VZCZCXYZ0000
PP RUEHWEB

DE RUEHZP #0824/01 1182245
ZNR UUUUU ZZH
P 282245Z APR 06
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC PRIORITY 7959
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 2271
RUEHQT/AMEMBASSY QUITO 0867
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/JOINT STAFF WASHINGTON DC
RUEKJCS/OSD WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL//J5/J2/POLAD

UNCLAS PANAMA 000824 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
WHA/CEN GREG SCHIFFER 
SOUTHCOM FOR POLAD 
 
E.O. 12958: N/A 
TAGS: PGOV PINR PM PREL
SUBJECT: PANAMA: PRESIDENT TORRIJOS SHAKES UP CABINET 
 
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 SUMMARY 
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¶1.  (SBU)  President Martin Torrijos announced three major 
changes in his cabinet during a nationwide radio and TV 
address this afternoon.  The much anticipated changes come 
twenty months into the Torrijos presidency and were the 
subject of widespread rumors for several weeks.  In the 
Ministry of Government and Justice (MOGJ), Hector Aleman was 
forced to resign and was replaced by his deputy, Olga 
Golcher.  Aleman will return to his seat in the National 
Assembly and oversee the Government of Panama's (GOP) 
proposed Panama Canal expansion project.  Benjamin Colamarco 
replaced Carlos Vallarino in the Ministry of Public Works 
(MOP).  Colamarco, the commander of the goon squad "Dignity 
Battalions" under Manuel Noriega, assumes a politically 
important post that awards valuable contracts for public 
buildings, road construction and other projects in Panama. 
The final change by the GOP will send Vallarino to the 
Ministry of Economy and Finance (MEF), replacing Ricaurte 
Vasquez.  Vasquez who previously served as deputy 
Administrator of the Panama Canal Authority (ACP) and more 
recently as ACP Chairman is expected to be involved in the 
Canal expansion.  Torrijos's decision to reshuffle his 
cabinet results from internal struggles within the ruling PRD 
party.  End summary. 
 
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Olga Golcher Moves to MOGJ's Top Position 
----------------------------------------- 
¶2.  (SBU)  Golcher, in her late forties, as the new head of 
MOGJ, will have her hands filled trying to reform and 
modernize Panama's dysfunctional public forces (police, 
maritime and air service), migration directorate, harsh 
prison conditions, and problems with trafficking in persons. 
Despite Golcher's nationalistic tendencies, she has 
maintained good working relations with various members of the 
Embassy.  Golcher is an experienced attorney but has never 
held a high political office.  She will make decisions 
regarding changes in MOGJ with the advice and consent of 
National Security Advisor (Consejo) Leonel Solis.  She is 
married to Ricardo Manning, a U.S.-Panamanian dual national 
and Vietnam era veteran who works at the ACP Security Office. 
 
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PRD "Young Turks" vs. "The Old Guard" 
------------------------------------- 
¶3.  (SBU)  Aleman, 48, is the Second Deputy Secretary General 
of the PRD, a former student activist and union leader.  He 
is a member of the leftist "tendencia" group within the PRD 
while Torrijos is the leader of the young reformist movement 
within the party.  Aleman and Torrijos have been at odds for 
some time and the cabinet shake up is a sign of a power 
struggle within the PRD.  An Embassy source said Aleman 
wanted to remain at MOGJ while overseeing the Canal 
expansion.  Torrijos and Aleman also reportedly wanted to 
purchase the same track of land on the Atlantic coast, a 
battle which Torrijos ultimately won.  Aleman did not get 
along with Leonel Solis and had bristled at his appointment 
to this position last August. 
 
---------------------------------------- 
Vallarino Moves from Public Works to MEF 
---------------------------------------- 
¶4.  (SBU)  Carlos Vallarino, 53, an active PRD member, 
managed Torrijos's unsuccessful 1999 presidential campaign. 
A CPA, Vallarino replaces Vasquez at MEF, a move which will 
allow Vasquez to work full-time on Canal expansion issues. 
The Canal expansion is the number one project for the GOP but 
will require a national referendum.  Vallarino is considered 
a moderate in the PRD and has a good reputation as a 
successful business executive and is a supporter of trade 
liberalization.  He previously served as Panama's first 
Banking Superintendent and as Vice Minister for Planning and 
Economic Policy at the MEF during the Perez Balladares 
administration. 
 
--------------------------------------------- ---- 
Former Noriega Ally to Head Public Works Ministry 
--------------------------------------------- ---- 
¶5.  (SBU)  Benjamin Colamarco, 48, replaces Vallarino as 
Minister of Public Works (MOP).  Because of his role as head 
of the Panamanian Defense Forces "Dignity Battalions" under 
Noriega, Colamarco spent three years and ten months in 
prison.  Colamarco, an active member of the PRD's Old Guard 
 
and its leftist "Tendencia" wing, is known for his strong 
anti-American sentiments.  He has visited Cuba on several 
occasions.  During the 2001 Iberoamerican Summit in Panama, 
Colamarco actively participated in a University of Panama 
event honoring Fidel Castro.  Since September 2004, he was 
director of the Public Facility Division in MEF and used his 
position to promote a bill prohibiting island ownership. 
This bill was widely seen as a move against American property 
owners in Panama.  He also made scathing front page comments 
against President George W. Bush, prior to his November 2005 
visit to Panama. 
 
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Golcher Faces Daunting Task 
--------------------------- 
¶6.  (SBU)  Comment:  Embassy views Olga Golcher as a 
professional who has worked well with the U.S. as the MOGJ 
deputy.  Golcher will have her hands filled trying to reform 
and modernize Panama's dysfunctional public forces (police, 
maritime and air service), migration directorate, harsh 
prison conditions, and problems with trafficking in persons. 
We do not expect Golcher will try to control the Panamanian 
National Police (PNP), which is under the strict control of 
Rolando Mirones.  Mirones reports directly to President 
Torrijos, bypassing the MOGJ.  The bypassing of the MOGJ by 
the PNP director was a consistent sore point between Aleman 
and Torrijos.  The crisis between the Old and New Guard in 
the PRD has spilled over into the public eye, despite 
controlled media denying its existence.  The reemergence of 
the Old Guard is troubling - for Panama and the USG.  The 
rebellion within the party leadership has weakened Torrijos' 
position as PRD General Secretary.  Hector Aleman is a 
"wounded political animal" who may look to extract vengeance 
against Torrijos from the National Assembly and within the 
PRD.  Meanwhile, Colamarco's move to Public Works - where 
infrastructure funds are often a temptation - bears close 
watching.  End comment. 
EATON