Business & Economy Briefs

Buses pulled off road

In a series of post-holiday operations around the country, Transito police made about 300 drivers park their buses by the side of the road and discharge their passengers. The drivers couldn't show proper driver's licenses, permits or vehicle registrations, or else the buses they were driving were found unsafe. The stops followed a holiday season during which the police issued more than the usual number of speeding tickets, and even a few drunk driving citations, to bus drivers.

Corregiduria evicted

Usually, a corregiduria is the place where an order to evict a deadbeat tenant is issued. On January 4 Arraijan correigidora Surgey Magallón was the one being evicted. Her office had been rented from businesswoman Edith Martínez, who hasn't been paid in 14 months. When Martínez withheld her city taxes last year to prompt payment, the city ordered her business closed. The lease ran out at the end of 2000, so Martínez threw the Panamanian equivalent of a justice of the peace out. The argument over unpaid rent continues.

San Fernando gets canal retirees' contract

HNA Panama, which administers the US-subsidized health care plan for Panamanian pre-treaty canal retirees, has chosen San Fernando Clinic as the sole provider of specialist care for plan members. HNA had been looking for a single provider, citing economies of scale. Some of the plan members say they are not happy about having to change doctors and vow to stage protests against the contract.

Fiduciary Fund argument

The Fiduciary Fund for Development, created under the Pérez Balladares administration with the proceeds from the sales of state-owned enterprises, has sparked more arguments. Critics from the PRD allege that the fund is losing money that it otherwise would have earned had it been invested more astutely, but the Moscoso administration says that the fund has been making money at a time when many investors are losing big. The fund is invested conservatively in the United States, and the government adds that no Panamanian officials are receiving commissions from the fund.

Mixed review for Bolsa in 2000

Panama's stock and bond exchange, the Bolsa de Valores, reports a big increase in volume and just as large a decline in values over the past year. In its annual report, the market said that it did $1.361 billion worth of business in 2000, up 20.9 percent. The main increase in volume, however, was companies buying back their own securities. Over the year the prices of shares exchanged via the Bolsa declined 23.3 percent, with the worst losses registering in the second quarter. Four companies that had traded shares on the Bolsa were dropped from the exchange last year.

ADELAG restructures

The ADELAG Group, which runs department stores, car dealerships and other businesses, appears to have fended off closure by way of a restructuring agreement with its creditor banks. The company's woes have mainly to do with slow consumer demand, especially for durable consumer products, during 2000.

Creditor takes orange juice company

Banco Cafetero has sequestered the assets of Citricos, SA, due to a $9 million debt. Citricos, which owns about 4,000 hectares of orchards in Chiriqui and employs about 250 people, makes about half of its $40 million in annual sales in Panama and the other half in North America and Europe. A weak domestic economy and subsidies for competitors in foreign markets have left the orange juice producer in a vulnerable position.

Cellular phone supplies to be made here

SETO Holdings, a high tech manufacturing company based in Briarcliff, New York, has formed a joint venture with G COM NET, a New York-based retailer, to manufacture cell phone batteries, antennas, chargers, cases and hands-free attachments in Panama for the Latin American market. In a press release, the two companies cited Panama's new duty-free export processing zones as the key factor that led their decision to open a factory here.

Amador fantasies evaporate

ARI now admits that three big tourism development projects that were supposed to have happened at the former Fort Amador were mirages. The $300 million "Fantasy Island" project turns out to have been a fantasy, as were the $100 million Los Reyes and the $25 million Anchorage Entertainment hotels. Protracted litigation over bonds that were posted by those who won these concessions is expected. It seems, however, that the prior ARI administration awarded some of the failed project concessions without the concessionaires actually having paid the bonds, and now the authority's new management says it is trying to collect them.

Mireya blames Toro for rate hikes

Seeking to deflect public anger over higher telephone and electricity rates, President Moscoso has pointed out that the contracts that privatized the old INTEL and IRHE state-owned utilities allow the new owners to raise their prices as they have done. She said that she does not intend to renegotiate the contracts or nationalize Cable & Wireless or the electric companies.

Punta Mala house for sale

Stung by criticism of the money she spent to renovate a beach house at Punta Mala, near Pedasi, for presidential functions, Mireya Moscoso has decided to put the property on the auction block. The property belonged to the government, more specifically the nation’s penal system, before Moscoso took office, so the proceeds from its sale will go toward improvements in correctional institutions.

Margarita sports complex transferred

Pursuant to a request by legislator Miguel Bush (PRD-Colon), Margarita’s pool, gymnasium, tennis courts and Little League field have been transferred by ARI to the Asociacion de Mujeres del Siglo XXI. ARI had promised to transfer the complex to the Patronato Complejo Deportivo de Margarita, a group headed by prominent Colon business leaders that had pledged to maintain the facilities and put them at the disposal of the National Sports Institute (INDE). It is not clear exactly who the Asociacion de Mujeres del Siglo XXI are or what they intend to do with the properties, but both the patronato and INDE are crying foul over the procedure. ARI has overseen the transfer and destruction of most of the Atlantic side sports facilities that have come into its hands.

Agricultural duties going up

In its last legislation of the year 2000, the assembly has raised protective duties on imports of eight agricultural products for food processing businesses. The industry had enjoyed special low tariffs on imported onions, potatoes, tomatoes, rice and other products, but now food processors will have to pay the same duties as other importers.

Public purchases to be listed online

Citing a need for transparency in light of persistent corrupt government purchasing decisions over many years, Comptroller General Alvin Weeden has announced that during the course of 2001 all government purchases will be published on the Internet for the public to peruse.

Glaxo Wellecome leaving

Due to the recent merger between multinational pharmaceutical giants Glaxo Wellecome and SmithKline Beecham, the Glaxo’s regional headquarters will be moving from Panama to Costa Rica. Some 80 employees stand to lose their jobs, but the company says that it is trying to reduce this number by finding other jobs for as many of them as possible.

Furniture stores in receivership

The Ana de la Americana furniture store chain suffered a devastating blow on December 18, when creditors obtained sequestration orders from at least two courts. That killed late Christmas sales, left about 100 employees out of work and left some customers at least temporarily unable to get furniture for which they had paid deposits.

also in this section: Controversial copyright provision suspended Dismantling Gatun Railroad to begin limited passenger service in April
©2001 The Panama News