Business & Economy Briefs

RP stays on FATF blacklist

President Moscoso and the country's political and business leaders were disappointed and in some cases surprised by a February 1 announcement by the Group of Seven industrialized nations' Financial Action Task Force that Panama would remain on its blacklist for insufficient commitment to fight money laundering. Last fall Panama changed its money laundering laws to greatly expand the number of crimes whose proceeds can't be legally concealed. The FATF, meeting in Madrid, decided that it wanted to see the new laws enforced before taking Panama off the blacklist.

Weeden admits shortfall

After many months of dismissing or minimizing reports that Panama's economy is ailing, the government has had to admit that it's affected. Comptroller General Alvin Weeden has warned that the government's budget is out of whack because the state's tax revenues are lower than expected. Panama's budget as passed by the legislature and signed by the president was balanced, but now it will show a deficit at the end of the fiscal year. Spending is being cut to limit the red ink.

Aeroperlas goes international

After gaining permits to fly international routes, then losing them in some unusual proceedings, the Aeroperlas airline has formed an alliance with Costa Rica's Grupo TACA and obtained permits to fly to destinations throughout the Americas. The company has not yet announced which routes it will fly and when.

Parking meters coming

In a bid to raise money and control congestion, Panama City will soon be installing a lot of parking meters. The city is looking for proposals from private contractors to install and service the meters.

Bars to close early?

National Police Chief Carlos Barés would like to make the bars and discos close at 1 a.m. That suggestion has prompted pleas of poverty from bar owners, many of whom are suffering slow times like most others doing business here. However, a lot of people who don't like noise and drunk drivers seem to like the idea. The proposal would have to be accepted by municipal authorities to become law.

Taiwan backs projects

The government of Taiwan has awarded $1 million worth of grants to promote advances in tiliapia and shrimp raising, artesanal fishing and fruit production. Taiwan's agricultural assistance programs have been active in Panama since the early 1980s.

Ad agency turns 19

Sanchíz, Siebrasse & Asociados SA, one of the country's top ad agencies and the local affiliate of Ketchum, recently celebrated its 19th year in business. The company, started in the 80s by Miguel A. Sanchíz, Jr. and later joined by his wife Donna Siebrasse de Sanchíz, reports that they are one of the few ad agencies that had a good year in 2000. The firm's offices are located on the seventh floor of the World Trade Center.

Shipping notices by email

The Panama Canal Authority has ended its long-standing practice of sending MR Notices to Shipping and other information for the maritime industry to companies by regular mail. Now shipping agents and others can subcribe to these notices by email, or consult the Panama Canal Website, http://www.pancanal.com/eng/maritime/index.html , where such notices are now posted.

CARITAS complains of canal information control

The Caritas Catholic social ministry's Héctor Endara Hill has publicized a letter to the Panama Canal Authority that complains of requests for information about the canal watershed expansion being ignored. The complaint is unusual mainly in that it was public, as the authority's Corporate Communications office has alienated most journalists who deal with them. In the case of The Panama News, the corporate communications office has not answered our questions about whether the authority publishes tide tables anymore. The organic law that created the Panama Canal Authority provided that it would have a policy of freedom of information, but the implementing regulations say much about employees being fired for divulging information and nothing at all about any public right to know anything at all about the nation's most valuable public asset.

Martinelli likes snow, Russia

In the January 26 issue of Panama Canal Authority's newspaper El Faro, Canal Affairs Minister Ricardo Martinelli was interviewed. The article had little to do with any canal issues, but we did learn that Martinelli, whose ministry controls some of Panama's prime recreational assets, says his favorite sport is snow skiing, his most restful days are spent outside Panama, he likes John Grisham novels and the country that impresses him the most is Russia.

Canal mishaps

The Panama Canal has been experiencing a string of minor accidents. Most recently a Greek tanker leaked about 5,000 gallons of oil into the Pedro Miguel Locks and forced the closure of one lane as the problem was being resolved. Earlier, an Indian grain carrier ran aground in Culebra Cut. Nobody was injured in either mishap.

RP sells $750 million in bonds

Panama has raised $750 million from US investors by selling ten-year bonds with a yield of 9.72 percent, via the JP Morgan and Morgan Stanley brokerage houses. The transaction was for the purpose of re-financing old debts at a lower interest rate.

University may act about phone vandalism

In the course of protests against telephone rate increases, masked young militants have been smashing all public phones that they can, starting with those on campus. Now it's hard to find a pay phone on campus, and university rector Julio Vallarino says that any students identified found responsible for such damage will face a disciplinary council that may throw them out of school.

Invaders routed

On January 25 hundreds of police and squatters fought a pitched battle in Tocumen, at the end of which one cop was hospitalized, 25 squatters were under arrest, and about 450 people who had seized eight hectares of land belonging to SUCASA were obliged to go elsewhere.

RP loses labor suit

Some 270 public workers who were fired in December 1990 for allegedly trying to overthrow the Endara government have won a lawsuit for about $70 million in back pay after a trial before the Inter-American Court of Human Rights in San Jose, Costa Rica. The ex-employees argued that they were protesting the government's policies, not attempting a coup. The Moscoso administration has not announced whether it would abide by the decision.

Doctors' union brawl

Last November the doctors, dentists and other health care professionals who work in the Social Security system and are represented by the AMOACSS union voted to oust the old president and replace him with Dr. Guillermo Pérez Silva. However, when the time came to transfer the office, AMOACSS secretary general Octavio Mena declared that the winner's papers weren't in order, and a rump disciplinary committee dominated by the old guard purported to expel Pérez Silva from AMOACSS. The dispute appears headed for the courts.

Must have permit

Latin America's tallest building may be going up on Calle 50 and Via Brasil, but the developers never submitted an environmental impact statement and the National Environmental Authority (ANAM) is imposing sanctions. The neighbors at the Ombudsman's office say that work on the foundations makes their building shake, and ANAM wants to show developers large and small that it's serious about environmental impact statements and permits. The possible fines, however, are nominal for a multi-million dollar project like this one.

Fleeing bad check suspect shot

On February 3 a private security guard for the Super 99 in Paitilla shot and killed Emilio Alberto Linares Ríos, a man in his 50s or 60s who was fleeing after allegedly being caught trying to pass a bad check. Police took the security guard, who witnesses say shot the suspect in the back with a .38 caliber revolver, into custody.

Cuba's debt a problem here

Cuba owes Panama's Grupo Rodin $40 million, and the island nation's slow payments for Lada spare parts and other merchandise have put Kunzing, SA, the group's Colon Free Zone exporter, in trouble with its lenders. Recently Kunzig's representatives, and those if its creditor banks, flew to Havana for three-way negotiations about payment terms. Cuba's economy has never fully recovered from the collapse of the Soviet-led Comecon trading bloc.

Howard-Kobbe-Farfan megaproject scrapped

On the advice of the World Bank's International Finance Corporation (IFC), ARI has shelved plans to turn Howard Air Force Base and the adjacent Fort Kobbe and Farfan into a giant multi-modal shipping center. The IFC checked the market and found no rush to invest, and determined that Panama is not ready to develop Farfan into a seaport with its own resources. Thus ARI plans to sell the properties separately, with Howard most likely to become a regional air freight hub and Kobbe to be used for residential and recreational purposes.

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