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S E C R E T PANAMA 001143 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
E.O. 12958: DECL: 07/06/2017 
TAGS: PGOV PREL PINR KCRM SMIG SOCI PM
SUBJECT: PANAMA POST:  EDITION IV 
 
REF: PANAMA 1102 
 
Classified By: POLCOUNS Brian R. Naranjo.  Reasons:  1.4(b), (c), and ( 
d) 
 
------- 
Summary 
------- 
 
¶1.  (C)  Welcome to the Fourth of July edition of the Panama 
Post!  Our staff members were out in force trolling crowd at 
the Ambassador's residence for this year's Independence Day 
reception to take Panama's political pulse.  This week, 
Panamanian President Torrijos flexed his muscle:  powering 
through his hand-picked candidate to be the next Ombudsman 
(an ostensibly "independent" government authority), reining 
in a proxy battle within the PRD for the party's presidential 
nomination, and putting his cabinet on notice that they 
needed to perform better.  The icing on the cake for Torrijos 
was finding an artful solution to ensure that Panama's flag 
flies at the PanAm games in Rio.  Amid this activity, the 
failing marks given Torrijos' Anti-Corruption Secretariat by 
a recent poll went nearly unnoticed.  In the opposition, 
Alberto Vallarino floated that he was looking for a party 
while former President Guillermo Endara's Moral Vanguard of 
the Nation (VMP) party checked yet another box on the way to 
its registration. 
 
¶2.  (U) The following are this edition's stories: 
 
-- Torrijos takes the Cabinet on the road; 
-- New Public Defender (Ombudsman) elected and promptly acts 
to defend self; 
-- Endara takes a dive as the Moral Vanguard of the Nation 
(VMP) takes step forward; 
-- Torrijos to wave Panamanian Flag at PanAm Games in Rio; 
-- Soviet-style, Torrijos manipulates election for Panama 
Province Municipal Council Presidency; 
-- Electoral Tribunal (TE) expands pool of voters, opposition 
wary; 
-- Election season must be around the corner -- Vallarino 
mulls which party to join; and 
-- Torrijos' Anti-Corruption Secretariat gets failing marks 
in poll. 
 
End summary. 
 
-------- ------------------------- 
Torrijos Takes Cabinet on the Road 
-------------- ------------------- 
 
¶3.  (SBU) Panamanian President Martin Torrijos, fed up at 
taking criticism for his government's performance, threatened 
his ministers that he would take the cabinet on the road so 
they could answer for their own performance, newly appointed 
Minister for Canal Affairs Dani Kuzniecky told the Panama 
Post on June 28.  Indeed, the Panama Post learned July 3 that 
Torrijos would chair a "regional workshop" in Chiriqui 
Province on July 6, attendance at which was compulsory for 
cabinet members.  First VP and FM Samuel Lewis cringed July 4 
when asked if it was true that the President would be taking 
the cabinet on the road more often in the coming weeks. 
 
¶4.  (C) Comment:  Amidst rioting high school students, drawn 
out investigations into the dietheylene glycol poisoning case 
and the October bus fire, and the arrest of the commander of 
the National Maritime Service (SMN), Torrijos has felt 
besieged.  Minister of Education Miguel Angel Canizales and 
Minister of Health Camilo Alleyne are in a race to the bottom 
in polls regarding these ministers' performance, neither one 
breaking into double digits.  In an effort to pressure his 
ministers to perform and to spread the blame, Torrijos is 
putting the band together and hitting the road, something the 
ministers hate as it takes them away from managing their 
portfolios. 
 
------------------------------- --------------- 
Defender of the Public Elected, Goes on Defense 
------------------------------- --------------- 
 
¶5.  (SBU) Elected June 29 by the National Assembly, Panama's 
new Ombudsman (Defensor del Pueblo, or Public Defender) 
Ricardo Vargas assumed his office on July 2.  Vargas was 
immediately put on the defensive defending himself against 
charges of human rights abuses, extortion, bribery, abuse of 
authority, and other wrong-doings related to his previous 
position as Director of Immigration.  These charges stem from 
a complaint filed with the Anti-Corruption Prosecutor's 
office on behalf of Xinhao Pan, a Chinese national detained 
on Vargas' orders for six months and who was subsequently 
deported.  On the day of his election, Panama's morning 
television interview personality Lucy Molinar grilled Vargas 
regarding alleged irregularities during his tenure as 
Director of Immigration and accusations that he abused his 
wife.  (Note:  Former Ombudsman Liborio Garcia, who bombards 
the Panama Post with missives asserting his innocence, was 
removed by the National Assembly for allegedly beating his 
wife.)  The Panama Post heard Vargas profess his desire as 
Panama's ombudsman to fight against "intra-family violence" 
as well as for the rights of the handicapped, individuals 
with HIV/AIDS, and people affected by environmental 
degradation.  Responding to accusations that he improperly 
issued visas, Vargas has stated that the Council for 
Protection Safety and National Defense (CSPDN) had to 
greenlight all "restricted" visas to be issued to nationals 
from "criteria" countries. 
 
¶6.  (S/NF) Though essentially a sinecure position without the 
power to forward cases to prosecutors or submit cases to the 
courts, the Ombudsman position is one of the few positions 
that the National Assembly can fill on its own.  (The other 
such positions are the Comptroller General and one of the 
three magistrates on the Electoral Tribunal.)  As with the 
recent move of Dani Kuzniecky from Comptroller General to 
Minister of Canal Affairs, the effort to dub Vargas as the 
next Ombudsman once again erased whatever separation might 
have existed between Panama's legislative and executive 
branches and is another example of governing Revolutionary 
Democratic Party (PRD) acting by fiat.  Indeed, 1st VP and FM 
Samuel Lewis called then-Charge on June 28 to indicate that 
the cabinet was considering Vargas' nomination and to ask if 
the U.S. knew of any reasons why he might not be an 
appropriate candidate.  Charge indicated that the Embassy was 
privy to the same general concerns about possible 
irregularities in immigration, including possible nexuses to 
trafficking-in-persons.  The Panama Post hopes that Vargas 
can live up to his assertion upon assuming office, "My 
actions will be founded on my conscience.  I will make 
well-founded criticisms when appropriate and will strive to 
meet the highest ethical standards that have characterized 
all of my acts in my public and private life."  Post has 
reason to believe that Vargas was less than religious in 
securing CSPDN authorization to issue "restricted" visa to 
citizens from "criteria" countries.  Vargas' runner-up, 
independent political analyst Alfredo Castillero, Panamenista 
party President Juan Carlos Varela, and political commentator 
Miguel Angel Bernal asserted July 4 that the manner in which 
the PRD forced through its candidate would diminish the 
credibility of this bully pulpit. 
 
------------------ ---------------------- 
Endara Takes Dive, VMP Takes Step Forward 
------------------ ---------------------- 
 
¶7.  (U) Former President Guillermo Endara collapsed July 1 
during Moral Vanguard of the Nation (VMP) party's internal 
election of representatives to this newly established party's 
convention.  These internal elections are required by the 
Electoral Tribunal (TE), and VMP's satisfaction of this 
requirement puts it one step closer to formal recognition as 
a new political party.  Endara's close advisor, Menalco 
Solis, confirmed on July 4 for the Panama Post that Endara 
would not participate in an inter-party primary.  Doctors 
said Endara, who suffers from diabetes and other health 
problems, was dehydrated, particularly due to intense heat. 
On July 3, the 71-year old ex-president told the press that 
he "enjoyed good health," and asserted that he had lost at 
least 120 pounds. 
 
¶8.  (C) While it strongly suspects Endara's assertions that 
he only weighs 180 pounds, the Panama Post does note that 
Endara has lost a significant amount of weight in recent 
years.  That said, however, this collapse came at a difficult 
time for Endara as he is launching his new party and will 
remind voters of concerns about Endara's health.  Downplaying 
Endara's collapse, Solis told POLCOUNS July 4 that it was 
very difficult to motivate the rank and file to participate 
in these arcane TE-required activities normally only the true 
 
political junkies participated but at the end of the day VMP 
checked the box that it had done the necessary to organize 
its convention.  Echoing these sentiments, Patriotic Union 
(UP) luminary Delia Cardenas and Democratic Change (CD) party 
leader Ricardo Quijano separately concurred that they had 
experienced similar difficulties mobilizing more than the 
political diehards in their parties to participate in their 
own internal elections for convention delegates.  While 
Panamenistas continue to push for an inter-party primary, CD 
and VMP representatives refuse to commit to such a primary. 
 
------------------------------------------- 
Torrijos to Wave Flag at PanAm Games in Rio 
-------------------------------------------- 
 
¶9.  (SBU) Responding to the sturm und drang over the 
Pan-American Sports Organization (ODEPA)'s suspension of the 
Panamanian Olympic Committee (COP) for intractable 
corruption, Panamanian First VP and FM Samuel Lewis told 
Ambassador July 4 that President Martin Torrijos had decided 
to travel to Rio de Janeiro for the PanAm games the week of 
July 9.  While normally such a suspension meant that Panama's 
flag would not wave nor its national anthem be heard, 
apparently ODEPA's rules state that if a country's head of 
state/government is present that such honors must be paid. 
With this artful maneuver, Torrijos adeptly responded to 
public calls that he do "something" where the GOP actually 
has little leverage.  Lewis added that, while it provided 
funding to the COP, the GOP had no actual control over the 
COP; "We're going to change that." 
 
------------------------------------------- 
Soviet-style, Torrijos Manipulates Election 
------------------------------------------- 
 
¶10.  (C) Torrijos manipulated the election for the President 
of the Panama Province Municipal Council on July 3 to ensure 
that his hand-picked candidate, San Miguelito Councilman 
Nicolas Barrios, was chosen in a PRD show of force, Panama 
City Councilman for San Francisco Carlos Perez-Herrera, PRD 
National Executive Committee (CEN) Member Samuel Buitrago, 
and Panamenista Party President Juan Carlos Varela all 
separately confirmed for the Panama Post on July 4. 
Perez-Herrera was the front-runner in a race against fellow 
PRD member Virgelio Crespo, a councilman from Panama City's 
Bella Vista District.  While Panama Province councilmen were 
to select their president during the week of June 25, 
Torrijos sought and secured a postponement until July 3, 
ostensibly to twist arms to secure more votes for Crespo. 
Unable to put Crespo over the top, Torrijos instead summoned 
the councilmen to the Casa Amarilla, a meeting center in the 
presidential compound.  Torrijos, First VP and FM Samuel 
Lewis, Panama City Mayor Juan Carlos Navarro, and Panama 
Province Governor Gladys Bandiera -- all of whom are neither 
members of nor able to vote in the Panama Province Municipal 
Council -- appeared on the stage to discuss this election. 
Torrijos stated that since there was no consensus in support 
of Perez-Herrera or Crespo, a councilman from San Miguelito 
should be chosen.  Torrijos and San Miguelito Mayor Hector 
Carrasquillo then consulted in whispers on stage for several 
minutes.  Then, according to our sources in a maneuver 
reminiscent of Supreme Soviet elections, Torrijos announced, 
"Who agrees that San Miguelito Councilman Nicolas Barrios 
should be President of the Municipal Council?"  Torrijos', 
Lewis', Bandiera's, and Navarro's hands flew into the air 
followed by the hands of many councilman who actually had a 
right to vote, after which Torrijos declared Barrios the 
winner. 
 
¶11.  (C)  Comment:  Our readers are probably asking 
themselves: why did Torrijos, accompanied by PRD heavy 
hitters Lewis and Navarro, go to such lengths to manipulate 
an inconsequential election?  Composed of councilmen from all 
of a province's municipalities, these provincial municipal 
councils and their presidents do control limited funds with 
which they can carry out minor public works projects (e.g., 
road repair, cleaning up parks), but they are largely 
ceremonial and symbolic.  One explanation is that Torrijos 
was unsatisfied with Perez-Herrera's independence stripe and 
wished to have a more reliable political operator in the 
position.  Perez-Herrera's fearlessness in being a stickler 
for adherence to proper procedure and effective oversight in 
Panama City's City Council, at times clashing with Navarro, 
probably raised questions as to whether he was the one to 
have at the helm of a possible pipeline for political 
patronage.  (Note:  Perez-Herrera has been selected for an 
International Visitor Program (IVP) on grassroots politics.) 
PRD National Executive Committee (CEN) member J. J. Amado, 
III provided POLCOUNS a more interesting explanation on July 
6: Torrijos intervened because the PRD internal campaign for 
the party's presidential nomination was beginning too early 
and being waged by proxy.  Perez-Herrera was seen to be 
former President Ernesto "El Toro" Perez Balladares' proxy, 
and Crespo to be Navarro's proxy.  To discipline the PRD and 
protect his preferred successor Lewis' interests, Torrijos 
slammed through Barrios.  The real winner in all this 
maneuver therefore was Lewis:  his cousin Navarro was put in 
his place, El Toro was forestalled, and Carrasquillo, who is 
mayor of Panama's second largest municipality and whom Lewis 
has been cultivating assiduously, puts his man in the job. 
This power play by Torrijos belies the PRD's assertions that 
all is A-OK inside the PRD and points to significant tensions 
between presidential aspirants who are already jockeying hard 
for position. 
 
--------------------------------------------- ----- 
Electoral Tribunal Expands Pool of Eligible Voters 
--------------------------------------------- ----- 
 
¶12.  (U) Panamanians of voting age who are overseas, in 
hospitals or in detention (but not sentenced) would be 
eligible to vote in Panama's May 2009 elections, the 
Electoral Tribunal (TE) announced July 3 as it launched its 
national effort to update the voter rolls.  Launching its 
update of the electoral roles, the TE said it expected 
2,294,538 Panamanians to be eligible to vote.  (Note: 
Panamanians do not register to vote.  Rather, the TE 
maintains a comprehensive national identity system of all 
Panamanians.  When they turn eighteen, Panamanians are 
eligible to vote and the TE adds their names to the voter 
rolls.)  TE Magistrate Eduardo Valdes clarified that only 
Panamanians "who had not adopted another nationality" would 
be eligible to vote overseas.  These changes, coupled with 
the number of Panamanians reaching voting age, would add some 
300,000 new voters, political commentator and human rights 
attorney Miguel Angel Bernal told the Panama Post on July 4, 
adding, "I am concerned that if not handled properly we could 
be opening the door to voter fraud."  Other opposition 
politicians Delia Cardenas and Juan Carlos Varela expressed 
similar concerns.  The TE will need to resolve whether 
overseas Panamanians vote only in the presidential race or in 
local elections as well. 
 
¶13.  (U) Further concerns were raised July 5 -- this time by 
PRD politicians -- when it was learned that 66,126 persons 
would be excluded from the voter roles.  According to the TE, 
those individuals excluded had neither voted in 1999, 2004, 
2006 nor taken any action to update their information (e.g., 
residence) with the TE.  Possible PRD presidential aspirant 
Balbina Herrera characterized this development as 
"worrisome," especially since Panama's Constitution did not 
require citizens to vote.  In essence, Herrera is concerned 
that voters, who are still alive and kicking, might have been 
disenfranchised because they had not voted in the past 8 
years nor had any reason to update their personal data with 
the TE.  The TE has launched an aggressive campaign urging 
voters to update their status with the TE if:  they will turn 
18 by May 2009, have changed residence, will require special 
attention due to a medical condition, plan to live overseas, 
or have a family member who has passed away.  Stay tuned. 
 
----------------------------- ----------------------------- 
Election Season Must be Near: Vallarino Measures Up Parties 
----------------------------- ----------------------------- 
 
¶14.  (U) Perennial presidential contender Alberto Vallarino 
said he would decide which party to join, either the 
Panamenista Party or the Patriotic Union (UP) party, over the 
next two months, in a July 2 interview on Channel 13.  In the 
end, his presidential candidacy would depend on the support 
he enjoyed.  Making the political rounds, Vallarino ate lunch 
July 2 with Endara's wife, Anna Mae, but not the ex-president 
himself, an interesting way to reach out to the Moral 
Vanguard of the Nation (VMP) party.   While Anna Mae de 
Endara has supported Vallarino in the past, VMP President 
Guillermo Endara has supported former President Mireya 
Moscoso. 
¶15.  (SBU) Several news outlets joked that the campaign 
season must be starting in earnest since Vallarino was 
mulling over which party to join and generating buzz as 
speculation mounts over which party he would join without 
making any commitments.  Regardless of which party he joins, 
Vallarino has the ability to upset the opposition calculus. 
He would  become the third or fourth Panamenista prospective 
presidential candidate. Also, by joining former former 1st VP 
Billy Ford in UP, Vallarino could serve as yet another anchor 
holding UP back from endorsing current 1st VP and FM (and UP 
godfather Samuel Lewis Galindo's nephew) Samuel Lewis Navarro. 
 
------------------------------------ 
2/3 Flunk Anti-Corruption Secretariat 
------------------------------------ 
 
¶16.  (U) Asked how they would characterize the performance of 
Torrijos' Anti-Corruption Secretariat in the fight against 
corruption, 62.7 percent of those polled said bad (43.7 
percent) or very bad (19 percent).  Only 28.9 percent said 
its performance was good, and 3.4 percent said it was 
excellent.  These results, which were part of a poll 
conducted by Dichter and Neira, were the latest tidbits that 
La Prensa meted out on July 3.  Local Transparency 
International Excutive President Angelica Maytin noted that 
the most significant development on this secretariat's 
activities was the elimination of its ability to conduct 
administrative investigations, what was "it's most 
significant function."  Meanwhile, the secretariat's 
spokesman said the poll reflected its low profile. 
Eaton