The Canal’s contribution

Since 2000 - when Panama took over the administration of the Canal - until 2008, the Panama Canal Authority (ACP) has made direct contributions to the State for $3,934 million. This amount is 75% of the cost of the expansion program which amounts to $5,250 million. These contributions come from the excess profits of each fiscal year, payments for services rendered by the State (such as garbage collection), and one U.S. dollar per net tonne passing through. Additional to the direct contributions, the ACP also pays income taxes, social security quotas and educational insurance for its workers, which between 2004 to 2008 totaled $1,102 million. The sum of all contributions to the State from the Canal over eight years totals $5,036 million, according to the ACP.

Illegal car sales

The daily “La Estrella de Panama” reported that at least two of the seven luxury cars driven in Panama by David Murcia Guzman, who is now in a Colombian jail on money laundering charges were purchased with tax exemptions of government officials. These tax exemptions were given to the deputies, members of the Parlacen (Central American Parliament) and their alternates who are only supposed to use them personally.

Controversy over consuls

The role of the consuls in the country’s merchant marine registry, with 60 consulates around the world, has become a controversial issue that continues to arouse suspicion because of the ambiguous role that they exercise in a scenario where the roles seem diplomatic, business and personal in the flagging of vessels. This was the comment of the daily “La Estrella de Panama” which said that according to statistics of the Panama Maritime Authority (AMP), the registration of ships brought in $83.8 million in 2008 representing 70.4% of the total income of the AMP, which last year was $119 million, while in 2007 revenues were $71.7 million, which is 70% of the total collected by the AMP and in 2007 was $102.9 million. These figures show an increase in revenue of $12.1 million or 14.4%. In accordance with Panamanian law, the consuls, who are administratively dependent on the Chancellor of the Republic, are responsible for promoting and conducting the registration of vessels under the Panamanian flag. For this work, they receive an additional commission on their salary of not less than 30% and not more than 70% of the flagging fees.

Healthy banks’ expected behaviour

Although the banking system maintains a healthy level in its loan portfolio and has begun to make new loans, the rate of growth is expected to be lower this year. The daily “Panama America” revealed that in February this year, new lending was lower by 2.3%, with an outlay of $25.7 million less compared to the same month of 2008. A contraction was registered in agricultural, personal, mortgage and trade loans. “Since 2008 most banks had warned that credit would increase at a much lower rate this year. The figures so far this year show this”, said Otto O. Wolfschoon, first vice-chairman of the Panama Banking Association and vice-president of Global Bank. Wolfschoon noted that “this is actually the expected behavior due to the situation of the global economy and against the very strong credit growth in recent years.”

New Chamber president

The president-elect of the Chamber of Commerce, Industries and Agriculture in Panama, Adolfo Linares assumed his new post this week. Among the topics to be addressed during his term are public transport and basic household supplies, transparency and anticorruption, public safety, free trade, education, training, and public health.

Illegal fish netting

The Authority of Aquatic Resources of Panama (ARAP) will open an investigation in Chiriqui of companies active in the sale of fish to determine whether they are using illegal nets. Jose Martinez, administrator of the ARAP in Chiriquí, said the measure arises from the seizure of several gill nets of two, three and one quarter inch, which are forbidden.

Roque Perez murder suspect to trial

Ciro Pacheco Asprilla, the only suspect for the murder of lawyer Roque Pérez, who was killed by two shots while sitting outside the Boulevard Balboa Restaurant in 2001, will face justice on April 20 in the trial scheduled for the Second High Court. An assassin killed Perez in front of restaurant patrons on July 19 of that year. The trial will be presided over by the Magistrate of the Second Court of Justice, Raul Olmos. Present at the restaurant at the time of the murder was the former head of the Institutional Protection Service (SPI), Alejandro Garuz and former Attorney General of the Nation, Efrain Villarreal, who were talking with Perez when he was killed.

Former maritime chief faces money laundering charges

The hearing of the substantive offense of money laundering against the former director of the National Maritime Service (SMN), Ricardo Traad Porras, will be held on Wednesday April 29 in the Fourth Circuit Criminal Court. The judge Silverio Rodriguez called to trial Porras and another twelve people involved. According to the First Drug Attorney, Traad could not substantiate $6 million. The accusation also alleges he received $100,000 for 10 tons of scrap from the vessel “Perseus V.”

Cleaning the bay

The company that will build the sewage treatment plant for the sanitation project to clean up Panama Bay will be announced in mid-May, reported the Director of the Institute o National Acueducts and Sewage (IDAAN), Juan Antonio Ducret The French companies, Veolia and Decremont - the latter associated with the construction company Norberto Odebrecht - are the two companies that are vying to win the project that will cost about $200 million.

2008 construction: 30% increase

The daily “La Extrella de Panama” reported that there was nearly a 30% increase in the construction industry in Panama last year, according to official data of the Comptroller’s Office. The increase occurred despite the negative predictions caused by the global financial crisis. The report details that the industry grew steadily due to implementation of public and private investment in residential and non-residential projects.

To supervise island construction

The Panamanian Society of Engineers and Architects (SPIA) is to oversee the construction of two islands in Panama Bay by the Mexican company ICA Panama to ensure that it complies with Panamanian laws. Ernesto De Leon, president of the guild, said he hoped that the professionals who work there are registered in Panama by the appropriate Technical Board of Engineering and Architecture. He promised that this week he would coordinate a visit to the building site to see the work being done by the company.

Mobile phones

Until last month, the four mobile phone companies operating in Panama had allocated 6.6 million numbers, twice the number of people living in Panama, according to statistics from the National Authority of Public Services (ASEP). Cable & Wireless (C & W) and Telefónica Móviles (Movistar) have allocated 2.7 million numbers each, while 900,000 are those of Digicel. Claro Panama, which recently began operations, has 300,000.

North Corridor extension ready

The first stage of Phase II of the North Corridor expressway will be opened in coming days, sources of the PYCSA Panama company, which is building the road, reported. They stressed that the 8-kilometer stretch that will be available to users, connects areas such as Villa Lucre, El Crisol, Brisas del Golf and Verro Viento with the center of the capital.

Noriega’s lawyers fight on

The attorneys of Manuel Antonio Noriega in Panama said after learning that a federal court in Atlanta reaffirmed its intention to extradite him to France to face money laundering charges, that “this still does not stop a legal battle”. Julio Berrío, one of the former dictator’s legal team, said that Noriega “is calm and maintains his firm decision to return to the country.”

Dual nationality issues

The dual nationality (Panama and US) of the candidate for mayor of Panama City, Bosco Vallarino, and the fact that he could have his rights as a Panamanian citizen suspended, has generated a heated debate that continues. Now the allegations suggest that we should analyze how many of those registered to vote might be in the same situation. The Electoral Tribunal says it cannot investigate on its own.

National News.

Ordered to withdraw state advertising The Electoral Tribunal (TE) ordered 11 State institutions to withdraw advertising spots because they violated the statutory provision that prohibits increasing advertising budgets in the last six months of government. The list is headed by the Presidency of the Republic, the MOP, MIDES, Tourism Authority, Public Register, ASEP, Customs, among others. The measure seeks to ensure the impartiality of the electoral process and prevent the use of public money in politics.

Declining car sales

For the sixth consecutive month a decline was recorded in car sales, according to figures from the Automobile Dealers’ Association of Panama (ADAP). The decline began in October last year with a decrease of 4.8%. This percentage dropped further by 28.4% in November, a level that was repeated in the first month of 2009. The first quarter ended with a low of 20%. It is a much more pronounced downturn that had been expected.

Pensioners’ pay rise

While retirees and pensioners marched towards the National Assembly deputies adopted in third debate the project giving them a pay increase of $25.00 for those earning less than $700 per month.