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C O N F I D E N T I A L PANAMA 001197 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 07/13/2017 
TAGS: PREL PGOV SNAR KCRM PM
SUBJECT: PANAMA POST:  EDITION V 
 
REF: PANAMA 1143 (AND PREVIOUS) 
 
Classified By: POLCOUNS Brian R. Naranjo.  Reason:  1.4 (b) and (d) 
 
------- 
Summary 
------- 
 
¶1.  (C) In this week's edition, the Panama Post takes a look 
at the internal workings of the governing Revolutionary 
Democratic Party (PRD) and the Patriotic Union (UP) party. 
Also, the Panama Post reports that the Technical Judicial 
Police (PTJ) reform effort is on hold and that its newly 
appointed director has only a limited time to show progress 
weeding corruption out of the PTJ's ranks and fighting major 
crimes.  Finally, one senior GOP official concedes that 
Panama's RCTV statement was the price Panama paid to avoid a 
Chavez visit.  Also, the visit of Cuban National Assembly 
President Ricardo Alarcon demonstrates that the Comfort visit 
got under Cuba's skin.  The following is a summary of our 
headlines: 
 
-- Governing Revolutionary Democratic Party (PRD) National 
Assembly Majority Leader handicaps the race for National 
Assembly President; 
-- Governing PRD National Assembly Majority Leader says PRD 
"is a big mess;" 
-- Former President Ernesto "El Toro" Perez Balladares may be 
soliciting campaign donations by promising lucrative 
construction contracts 
-- Former VP Billy Ford discusses internal Patriotic Union 
(UP) party dynamics; 
-- Newly appointed interim Technical Judicial Police (PTJ) 
Director Jose Ayu Prado has six months to clean house; 
-- Presidential foreign policy advisor agrees Panama's RCTV 
statement intended to keep Chavez away from the OASGA; and 
-- Cuban National Assembly President Ricardo Alarcon huddles 
with Panamanian National Assembly President Elias Castillo to 
discuss response to Comfort visit. 
 
End summary. 
 
--------------------------------------------- ----------- 
Nat'l Assembly Majority Ldr: Race for Assembly President 
--------------------------------------------- ----------- 
 
¶2.  (C) PRD National Assembly Majority Leader Leandro Avila 
vented July 9 to the Panama Post about his frustrations with 
President Martin Torrijos, both as PRD Secretary General and 
President of Panama.  "He is a dictator, the way he wants to 
be.  We cannot even blame the people around him; he is the 
one making the decisions," Avila said, complaining about 
Torrijos' ignoring the National Assembly.  Avila said he 
became even more upset because of Torrijos' effort to secure 
a third term as National Assembly President for Elias 
Castillo.  "There are forty-two PRD deputies.  Can't Torrijos 
find another suitable National Assembly President?  Why 
Castillo again?"  Avila then shared that PRD deputies, with 
Castillo in the room, three times voted down a proposal to 
change the National Assembly's internal by-laws to allow for 
Castillo's re-election.  Other candidates for National 
Assembly President included:  Hector Aleman, Pedro Miguel 
Gonzalez, Raul Rodriguez, and Ruben de Leon.  Avila asserted 
that Aleman had been told by Torrijos to take a walk and said 
de Leon was recovering from a kidney transplant and so was 
not being seriously considered.  Gonzalez had grown close to 
Torrijos and had a better shot at the position than 
Rodriguez, Avila assessed. 
 
¶3.  (C) Comment:  Pedro Miguel Gonzalez is wanted in the U.S. 
for the 1992 murder of U.S. serviceman Zak Hernandez and is 
ineligible for a U.S. visa for terrorist activity.  Current, 
National Assembly President Elias Castillo has sought a 
meeting with POLCOUNS to discuss his replacement, but was 
busy with visits to Quito and Havana.  Post has been putting 
the word out on the street that Panama should think twice 
about putting a terrorist at the head of the National 
Assembly.  Avila asserted that Gonzalez has been telling 
deputies that, should he be elected National Assembly 
President, he would be able "to smooth over his problems with 
the U.S.," a false assertion post is working to shoot down. 
 
--------------------------------------------- ------ 
PRD Nat'l Assembly Majority Ldr:  PRD in "big mess" 
--------------------------------------------- ------ 
 
¶4.  (C) "The party is in a big mess, a big, big mess," PRD 
National Assembly Majority Leader Leandro Avila told the 
Panama Post July 9. "We are lucky that the opposition is so 
disorganized and split that we will win in 2009, but who will 
be our (presidential) candidate?"  Panama City Mayor Juan 
Carlos Navarro "is more fake than a three dollar bill," Avila 
said.  Minister of Housing "Balbina Herrera, however," Avila 
said, "would be our best choice if (First VP and FM) Samuel 
Lewis does not do better; I doubt he will.  At least she is a 
party person and is not ungrateful like Martin Torrijos." 
Regarding recent reports of the PRD's impressive membership 
drive, Avila said that the Electoral Tribunal (TE) would find 
a large number of duplicate registrations.  "I saw people 
registering that had been registered with the PRD for years," 
Avila explained.  Avila also confirmed rumors that the TE was 
pressing the PRD to hold its internal elections in 2007. 
"They have been talking about internal elections on Sunday, 
December 16.  December 16!?!  For God's sake, who has 
political party events in December?" Avila vented.  Only 
party zealots would participate.  "That means there will be a 
lot of buying of votes.  A lot of money is going to go 
around." 
 
¶5.  (C) Comment:  Normally, the PRD is a hermetically sealed 
party.  Highly disciplined, PRD loyalists are generally loath 
to shed much light on the party's internal dynamics and 
deliberations.  The fact that it is becoming easier to find 
PRD members willing to blab about the party is the best 
indicator that there is a heightened degree of turmoil in the 
party. 
 
--------------------------------------------- ---------- 
El Toro Solicits Campaign Funds With Contract Promises? 
--------------------------------------------- ---------- 
 
¶6.  (C) Former President Ernesto "El Toro" Perez Balladares 
was soliciting campaign donations -- USD 2,500 per month -- 
by promising lucrative contracts to donors, a contact of 
Sedrick Hodgens told the Panama Post.  Ostensibly, Perez 
Balladares wished to assemble a group of 10 to 20 businessmen 
who would ensure a steady cash flow for the former 
president's 2009 presidential campaign.  Hodgens apparently 
was actively trying to recruit the Panama Post's contact as a 
contributor.  Comment:  The Panama Post can neither confirm 
nor deny this report, but is not surprised that the campaign 
money game has already started.  Panama has neither any laws 
regarding the amounts an individual or company can donate to 
a campaign nor any reporting requirements for contributions 
that are received. 
 
------------------------------------ 
Billy Ford Dishes Discusses Politics 
------------------------------------ 
 
¶7.  (C) "I have been asked to consider running for president 
of the Patriotic Union Party," former VP Guillermo "Billy" 
Ford confirmed for POLCOUNS July 11, "but I do not want to 
split the party."  Ford asserted that current co-presidents 
Anibal Galindo and Jose Raul Mulino had each separately 
pitched Ford to run as president of the party, though both 
had also wavered as to whether they themselves would run. 
(Note:  Galindo was president of the Liberal National Party 
(PLN), and Mulino was president of Solidarity; both parties 
united to form UP.) Ford said that recently, Galindo told him 
that he was going to back out of the race and that he 
believed Mulino would too.  Mulino, however, told Ford that 
he had decided to run.  Ultimately, Ford said he did not want 
to split the party between those members who used to belong 
to Solidarity and those were National Liberals. 
 
¶8.  (C) Turning to candidates for President of Panama, Ford 
reiterated that he had spoken with UP patriarch -- and uncle 
to First VP and FM Samuel Lewis and father-in-law to 
presidential aspirant Alberto Vallarino -- Samuel "Don Sammy" 
Lewis Galindo regarding any effort to have UP align itself 
with the PRD.  "I will resign from the party if it aligns 
itself with the PRD.  I cannot go there," Ford said he told 
Don Sammy.  Ford said that Don Sammy, for his part, said he 
would support his nephew should he win the PRD presidential 
nomination, but would not seek to bring UP into alliance with 
the PRD.  If Lewis were the PRD's presidential candidate, 
Ford said, Mulino would contemplate an alliance with the PRD 
if it brought UP into government and Mulino into a vice 
presidency.  Conversely, if Vallarino were the Panamenista 
Party presidential nominee, Ford said, UP would easily enter 
into alliance with the Panamenistas.  Former President Mireya 
"Moscoso told me that wants to see Vallarino as the next 
president of Panama," Ford told POLCOUNS.  Acknowledging that 
Moscoso was also reaching out to former President Guillermo 
Endara and behind former Panamenista Party President Marco 
Ameglio's drive for the presidency, Ford said he believed 
Moscoso, who he characterized as a tough as nails politician 
who wielded significant influence to shape the opposition, 
was behind Vallarino.  "End of the day though, all of this 
means nothing.  Endara is right when he says that parties do 
not matter, candidates matter.  We need to find a good 
candidate," Ford said.  "We also need to be unified, or we 
will lose to the PRD." Regarding his own aspirations for 
higher office, Ford added, "I told Endara that I do not want 
to be his vice presidential running mate.  I have done that 
job; I am too old and tired for that. Taking the helm of the 
Patriotic Union party would be enough for me." 
 
¶9.  (C) Comment:  Ford clearly aspires to take the helm of UP 
and believes that he can steer this party of some 120,000 
members away from the PRD.  Ford's strategy to lay back and 
wait to be recruited is wise as Ford can rise to the top as 
the party unifier.  His interest in Vallarino being the 
Panamenista presidential candidate serves Ford's interest as 
it would clear the way for an easy UP-Panamenista union. 
Interestingly, Ford had little to say about his former 
running mate Endara, even when asked who the most eligible 
presidential candidates were. 
 
------------------------------------------- 
New PTJ Chief Has Six Months to Clean House 
------------------------------------------- 
 
¶10.  (SBU) Newly appointed Technical Judicial Police (PTJ) 
Director Jose Ayu Prado told the Panama Post that he would 
only have six months on the job and was unlikely to be 
re-appointed by Attorney General Ana Matilda Gomez. 
Regarding the future of the PTJ and whether it would 
disbanded with most elements being absorbed into the 
Panamanian National Police (PNP), Ayu Prado said that the PTJ 
reform legislation was basically on "stand-by."  The Attorney 
General's Office and the Torrijos Administration had agreed 
to a wait-and-see period until roughly mid-September during 
which Ayu Prado would need to make progress on weeding out 
corruption in the PTJ and make more progress on the 
investigation of major crimes, particularly narcotics and 
homicide cases.  Ayu Prado said he traced the PTJ's internal 
problems to weak integrity controls and poor management. 
 
¶11. (SBU) Comment:  The Panama Post agrees with Ayu Prado's 
assessment that poor management and internal controls need to 
be addressed.  Post's NAS is already engaged to develop 
strategies for supporting Ayu Prado in these endeavors. 
 
--------------------------------------------- ------ 
Ritter:  GOP's RCTV Statement Price to Avoid Chavez 
--------------------------------------------- ------ 
 
¶12. (C) "Panama's statement that Chavez's decision to close 
RCTV was a sovereign decision and that Panama would not 
interfere in Venezuela's internal affairs was the price we 
paid to ensure Chavez would not attend the OASGA," 
Presidential foreign policy advisor Jorge Ritter confessed to 
POLCOUNS on July 12.  Ritter said that Panama did not 
negotiate this outcome with Venezuela.  While Panama sent 
emissaries to Caracas to pass the message that Panama did not 
want a prospective visit by Chavez to the OASGA to rain on 
Panama's parade, Ritter said that the decision to make the 
statement -- which Ritter said he opposed -- was a unilateral 
decision essentially to offer a sop to Venezuela.  Ritter 
said the Torrijos Administration was surprised at the level 
of domestic backlash to this announcement. 
 
¶13. (C) Comment:  Ritter's explanation demonstrates the 
lengths to which Panama, in its efforts to pursue "balanced, 
friendly" relations with all countries that seek friendly 
relations with it, will go to avoid a ruckus, especially when 
it is hosting the big shindig. 
--------------------------------------------- --- 
Alarcon and Castillo Discuss Response to Comfort 
--------------------------------------------- --- 
 
¶14.  (C) During Panamanian National Assembly's third and 
final debate on the U.S.-Panama Trade Promotion Agreement 
(TPA), Cuban National Assembly President Ricardo Alarcon and 
Panamanian National Assembly President Elias Castillo were 
upstairs discussing ways to respond to the visit of the U.S. 
Navy Hospital Ship COMFORT, Panamenista Deputy Francisco 
"Pancho" Aleman told POLCOUNS on July 13.  Aleman stated that 
he was a member of the Cuba-Panama inter-parliamentary 
exchange so that he could keep tabs on Cuban activities. 
Castillo was accompanied by PRD Deputies Pedro Miguel 
Gonzalez and Hector Aleman.  Castillo and Alarcon discussed 
how best to respond to the Comfort's visit including by 
bringing more Cuban doctors to Panama, striving to do more 
surgeries and treatments, and advancing a more aggressive 
propaganda campaign.  Aleman said he was stunned that Alarcon 
was upstairs in the National Assembly building while 
downstairs in the chamber deputies were preparing to approve 
ratification of the U.S.-Panama TPA, the most significant 
achievement in the bilateral relationship since the signing 
thirty years ago of the Panama Canal treaties. 
 
¶15.  (C) Comment:  Castillo, Gonzalez, and Aleman have a 
known affinity for Cuban activities in Panama such as the 
Operation Miracle (Operacion Milagro) eye surgery effort. 
This huddle to discuss a response to the Comfort only serves 
as another example to underscore the success of the Comfort's 
visit. 
Eaton 
C O N F I D E N T I A L PANAMA 001197 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 07/13/2017 
TAGS: PREL PGOV SNAR KCRM PM
SUBJECT: PANAMA POST:  EDITION V 
 
REF: PANAMA 1143 (AND PREVIOUS) 
 
Classified By: POLCOUNS Brian R. Naranjo.  Reason:  1...