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C O N F I D E N T I A L PANAMA 001476 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 08/31/2017 
TAGS: PGOV PREL ECON PM
SUBJECT: PANAMA:  TORRIJOS NAMES NEW CABINET 
 
REF: PANAMA 1440 
 
Classified By: Ambassador William A. Eaton.  Reasons:  1.4 (b) and (d). 
 
------------------- 
Summary and Comment 
------------------- 
 
¶1. (U) Replacing five cabinet ministers, Panamanian President 
Martin Torrijos named a total twenty-seven high-level 
appointments to his administration.  Torrijos' decisions were 
announced by Secretary of State Communication Erich RODRIGUEZ 
Auerbach on August 30 in a press release.  On August 27, all 
fourteen of Torrijos' cabinet ministers tendered their 
resignations paving the way for Torrijos to act freely to 
reshape his cabinet (REFTEL). 
 
¶2.  (C) There were no surprises among the five ministers who 
are leaving the cabinet.  Former Minister of Health Alleyne, 
former Minister of Education Canizales, and former Minister 
of Labor Rivera were all weak politically, ineffective 
managerially, and had increasingly become burdens to the 
Torrijos Administration.  Former Minister of the Presidency 
had told Embassy that he wanted to leave government and 
return to private life.  Political insiders were not 
surprised to see former Minister of Government and Justice 
Golcher depart, though her stepping down may have been a mild 
surprise to the wider public.  As for the new appointments, 
post sees three caretakers who have risen from the back 
benches one rising star, and one appointment made in the 
spirit of coalition maintenance.  The caretakers are: 
Minister of Education Belgis Castro, Minister of Labor Edwin 
Salamin, and Minister of Health Rosario Turner.  The rising 
star is Minister of Government and Justice Daniel Delgado. 
Second VP Arosemena was named Minister of the Presidency 
largely in a gesture to his Popular Party (PP), the PRD's 
electoral coalition party. 
 
¶3.  (C) This new cabinet suggests that the days of grand 
initiatives by the Torrijos Administration are over.  Also, 
his choices and the manner in which they were made suggests 
that Torrijos appointments were made more out of a defensive 
reflex than any effort to seek political advantage.  This 
cabinet will focus on completing tasks already begun, 
cleaning up existing messes, and striving to ensure that new 
problems do not crop up.  Replacing over one-third of his 
cabinet, yet announcing his action through anodyne press 
statement, intentionally passed up an opportunity to make any 
greater political statements. 
 
------------------------------- 
The Cabinet: Who's Out/Who's In 
------------------------------- 
 
¶4. (C) The following is a summary of the five new cabinet 
ministers: 
 
Minister of the Presidency (Chief of Staff Equivalent): 
-- Out:  Ubaldino REAL 
-- In:  2nd VP Ruben AROSEMENA Valdes 
-- Comment:  Real's departure for private life was 
anticipated.  Though no longer formally in the 
Administration, Real -- a close personal friend of Torrijos 
-- will undoubtedly remain an advisor and conduit to the 
President.  Press commentary has suggested that Arosemena's 
appointment is a sop to the Popular Party (PP), the oft 
forgotten ally of the governing Revolutionary Democratic 
Party (PRD).  Arosemena was Torrijos' primary representative 
in brokering the 2006 social security reforms.  Moving 
Arosemena from the Maritime Authority of Panama (AMP) may 
help Arosemena disassociate himself from that corruption 
plagued organization.  His departure from AMP will also 
fecilitate the continuation of lucrative "profit sharing" of 
consular spots among some elites within the Torrijos 
Administration hierarchy. Though relatively young, Arosemena 
has battled health problems recently and under went surgery 
for fused vertebrae in the U.S. in 2006.  It remains to be 
seen whether he has sufficiently recovered to be able to 
physically withstand the crushing workload of his new 
position. 
 
Minister of Government and Justice: 
-- Out:  Olga GOLCHER 
-- In:  Daniel DELGADO Diamante 
-- Comment:  Though political insiders had speculated that 
Golcher would depart, the announcement that Delgado would 
replace her was probably the most surprising development to 
most Panamanians.  Golcher told Ambassador she will be 
apointed as Panamenian Ambassador to Argentina.   Embassy has 
had extensive dealings with Delgado in his prior post has 
Director of Customs, which reports to the Ministry of Economy 
and Finance.  Delgado improved customs operations and raised 
the morale of customs personnel.  A former Lieutenant Colonel 
in the extinct Panamanian Defense Forces (PDF), Delgado may 
come under some scrutiny for past associations with Noriega. 
For example, he was the PDF's commander in San Miguelito 
during Operation JUST CAUSE and a member of Noriega's 
Strategic Military Council (CEM).  His ascension to the head 
of the Ministry of Government and Justice (MOGJ) may be cited 
as evidence of "re-militarization." The U.S. should not be 
distracted by this kind of white noise.  Delgado was the 
Secretary General of the MFA  early part of the Torrijos 
administration and in the administration of former President 
Ernesto "El Toro" Perez Balladares.  A Panamanian public that 
increasingly demands more security is more likely to welcome 
a strong hand than criticize a military past.  Delgado may 
benefit from a closer relationship with the Council for 
Public Security and National Defense (CSPDN) than did Golcher 
who grew frustrated as the CSPDN asserted influence and 
control over security-related entities in the MOGJ.  Embassy 
has had extensive positive interaction with Delgado. 
 
Minister of Education: 
-- Out:  Miguel Angle CANIZALES 
-- In:  Belgis CASTRO Jaen 
-- Commet:  Canizales' departure is not a surprise and 
indeed has been urged by many Panamanian political 
commentators for some time.  Castro was previously the 
Director of the Institute for Human Resources Development 
(IFARHU), which distributes and supervises university and 
post-graduate scholarship programs.  For thirty years, she 
has been a professor of history and philosophy.  A PRD 
activist in Chiriqui Province, Castro previously served as 
Vice Rector of the Autonomous University of Chiriqui, which 
is party  of the University of Panama system.  Castro takes 
the helm of a dilapidated educational system that is in 
desperate need of reform if it is to produce adequately 
prepared workers in sufficient quantities to ensure a skilled 
Panamanian work force to meet the continuing demands of 
Panama's booming economy. 
 
Minister of Labor: 
-- Out:  Reynaldo RIVERA 
-- In:  Edwin Salamin 
-- Comment:  Rivera was on most Panamanian political 
observers' short list of those who would get the ax. 
Salamin, for the past three years, has served as Rivera's 
number two as Vice Minister of Labor and Secretary General of 
that ministry.  A lawyer and PRD member, Salamin played a key 
role in brokering a deal between Panama's business community 
and labor leaders that paved the way for the 2005 social 
security reforms.  Salamin inherits a tense GOP relationship 
with the radical SUNTRACs construction union, a relationship 
that has been marked by violent clashes that resulted in the 
deaths of two SUNTRACS members, one at the hands of private 
security guard and the other of the National Police of Panama 
(PNP).  The Embassy has enjoyed a good relationship with 
Salamin, who has been active in addressing labor issues 
related to the U.S.-Panama Trade Promotion Agreement (TPA) 
 
Minister of Health 
-- Out:  Camilo ALLEYNE 
-- In:  Rosario TURNER 
-- Comment:  Alleyne's political future was on the ropes in 
the run-up to this cabinet shake-up.  Alleyne's popularity 
nose-dived in the wake of the deaths of over 100 Panamanians 
who were poisoned with CSS-produced medicines contaminated 
diethylene glycol, an ingredient commonly used in 
anti-freeze.  A PRD loyalist and Mexican-educated 
pediatrician, Turner previously was the Medical Services 
Director at the Social Security Fund (CSS).  Turner 
represented the Torrijos Administration on health issues in 
the UN Development Programme (UNDP)-facilitated national 
dialogue on development.  It remains to be seen whether 
Turner will retain Alleyne's staffers who had forged strong 
ties with their U.S. Department of Health and Human Service 
(HHS) counterparts, ties that were instrumental in launching 
the Regional Healthcare Worker Training Center with U.S. and 
Central American partners.  Coming from the CSS, Turner will 
also need to grapple with the political baggage of the 
diethylene glycol tragedy. 
 
----------------------------- 
Other High-Level Appointments 
----------------------------- 
 
¶5.  (U) Rodriguez also announced the following additional 
high-level appointments: 
 
-- Vice Minister of Labor Felipe CANO 
-- Vice Minister of Economy Gisela ALVAREZ de Porras 
-- Vice Minister of Social Development Diana MOLO 
-- Vice Minister of Agricultural Development Adonai RIOS 
-- Director of the Authority of Transit and Ground 
Transportation (ATTT) Heraclio BATISTA (Note:  By naming a 
full-time ATTT Director, MOGJ Viced Minister Severino Mejia 
can now return undistracted to his regular ministerial job.) 
-- Sub-Director of the Authority of Transit and Ground 
Transportation (ATTT) Armando Fuentes 
-- Director of the National Air Service (SAN) Rigoberto 
GORDON Saldana 
-- Director of the Social Investment Fund (FIS)  Carlos 
Alberto GARCIA Molino 
-- Director of the Agricultural Development Bank (BDA) 
Roberto JIMENEZ 
-- Manager of the Tocumen S.A. (International Airport) Orcila 
DE CONSTABLE 
-- Secretary of the National Secretariat of Food and 
Nutrition (SENAPAN) Mery ALFARO de Villageliu 
-- Director of Immigration Clovis SINISTIERRA (Note: 
SINISTIERRA was previously a senior CSPDN functionary.) 
-- Sub-Director of Immigration Tayra BARSALLO 
-- Director of the Aquatic Resources Authority (ARAP) 
Reynaldo PEREZ Guardia 
-- Director of the Maritime Authority of Panama (AMP) 
Fernando SOLORZANO (Note:  Replaces 2nd VP Ruben Arosemena.) 
-- Director of the Institute of Agricultural Research (IDIAP) 
Jorge AUED 
-- Director of the Agricultural Insurance Institute (ISA) 
Olmedo ESPINO 
-- Director of the National Institute of Arts and Culture 
(INAC) Anel Omar RODRIGUEZ 
-- Commissioner of the National Securities Commission (CNV) 
Juan Manuel MARTANS Sanchez 
-- Commissioner of the National Securities Commission (CNV) 
David SAIED 
-- Director of the Institute for the Formation and 
Advancement of Human Resources (IFARHU) Samuel BUITRAGO 
(Note:  Buitrago is the youngest member of the PRD CEN.) 
 
¶6.  (U)  Rodriguez also announced that Juan Jose "Tres 
Palitos" Amado, III had resigned as Director General of the 
National Institute of Aqueducts and Sewers (IDAAN) and asked 
the Board of Directors to submit to him its nominee to 
replace Amado.  (Note:  Amado is also a member of the PRD 
CEN.)  Rodriguez's announcement also stated that Leonel SOLIS 
Benavides, Executive Secretary of the Presidency, would be 
assuming responsibility for supervising the public 
transportation modernization process. 
EATON