shortage congestion”.
An example of this is conflict that arises when the focus is on economic growth, usually based on competitiveness, and sustainable infrastructure development is delayed. As a result, we find countries with economic and trade physical assets that quickly fall into failure or obsolescence against the abrupt increase in activity that economic growth implies. It is under this context that the respect for economic rights of individual states by legislator or authority, We note that the “momentum” of economic growth broadly and in cases like Chilean law, trimmed absoluof a country must sometimes wait for the ac- te. This, following the principles of economic public potual development provide a sufficiently robust in- licy, competition and economic justice, guidelines chafrastructure to maintain, without adversely affec- racteristics of contemporary Latin American economy. ting other aspects such as quality and safety of service, growth rate that the country is able to deploy. And it’s with this in mind that the legislature assures individuals the right to enter the electricity marConsider the case of high voltage electrical networks ket, both injection and withdrawal. Such is the Open that supply energy to the country. Growing demand for Access, which, as can be anticipated, it is considered
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WORLD ECONOMY a burden than a right, as it weighs about the stigma of being a state taxation to monopoly, which forces him to incur inefficiencies (operational, continuity service, responsibility, financial and security) to allow extraneous equipment installed in own assets. Described above is not only applicable to the electricity market, but all those that are public service, like water companies, telecommunications companies, auto road or public transport, among others. This was due to the aforementioned markets, assets (essential facilities or Essential Facilities) not only constitute the bulk of the business, but on being strategic, such as port terminals, or hugely expensive, as in motorway concessions, it’s more efficient economically and physically not duplicate investments and that a monopoly undertaking the market as a monopolist. We can conceive a melting pot of solutions that both the legislature and the administration can take to resolve the apparent conflict arises between the need for structural development of a system versus the immediate satisfaction of growing demand, but the fact is that politically is costly involved in projects that bear fruit only in the medium to long term, and that current economic pressures can affect the continuity of a government plan, even the most visionary. Panama is in privileged position of being able to satisfy both needs in parallel, due to a healthy economy and liquid, with an optimistic but predictable economic projection, whereas 15 years alone, the most strategic economic asset of America has now administered by the state and recent atmosphere of political stability that international opinion perceives since last change of government. This has turned eyes of foreign investors into the country. Whatever solution finally adopted to solve both these problems as all associated with development of the
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nation, we believe that conditions for all are the balance in regulation of markets, the probity of administration, respect for environment under international standards, and developing domestic product. L&E
WORLD ECONOMY
IT’S TIME TO START THE AGENDA OF THE G-20: THE ECONOMY WORLD WILL THANK
I
mplementation, Investment and Inclusion: these three objectives in economic policy will dominate the agenda of the G-20 this year and the first meeting of finance ministers and central bank governors to be held in Istanbul. As recently noted by the Prime Minister of Turkey, Ahmet Davutoğlu: “The time to act”, şimdi zamanı uygulama.
Fuente: FMI
A major risk comes from what I call the “asynchronous monetary policy”, ie, normalization of monetary policy in US while most other countries increase the monetary stimulus. Even if properly managed, this process can trigger excessive volatility in financial markets to the extent that investors reassess their risk perception.
Much is at stake. Without action, the great ship is the world economy could go aground in the sha- A second risk is the strengthening US dollar. The llow waters of low growth and low job creation. The- emerging markets are particularly vulnerable berefore it is necessary to focus on these three “I”: cause, in the past five years, many of its banks and companies increased their borrowing in dollars.
1. Implementation: Promises to Keep
Immediate challenge for the economies of G-20 is to implement commitments made at the Summit in Brisbane in November. If you meet these commitments may add more than $ 2 billion to global economy and create millions of new jobs over next four years. IMF has been entrusted with task of monitoring implementation of this growth strategy, which will make country-by-country, reform by reform. The benefits are huge, and add to the potential additional stimulus posed by recent reductions in oil prices. Still, the global economy also faces considerable downside risks. That is why, despite the decline in oil prices and strong US growth, the IMF cut its global growth forecasts for 2015 and 2016 (3.5% and 3.7%).
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Another risk is that the euro area and Japan is caught in a cloud of low growth and low inflation for a prolonged period. This situation of low levels in both indexes pose a risk of recession and deflation, because further complicate the task for many countries to reduce unemployment and high debt.
WORLD ECONOMY 2. Investment: Focus on the structural
of the fundamental goals, for example, is reduced by 25% gender gap over the next decade. Thus, more than 100 All this suggests that a combination of more vigorous million women would join workforce, which would inpolicies is needed. In many countries remains essential crease global growth and reduce poverty and inequality. to implement loose monetary policies to stimulate deAuthorities should take insmand. In addition, fiscal adjustment piration from countries like should remain as favorable as possible Chile or the Netherlands. for growth and employment. But this is These economies have signot enough. We need a decisive push nificantly increased the parfor structural reforms in trade, educaticipation of women in the tion, health, social safety nets and laworkforce through smart pobor and product markets and efficient licies that promote childcare infrastructure. These reforms will imservices Affordable materniprove the prospects for medium-term ty leave and flexible working. growth potential, and some of them also have a positive short-term effect. It’s also very positive plan of Turkish presidency of G-20 In particular, I strongly support new to make international delarge-scale plan to promote quality velopment a central point investments in infrastructure as part of your program. Later this of growth agenda of the G20. Already year, world authorities seek there has been some progress in this to establish a new set of Susregard. Implementation of compretainable Development Goals hensive investment plan ₏ 315,000 and seek ways of financing. million from European Commission, Based on his extensive work which includes removing regulatory in developing countries, the barriers that have slowed the invesIMF intends to play an imtment- should bring great benefits. portant role in this regard. New trade agreements in the PaciAlready taken measures to fic and the Atlantic could also gehelp countries affected by nerate economic growth, after seEbola. I am pleased that the veral years of slowdown in world trade. In last couple of years, volume of trade has IMF has fulfilled the commitment made by the G-20 increased only 3%, well below average of 7% befo- in Brisbane to provide more funding and debt relief re the crisis. So much room for growth acceleration. to three countries concerned. With the support of our members, we will provide US$ 100 million in debt relief -We’ll be the first multilateral institution to do so3. Growth has to be inclusive and hope to provide additional immediate funding The growth strategy of the G-20 also emphasizes the of $ 160 million (in addition to the $ 130 million proneed for a more inclusive and sustainable growth. One vided in September). In addition, we are seeking additional funds from the international donor community.
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WORLD ECONOMY This year at summit to be held in Paris in December, world leaders will also have the opportunity to reach a comprehensive agreement to reduce carbon emissions. The key is to eliminate energy subsidies. It is encouraging to note the recent decline in subsidies for fossil fuels in countries like Cameroon, Côte d’Ivoire, Egypt, Haiti, India, Indonesia and Malaysia. This measure, which the IMF has been advocating strongly, is beneficial to the environment and growth.
Cooperation is essential Also encouraging is the intention Turkish presidency of the G-20 to increase the degree of influence and credibility of international economic cooperation expanding the range of partners, to include representatives of civil society, research centers, unions and other NGO. This effort puts us in the way of what I call the “new multilateralism”. Of course, that global cooperation is effective efficient institutions to reflect changes in the global economy are needed. As I mentioned, I deeply disappointed that the United States didn’t ratify until late last year the reforms on quota and governance structure agreed in 2010. The IMF Executive Board is considering interim measures, but without losing sight of goal to realize reforms of 2010. Bodes well that this year we meet in Turkey, a country that combines east with the west. To achieve aspirations of the G-20 concrete achievements combine with a strong dose of uygulama be needed. It is time to implement the three “I”. L&E
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WORLD ECONOMY
PRIVATE SECTOR SERVICES AND THE ECONOMY OF CARE, MAIN JOB CREATORS
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he major source of new jobs will be in the private sector services, and administrative services and business services, as well as in the real estate sector, says the latest report of the ILO on employment and social trends in the world. These sectors and other related employ more than one third of the workforce in the world in the next five years.
Fuente: OIT
Increase in skilled jobs and impact on wages and inequality
The transition from employment to services and decline of manufacturing sector imply a change in the skills required by labor market. “Disappearance of jobs that require levels of media skills to perform routine tasks Public health services, education and administra- that can be automated will occur,” said Torres. tion will remain an important source of employment. Although they will increase at a slower pace People who once occupied these jobs must acquiand represent 15 percent of global employment. re new skills or will face the prospect of competing for jobs at lowest level scale of competence. Furthermore, the report indicates that in- Also increases the demand for jobs requiring direct dustrial employment should stabili- interaction, such as health or personal services. This ze globally at a level slightly below 22 percent. indicates the emergence of a vast economy of care. This is due to slowdown in job creation in the construction sector in relation to the period 2012-13, Global trends show significant regional vaalthough probably remain above 2 percent per year riations, with disappearance of medium-skion average. In the manufacturing sector, employment lled jobs at a faster pace in advanced economies levels will remain unchanged over the next five years than in emerging and developing economies. and will represent only 12 percent of all jobs in 2019. This polarization between highly skilled jobs and “Employment in the service sector remains less skilled jobs has a direct impact on labor incothe most dynamic in terms of job creation me. The increase in jobs at both ends of scale of over next five years,” said Raymond Torres, Di- powers at the expense of middle level, has contriburector of Research Department of the ILO. ted to income inequality and continue aggravating it.
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WORLD ECONOMY Consumption and Poverty The evolution of employment also has an impact on consumption levels and poverty. Number of routine jobs such as driver or assembler, has declined in many countries, raising doubts about the ability of industry to help workers out of poverty. No industrial jobs, rural workers have few opportunities to improve their professional status. Highly skilled jobs aren’t accessible to those without formal education and are unable to form. “These trends highlight the role of policies to help companies and workers to seize opportunities associated with new technologies and at the same time, to remove obstacles to climb economic and social level, particularly for women, “concluded Raymond Torres. L&E
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CONSTITUTIONAL CAPSULE WHAT I WANT FOR MY PANAMA?
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he question posed in the title of this paper is that we should be making every citizen of our country. Why now?... Because we are dealing with a promise of ruling Varela to convene a constituent assembly to draft a new Constitution for Panama.
Hopefully achieve the constitutional process involving all citizens to end new constitutional document will feel “While our”. I assumethatthePresidentshallinitiatethecallafterfirsthalf of this year, completed his first year in office, as promised in campaign. The whole process starts with rules of election of constituent that, under the Constitution, it is the responsibility of the Electoral Tribunal. I trust that the Court in its rules achieve a quality design that avoids most current MPs who feel stuck township representatives which hindrances to government. Candidates constituents of the Republic must think only of the Nation, visionary; must depend for its choice solely on public funding. Must have a mature age and a history of honesty (public or private to the nation, as respectable citizens. So back to the question “what do I want for my Panama?...” Want a Constitution as short as possible with general guidelines of our system of government (avoid the detail of clauses such as “children have the right to love,” which is a massive constitution of a neighboring country). I want a constitution whose primary objective is to limit the power that simple. I want the document describing a society from man, not from the economic mechanism. Should prefer the psychological spring man’s initiative, over the heaviness of the administrative bureaucracy. I want to describe a state that is a guarantee of freedom of vulnerable ... at any time a threat to freedom. You must have a just society that seeks the elimination of poverty and privileges as a target. You must be a design of a participatory society. The man just does not participate; must feel that belongs to operate, take initiatives and become an active member of his community. The Constitution should describe a pluralistic society in which the branches of government, economy, mass
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I. Roberto Eisenmann,Jr. Fuente: La Prensa rbcweb@rbc.com.pa
organizations and the media are separate and independent. Economic should seek
to
growth become
social
development.
These are just some general lines that I want for my new Constitution of Panama. I confess idealistic and humanist, while realistic revolutionary. I am conservative versus utopia, and I consider myself progressive front cynicism. I faithfully and fought for government legitimately democratic and participatory institutions. This deep belief ’ve instituted in companies incorporated or me own risk and with proven successes. I am aware that we live in a world not to angels, but to sinners. That the “new man” is authoritarian rhetoric dreamers commanders and priests, because it has never been produced. Luckily, today in my church, Pope Francisco presents his ideas of man, sinful man. How do I describe my beliefs guide my permanent citizen action fight? Politically I am participatory democratic, culturally I am conservative, economically am capitalist democratic, and socially I’m a democratic socialist. How would you describe? Because of this ideological Description depart your ideas you want for the new Constitution of our Panama. Describe and actively participate in the necessary constitutional process ahead. The Constituent is not the solution to all our problems, but together allow us to reinvent the fundamental document of the new Republic we want. L&E
ENVIRONMENTAL CAPSULE APPROVED IN THIRD DEBATE BILL RAISES THE NATIONAL AUTHORITY TO MINISTRY OF ENVIRONMENT A RANGE
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n February 13, 2015 was approved in Third Debate, by plenary of the National Assembly Bill No. 25 of 2014 “which creates the Ministry of Environment, amends provisions of the Aquatic Resources Authority of Panama and other provisions. “ The document was created with the purpose of promoting the incorporation of the environmental variable in State decisions on national development, in order to guarantee a better quality of life for the inhabitants. Its rules fall into four main areas: 1. Environmental governance and political space to inform, consult and realize new solutions; 2. The modernization process of environmental impact assessment; 3. Coastal marine resources from an ecosystem approach; and 4. New topics for modern environmental management. The main changes and amendments made by this Act, the following are highlighted:
ENVIRONMENTAL ASSOCIATIONS • Article 2: a record of environmental organizations in the country is created.
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Anna Marissa Admadé - Abogada anna.admadé@rbc.com.pa
PUBLIC CONSULTATION AND CITIZEN PARTICIPATION • Article 5: Set the mandatory nature of public consultations, expanding its range of application to any item or environmental problem, their size, required to be submitted to the population. • Article 15: the advisory provincial, regional and district level committees with the purpose of serving as a forum for dialogue between civil society and government to discuss environmental issues and make proposals with representatives of each sector are created.
COERCIVE JURISDICTION • Article 9: It establishes coercive jurisdiction for the recovery of sums due to the new Ministry of Environment.
ENVIRONMENTAL IMPACT STUDIES • Article 21: Amendment to Article 24 of Law 41 of 1998 General Environment to provide for the inclusion of mechanisms for citizen participation in the processes of environmental impact assessment. • Article 23: Amendment to Article 30 of Law 41 of 1998
ENVIRONMENTAL CAPSULE General of Environment, in order to empower the new Ministry of Environment to adopt designed to prevent damage to the environment and human health provisional measures, in addition to punishment of stoppage of works for failure to file or execution of EIS, including, in the case of other instruments for environmental management, as applicable.
PRIVATE RESERVES • Article 35: Sets mandatory nature of public consultations, expanding its range of application to any item or environmental problem, their size, required to be submitted to the population.
REFORESTATION INCENTIVES • Article 38: Amendment to Article 73 of Law 41 of 1998 General Environment, to enter faculty of new Ministry of Environment to promote reforestation.
BREACH OF ADDITIONAL LAWS • Articles 47 and 48: Amends Articles 112 and 114 of Act 41 of 1998 General Environment, respectively, in order to introduce the written and/or temporary or permanent suspension of activities, in addition to the fines warning referred earlier in this law and establish its character of independence from the main and accessory penalties provided in complementary raise environmental standards and legal status of offender’s obligation to restore, mitigate and compensate for environmental damage. This Act shall take effect from the day following its promulgation in Official Gazette. L&E
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ENVIRONMENTAL CAPSULE
DISCUSS BILL ON PAYMENTS FOR ENVIRONMENTAL SERVICES
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n August 26, 2014 was approved in First Debate, by the Commission on Population, Environment and Development, the Draft Law No. 40 of 2014 “Regulating the Payment for Environmental Services in the Republic of Panama and dictate other provisions “. The initiative presented by the President of the Commission, Honorable Deputy Jaime Pedrol, aims to create a program of payment for environmental services, such as cost-efficient instrument for the conservation of the natural resource base and adopting harvesting practices sustainable, generating economic benefits for communities and contributing to poverty eradication. The main aspects of this proposal are the following:
CONCEPT • Article 4: Payment for Environmental Services is envisioned as a mechanism for monetary remuneration or compensation, consisting of a direct payment or benefit for maintenance or provision of an environmental service by service users which is intended to suppliers.
USERS • Article 5: Considered as users, the State and all natural and legal persons who take advantage of one or more environmental services and therefore, pay a fee to providers of these environmental services.
INCENTIVES FOR PRIVATE RESERVES • Article 12: The owners of private reserves may choose to apply for a Certificate of Environmental Services, lasting 10 years, equivalent to 3 times the assessed value of land conservation, negotiable document that can be used by the owner or endor-
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Anna Marissa Admadé - Abogada anna.admadé@rbc.com.pa sed to third, for partial or full payment of its obligations to the state.
CONTRIBUTIONS TO PROGRAM • Article 13: is the obligation of users of water resources in general, to use or exploit surface water or groundwater, to make contributions to the Program of Payment for Environmental Services. • Article 14: establishes the obligation of users of the system to make contributions to the Program of Payment for Environmental Services, among which are: o A hundredth of Balboa per liter of petrol or diesel to be payable by all buyers of these products in the Republic of Panama. o A hundredth of Balboa per kilowatt sold by electricity generators to distribution and natural or legal persons with more than 500 KV per site, in Republic of Panama demand. o An annual Balboa room for all tourist accommodations. o Five Balboas per hectare per year monoculture and agro-industrial holdings, except for reforestation of native species and all those subsistence farms. This bill is already on the agenda for discussion in Second Debate in the National Assembly. L&E
ENVIRONMENTAL CAPSULE
OPPORTUNITIES GREEN TO PANAMA
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he most important future for humanity challenge is to reverse the damage to our atmosphere product emissions of greenhouse gases generated mainly by the use of fossil fuels. The climate change we are experiencing excessive gas product that affected the ozone layer will influence temperatures, drafts, intensity and volume of rainfall and end agricultural productivity and food availability. Urgent action is needed in terms of emission reductions, ideally using hybrid or electric vehicles, replacing Pamper sources using fossil fuels like coal, bunker and diesel by Hidricas, solar, wind and biomass plant. This alone will reduce emissions, to reduce CO2 levels in the atmosphere must protect the remaining forests and reforestation in forest production potential. Panama has taken a bold step with the launch of the ALLIANCE FOR THE MILLION hectares of reforested. With emissions of 12 million tons of CO2 that are generated mainly by burning fossil fuels in power generation by thermal power, industry and transport. Panama, BY THE MILLION, could in the near future be in a neutral country emissions than any industrialized country holds. L&E
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Miguel Vallarino ASOCIACION NACIONAL DE REFORESTADORES Y AFINES DE PANAMA rbcweb@rbc.com.pa
EDUCATION CAPSULE SCHOOL YEAR 2015
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Alexander Canto - Maestro de educación
primaria/Colaborador del Dpto. de Archivo archivo2@rbc.com.pa
ducation is a key to success piece and grow infrastructure is concerned, but in turn assured that both personally and occupationally in our society. will be in acceptable condition mostly 90% for thousands of students, this coming March 2, it was emphaIn recent years our education has received signifi- sized that it will review all schools, through My School cant changes that have helped in one way or another First, because difficulties in many of them, which need the teaching process, but despite this, major difficul- extensive repairs and different types of maintenance ties affecting our educational system is still present. are, so the conditioning work of these schools will take place continuously during the course of the school year. We know that school for officers and private schools, period began on February 23. Importantly also focused on a new modality in the methodology for teaching mathemaThus the organization tics and natural sciences, revealing their of school week period full learning program based on play acEach year we ask 2015, was held from 23 tivities to carry out teaching process. to 27 February, where the same question all teachers received Now notice the part of some teachers’ prior training. Officiaunions that contradict the statement by at the beginning of lly the first quarter of the head of education Marcela Vasquez the school year, all 2015 school year beParedes, teachers’ union leader Humbergins March 2 to May 29. to Montero revealed that 70% of schools school facilities are are in crisis that have cracks, roof leaks, nationally ready to Each year we ask the bathrooms in deplorable state, where offisame question at the cials MEDUCA not see the reality on inwelcome all students? beginning of the school frastructure of the college, missing only year, all school facilities a few days before the start of classes. are nationally ready to welcome all students? On the other hand, the Association of Professors of the Republic of Panama (ASOPROF) emphaThe current Minister of Education said that school sized that poor condition of schools is not a problem buildings will not be ready 100% entirely in terms of only in rural areas but also remains inaccessible areas.
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EDUCATION CAPSULE The teachers’ union leader Diogenes Sánchez, explained that the infrastructure problems also show in schools in the capital where problems have been reported, as in the case of the Professional School Isabel Herrera de Obaldía, Rubiano Institute and school José Dolores Moscote which present serious infrastructure problems. The Educational Teaching Unit, also released his view, the worst is that MEDUCA authorities try to divert attention from the population, proposing the transfer of funds to community councils for the maintenance of rural educational institutions, this was expressed by the teachers’ union leader Andrés Gondola and reflected the degree of improvisation by the MEDUCA. Drawing on the above, I believe that we shouldn’t talk about quality of education, but it has the appropriate infrastructure, because it is a determining factor in the process of learning, has spoken to invest in education, to raise the quality of it, have made curriculum changes in the educational structure, have launched programs such as bilingual Panama. Therefore MEDUCA should make a thorough assessment of problems in each of the campuses nationwide, as they have released reports of schools
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in the capital and hinterland, found in unsuitable conditions teach the classes. On the other hand there are areas of difficult access, where students do not have full access to education, as technology books, teaching resources and educational inputs required, face many constraints at present, because it does not have electricity, with drinking water among other things, these are some of the realities that many students living in these remote areas, have equal opportunities condition that students in downtown areas. Culminating that educational changes must go hand in hand with the conditions of the schools, because of no use, make the appropriate changes in the educational structure, if you do not have good infrastructure, must be supplemented. The MEDUCA should pay more attention to these realities everyday living so many teachers and learners in these remote areas of the country and thus seek a solution to provide better opportunities, as we all have the right to receive a good quality education. L&E
FASHION
DRESS FASHION TIPS FOR SPORT AND INFORMAL Nadia Chang - Strada Eleganza rbcweb@rbc.com.pa
We live in a country with only two seasons, and we must adjust our clothes to them, although all year we can use the same clothes, it is appropriate to adapt our outfits to the times in which we find, many of my readers I’m sure they operate in more formal than informal work environments, however we want you to relax without losing the style
with the following guide to dress casual From the point of view of fashion, sport is a very well-defined discipline, where the rigor of everyday attire relaxing. In other words, what is it to adapt tastefully informal circumstances, but not without form.
FASHION
1. Cool Agreements Don’t feel obligated to incorporate a sports garment to your outfit; You can also make your style more cool with the simple expedient of not using or tie or handkerchief. Only buttoning shirt up above and will project a fresher, but even successful air.
2. Round neck sweater The classic sweater we’ve seen a hundred thousand times in American movies where the characters exude considerably; English is called crew neck. To remove similar context in the best possible conditions, what you do is work out the details, for example use with sports shoes, sunglasses, sports watch, keychain, everything, even in a much more forceful way that polo, help slacks integrate better with rest of the outfit.
3. Sports Shoes Don’t be afraid to use casual comfortable tennis or exercise with dress pants. Even in suits have become a trend. And of course you can also forget the socks, because what we want is to see you cool.
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FASHION 4. The Prince of Wales A wool suit with Prince of Wales Design is precisely indicated to embody the gallant who travels the world, is a classic musthave in any wardrobe of a gentleman, that denotes the bearing it who knows a lot of clothing .
5. College Colors Blue, gray, white and beige colors are even used in casual wear will be always elegant.
6. Jacket or gang coat: One often use this garment in a university campus and especially the United States. The sports jacket, by its very nature and customizability, has traditionally been a means of expression values of the group they (the football team, baseball, basketball...) belongs, and usually it is flaunt the colors of the university. Today recirculated and looks a lot like what we saw in the eighties (in Beverly Hills Cop or Back to the Future, for example), although with some clever twists and serve perfectly for rainy days or for trips movies, or of course, also be in the office if your environment permitting.
7. The well-fitting suit: A cutting element indicative of a modern suit is that the bag should be up to the wrist. In general, the adjustment should be close to the body, but loosely. With a checkered pattern surely you will cause sensation, as it is a strong tendency for this season. In addition, we remind you that we don’t see you any inconvenience to dress shoes with rubber soles. What you sacrifice in aesthetics you gain in comfort, especially in insulation.
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FASHION
8. T-shirt Anyone a beach directly below the Sport Jacket or knows that, invariably, some observers go into shock if not several sets. The idea behind this concept is free man, no contracts or bonds. No matter what the other one matching sweater: he didn’t. That is a statement which says a lot.
9. The Trench Coat If you intend to travel in temperate climates, Boquete, Bambito, nothing better to complement the previous concept than a trench coat, reflect that know of style but in the end you care what others say.
10. Accessories Accessories must appear to be randomly selected so as to be seen. The clock is the most important element, with it will enhance any outfit. Sunglasses project a rebellious lifestyle and handkerchiefs announce that indeed know fashion. L&E
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SPORTS CAPSULE Albin Rodríguez albin.rodriguez@rbc.com.pa
PANAMANIAN SOCCER LEAGUE LPF The Club Atlético Independiente is still getting into trouble and the specter of decline appears chase at every stage. Despite their best been strengthened to avoid relegation, the chorrerano whole continues without adding to three. It’s noteworthy that every tournament is more difficult because the teams are reinforced increasingly.
cipation next May 30th against Team 6 times champion in this category, Argentina. Is a promising group that complements Austria and a team from Africa to be defined. Leonardo Pipino, national coach, said after the results of the draw that Argentina will face a “great honor”, because the director of the Panamanian nationality selection is from Argentina.
So far Tournament Leaderboard is well Fought, Because of the competitive tournament. The team of Plaza Amador is commanding at the moment With The team champion San Francisco FC, showing in this tournament That They Want to get to the championship and win.
Since the Panamanian team has faced Argentina in the Under-20, falling by the score of 6-0, then were coached by Dely Valdes July 2007 on the world championship. Also in Austria we faced once in a world in this category remained the score 0-0.
Other teams like the Arab Unido, Alianze, Tauros and Spor- Instead the U-17 Panama is located in San Pedro Sula in ting continue in the Struggle to be in the top four places. Honduras to compete in the pre world in this category.
U20 and U17 Teams The Panamanian Selection Under-20 will begin its parti-
The coach of the Under-17, Juan Carlos Cubilla, took a total of 20 players, most of them active in the LPF. During past two weeks, the selected Cubilla directed four games of preparation, of which he won three and lost one. The first two meetings were before the U-17 Trinidad and Tobago and won both games by a score of 4-0 and 5-0, while the latter two were at the U-17 Cuba before whom a meeting was won by 4-0 and missed the other by 0-1. Hopefully this team to do well in this pre world, so keep it in mind also in the U17 world is coming.
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SPORTS CAPSULE
Youth Panamanian Baseball
This youth tournament has been very good from the start of the championship. With a seasoned team wanting to surprise and Veraguas, Cocle and Colon, among others. Since the four finalist teams such as Panama Metro, Los Santos, Herrera and Chiriqui Occidente, weren’t surprising because their performances. Of these four team reached the finals teams Los Santos Panama Metro and giving a good show in the first 5 games this end, most games don’t act to heart. The fans of both teams are felt filling the Rod Carew Stadium, putting a good atmosphere within the party. We’ll see who will be the champion of this category in the 2015 tournament. L&E
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CULTURAL CAPSULE
Mariela de Sanjur mariela.sanjur@rbc.com.pa
ACTIVITIES FOR MARCH Theater:
• Speak now or forever Teatro La Quadra 4 to March 29 • Neither death separates us ABA Theatre March 14 to April 2 • Little Orphan Annie ABA Theatre March 8 to April 19 • Three: Teatro La Station from February 26 Poetry Recital - Women- Panama March 20, 6: 30 pm in the Art Gallery Manuel E. Amador by the Faculty of Law, University of Panama
Festivals:
• 9th Festival of Diablos and Congos of Portobelo Saturday March 14th. • Beer Fest Panama 2015: 13 to 14 March at the Figali Parking Lot.
Concerts:
• Damian Jr Gong Marley in Concert on March 24 at Plaza Figali. • Classic Rock Panama Meeting March 14 at Latitude 47.
Fairs:
• EXPOCOMER 2015, 11 to 14 March at ATLAPA Convention Center. • Sona South Fair, Tigre de San Lorenzo 6 to 8 March. • Feria de Santa Fé de Darien 11 to 15 March. • International Fair of David, Chiriquí from 12 to 22 March. • Coast & Mountains Fair, Colon 13 to 16 March.
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• Fair Chitr-Calobre, Veraguas 13 to 15 March. • Feria de San José de Tole, Chiriqui 18 to 22 March • Tonosí Valley Fair, Los Santos 26 to 29 March • Fair Tortí, Chepo 26 to 30 March • Orchid Expo in Boquete, Chiriqui March 27 to April 5 • The 1st Spanish Crafts Fair from 15 to 22 March at the Panama Hotel and Vasco Nunez de Balboa Convention Center. • Brides in Wedding Expo from 14 to 15 March in the Great Hall of the Hotel Riu Plaza Panama Panama.
Special festivities:
• Good Deeds Day: March 15. • International Women’s Day: March 8. • Full Moon Drums March 7
Religious festivities: • San Jose: March 19. • Palm Sunday: March 29.
Contests:
2015 Rana Dorada Award: To recognize good practices in environmental conservation and sustainable development held in Panama by Non Governmental Organizations (NGOs), Odebrecht announced the opening of registration for the 2015 Rana Dorada Award, which will be receiving up April 15.
CULTURAL CAPSULE Exposiciones:
• Exhibition to celebrate the 39 anniversary of the Photographic Club of Panama: from 2 to 6 March in Manuel E. Amador Guerrero gallery of the University of Panama. • George Grosz: The Big NO. February 25 to April 26, 2015. The Museum of Contemporary Art, MAC Panama, begins its exhibition program in 2015 with the exhibition of one of the great German artists of the twentieth century: George Grosz.
Talks and workshops:
• The Creative Workshops return to Mac Panama: We are in registration for Saturday workshops to begin on March 7, course for children from 8 to 12 years. • Tales of the Sun and Moon: Tales of the Nation Guna in Commemoration of the 90th anniversary of the Dule Revolution. February 28 at 3:00 pm in the Children’s Room of the Library of Omar Park. • Tangled in Networks: Connections and disconnections of the new era: Manual for Parents and Teachers, March 25 at 6:30 pm in the MAI Center. • Creativity Photographic Laboratory for children (7-12 years): Fundarte from 4 to March 28 Address: Casa Fundarte (Calle 78 east), Panama, San Francisco, Phone: 226-6866. L&E
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