VZCZCXYZ0000
RR RUEHWEB

DE RUEHZP #0563/01 1031943
ZNY CCCCC ZZH
R 131943Z APR 07
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 0152
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RHMFISS/COMDT COGARD WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RHEFDIA/DIA WASHDC
RUMIAAA/HQ USSOUTHCOM MIAMI FL
RHMFISS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHDC
RUENAAA/SECNAV WASHDC
RHEHAAA/WHITE HOUSE WASHDC

C O N F I D E N T I A L PANAMA 000563 
 
SIPDIS 
 
SIPDIS 
 
FOR STATE WHA/CEN TELLO 
 
E.O. 12958: DECL: 04/01/2015 
TAGS: ECON PGOV EWWT
SUBJECT: TORRIJOS TO MOVE COMPTROLLER KUZNIECKY TO CANAL 
AFFAIRS 
 
 
Classified By: Ambassador William Eaton for reasons 1.4(b) and (d). 
 
¶1. (U) SUMMARY: On April 12, 2007, President Martin Torrijos 
announced that Dani Ariel Kuzniecky would be the new Minister 
for Canal Affairs and President of the Panama Canal 
Authority's (ACP) Board of Directors replacing Ricaurte 
"Catin" Vasquez.  Kuzniecky is currently Panama's 
highly-regarded Comptroller General.  For numerous reasons, 
Vasquez had been seeking to leave government for over a year. 
 The consensus among Panamanians with whom Post has discussed 
the matter is that move was not a surprise, Kuzniecky has 
done a good job as Comptroller General, and while his 
re-assignment to the ACP is beneficial for the ACP, it may 
portend problems for the Comptroller General's offices 
depending on whom is selected to replace him.  END COMMENT. 
 
 
¶2. (U) On April 12, 2007, Torrijos announced that Kuzniecky 
would be the new Minister for Canal Affairs replacing 
Vasquez.  Subject to the National Assembly's (likely) 
ratification, Kuzniecky would also be President of the ACP's 
Board of Directors.  Kuzniecky is currently Panama's 
highly-regarded Comptroller General.  Kuzniecky will present 
his resignation to the Panamanian Assembly on April 12, but 
will remain as Comptroller General until a successor is 
chosen.  Although Minister of Economy and Finance Carlos 
Vallarino is rumored to succeed Kuzniecky as Comptroller 
General, Torrijos is legally prohibited from publicly making 
such an announcement.  Under Panamanian law, the National 
Assembly selects the Comptroller General, though in practice 
it is the President. 
 
¶3. (C) Publicly, Torrijos said Vasquez had expressed a desire 
to return to the private sector for some time.  A former 
Governor of Panama told EmbOff that Vasquez had been looking 
to leave government for over a year.  According to this 
source, Vasquez has complained that he did not have Torrijos' 
support, was disliked by the legislators and was being used 
to deliver tough decisions.  The source said Vasquez did not 
actively seek out his removal but waited for Torrijos to act. 
 Vasquez believed that his unpopularity would force Torrijos 
to remove him.  Vasquez may now seek to serve as a consultant 
to groups seeking to do business with the ACP.  Vasquez has 
yet to make an announcement as to his future plans. 
 
¶4. (C) Prior to the announcement, Kuzniecky told EmbOff that 
he was not seeking the Canal position.  He said he was upset 
at hearing rumors of the re-assignment before anyone from 
Torrijos's office had contacted him.  Kuzniecky said he sent 
a message to Torrijos saying that he, if requested by 
Torrijos, he would accept a new position but that he "would 
be the same Kuzniecky and he (Torrijos) should carefully 
consider where he would ask me to serve."  Kuzniecky said he 
made it clear he would attack corruption in whatever agency 
he served. 
 
¶5. (C) Angelica Maytin, Executive Director of the Foundation 
for the Development of Civil Liberties (Panama's chapter of 
Transparency International) told PolOff that Kuzniecky's 
resignation was not a surprise.  According to Maytin, it was 
common knowledge in the transparency community that Kuzniecky 
wanted to leave, but his reasons were unknown.  "It is a 
shame that Kuzniecky is leaving.  He did a good job," added 
Maytin.  However, Maytin did not speculate on the 
ramifications of Kuzniecky's departure on the future of the 
GOP's anti-corruption campaign.  "It all depends on who they 
choose to be the next Comptroller," said Maytin.  Similar 
comments have been received from other political figures in 
Panama. 
 
¶6. (SBU) COMMENT: Kuzniecky has long wanted the leave the 
Comptroller General post.  Given his solid anti-corruption 
credentials, this change could be beneficial for the ACP. 
However, depending who replaces him as Comptroller General, 
this move could portend weaker GOP resolve to combat 
corruption in the central government. 
 
¶7. (U) Bio Note: Kuzniecky has served as Comptroller General 
since November 22, 2004.  Previously, he was a lawyer at 
Kuzniecky & Co.  Kuzniecky lead Torrijos' transition team 
 
from May to September 2004.  Kuzniecky's only prior political 
experience was during the 1999 presidential campaign where he 
served as vice-president of the "Pro-Martin (Torrijos) 
Independents" with current Panamanian Ambassador to the US 
Ferederico Humbert Arias.  Kuzniecky holds a law degree from 
Universidad Santa Maria La Antigua (1984), a Masters in 
Jurisprudence from New York University's International Law 
Institute (1986) and has done postgraduate coursework at 
Harvard University.  He is married with two daughters and 
speaks fluent English. 
EATON