This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 03 PANAMA 001613 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN 
SOUTHCOM ALSO FOR POLAD 
 
E.O. 12958: DECL: 08/02/2015 
TAGS: PREL PGOV EFIN PM POL CHIEF
SUBJECT: PANAMANIAN COMPTROLLER GENERAL DANI KUZNIECKY 
DISENCHANTED WITH TORRIJOS, MULLS CALLING IT QUITS 
 
REF: PANAMA 1553 
 
Classified By: CDA JDANILOWICZ FOR REASONS 1.4 (B) AND (D). 
 
SUMMARY 
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¶1.  (C) Disturbed by an administration he sees as rudderless 
and by President Torrijos's lack of attention to his reform 
agenda, especially anti-corruption, Comptroller Dani 
Kuzniecky is considering throwing in the towel.  Kuzniecky's 
defection would deprive Torrijos of one of his most able 
reform activists, although his loyalty to Torrijos and his 
ambitious plans for the Contraloria probably make a sudden 
departure unlikely.  Nonetheless, Kuzniecky's frustration was 
plain in recent talks with Ambassador Watt, POL Counselor, 
and POL Specialist.  Kuzniecky wants Torrijos to devote much 
more attention to the Contraloria to help Kuzniecky stem the 
theft of public funds, which he says continues unabated at 
all levels of government.  In private, Kuzniecky often has 
accused Torrijos of failing to lead and having no plan for 
governing.  While Kuzniecky sharply criticized Torrijos and 
several ministers, he praised others, including Government 
and Justice Minister Hector Aleman and Foreign Minister 
Samuel Lewis.  Kuzniecky's awkward position illustrates the 
GOP's contradiction, between the technocrats who nominally 
are in power and the Democratic Revolutionary Party's 
political realties, which the president is doing little to 
change.  End Summary. 
 
An Aloof President 
------------------ 
¶2.  (C) In a July 22 conversation with POL Specialist, an 
obviously depressed Kuzniecky made no bones about his 
disappointment with Torrijos and with the GOP in general. 
Kuzniecky said that Torrijos pays scant attention to him.  As 
he briefs the president on his plans, Kuzniecky complained, 
Torrijos stares at the ceiling, takes phone calls, gives me 
the thumbs up and says "good job, good plan, let's discuss 
this next week," but the time for that discussion never 
comes.  Kuzniecky pointed out that the Comptroller General 
must approve every expenditure in the country.  A close 
relationship with the president is vital for the Comptroller 
to do his job, he believes, yet he and Torrijos hadn't spoken 
in three weeks.  "How can that be?" he asked sarcastically. 
 
"So That's It?" 
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¶3.  (C) Kuzniecky particularly would like to get rid of his 
Deputy Comptroller General, PRD stalwart Luis Amado, whom he 
suspects of demanding "commissions."  Amado can be removed 
only with Torrijos's OK.  Contraloria officials have gotten 
used to demanding commissions or kickbacks from vendors in 
return for making legitimate payments, Kuzniecky explained. 
Kuzniecky can prevent Amado from stealing if he watches him 
but, he added, he cannot watch him all the time.  For 
example, Kuzniecky recently signed a $9 million check for the 
Nikos Cafe restaurant chain, which has a contract to provide 
meals for Panamanian police officers.  A few days later, 
Kuzniecky got a phone call from Nikos' owner, saying "So 
that's it?  You mean, you don't want a commission?" 
 
We Need To Put People In Jail 
----------------------------- 
¶4.  (C) The people's level of frustration level with 
corruption and impunity is very high, Kuzniecky told 
Ambassador Watt in late July.  That frustration is 
exacerbated due to recent problematic Supreme Court rulings 
(see Reftel) and scandals involving legislators accused of 
selling their right to import tax-free vehicles to car 
dealerships.  People in Panama cheat everywhere, Kuzniecky 
said, from the Court's "ridiculous rulings" to the lowest 
level of the government.  Scratch and you'll find something," 
he said.  "We need to send people to jail soon." 
¶5.  (C) Kuzniecky is reluctant to leave Torrijos in the 
middle of the CSS reform crisis but vows that unless he 
starts paying more attention, he won't put up with this. 
Kuzniecky planted a story in a local daily that he might be 
quitting soon, he confided to POL Specialist.  When he ran 
into Minister of the Presidency Ubaldino Real on July 22, he 
asked Real "have you guys found a new Comptroller General?" 
Real allegedly laughed and said "I am sure that you are 
kidding."  "I'm not kidding," Kuzniecky said he replied. 
 
It's Not Happening 
------------------ 
¶6.  (C) In separate conversations with POL Counselor, 
Kuzniecky said that the GOP was doing a lousy job 
communicating its "story" and its priorities.  The government 
constantly fails to get ahead of the news with its version of 
events.  The government has no real plan, Kuzniecky said, no 
vision of how it wants to accomplish its objectives. 
Torrijos could help himself if he gave more speeches and 
began to outline his vision for the country, Kuzniecky said, 
but he has not done so, perhaps because he has no plan. 
Kuzniecky often reminds Torrijos that he has a unique 
opportunity, perhaps not to be repeated, to accomplish great 
things in Panama and to really put the country on a new 
footing.  The trouble is, Kuzniecky implied, it's just not 
happening. 
 
Comments on the Cabinet 
----------------------- 
¶7.  (C) Kuzniecky had the following to say about the cabinet: 
 
--Government and Justice Minister Hector Aleman, Minister of 
Housing Balbina Herrera, and Minister of Public Works Carlos 
Vallarino -- They are the ones who are really working.  Not 
only are they doing their "political" work, but they are 
actually executing plans and programs. 
 
--Social Development (formerly MINJUMFA) Minister Leonor 
Calderon -- She is feeling down and has been very quiet and 
uninterested lately.  She feels that Torrijos ignores her 
portfolio and keeps referring her to the First Lady's office. 
 
--Tourism Minister Ruben Blades -- He has done nothing ("The 
Moscoso government did much better in tourism that we are 
doing") and he tries the ministers' patience by mentioning 
his artistic career at every Cabinet meeting.  The ministers 
criticize him behind his back for sloppy presentations.  His 
ego was badly affected with last week's poll, which doesn't 
reflect good on him and he has been rude to some recently." 
 
--Vice President/Foreign Minister Samuel Lewis Navarro -- 
Lewis doesn't like him and Kuzniecky is not fond of Lewis but 
he added "I have to admit that he does a good job. He would 
be a better president than Torrijos.  No doubt." 
 
--Trade Minister Alejandro Ferrer -- "a smart guy."  Once he 
was approachable, Kuzniecky said, but his ego is growing. 
Kuzniecky keeps sending documents back to Ferrer's office for 
corrections before he approves them but Ferrer doesn't like 
it, he said. 
 
--Agriculture Minister Laurentino Cortizo -- "A total fake." 
 
--Presidency Minister Ubaldino Real -- "Another true 
disappointment," Kuzniecky said, adding that he and Uba are 
friends and spent much time together during the campaign. 
"He is reviewing everything and doing nothing."  Given his 
close relationship with Torrijos, Uba "should be the guy with 
the whip" making sure that everyone does what they're 
supposed to do, as he knows Martin would support him, but he 
doesn't do it.  "Uba knows that things are not going well and 
he is not doing anything to help." 
 
--Banco Nacional de Panama General Manager Juan De Dianous -- 
Kuzniecky praised De Dianous, pointing out that so far in 
2005 the bank already has made $70-80 million in profits. 
 
Most Unpopular Award 
-------------------- 
¶8.  (C) Kuzniecky said that he and Finance Minister Ricaurte 
Vasquez, another straight-shooter, are the least liked people 
in the GOP.  Kuzniecky said PRD majority leader Freddi Torres 
had asked him, "Are you Panama's new Mother Theresa?" for 
Kuzniecky's insistence on transparency. 
 
Comment 
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¶9.  (C) Unlike most of the cabinet, which took office on 
September 1, 2004, Kuzniecky has been at his job as 
Comptroller General barely seven months.  A principal 
technocratic appointee and one of Torrijos's childhood school 
chums, Kuzniecky does not need his government job and could 
return to his law practice at any time.  But we doubt he will 
do so, at least for now, despite his dissatisfaction. 
Kuzniecky is an idealist and extremely able; government 
service intrigues him precisely because it allows him to 
"make a difference."  His discomfort stems from the clash 
between his idealism and the president's failure thus far to 
change Panama's kleptocratic political culture or to show 
much interest in Kuzniecky's work.  Kuzniecky's degree of 
dissatisfaction at his job is an indicator of the extent to 
which Torrijos is succeeding in bringing change to Panama. 
Given present trends, we would not be surprised if Kuzniecky 
does not finish out his five-year term. 
 
DANILOWICZ