Business & Economy Briefs

 

Labor leader buys first mate's certification
After many months of the Panama Maritime Authority's denials that its employees are illegally selling seaman's certificates without requiring proof of certification, the International Transport Workers Federation's secretary-general David Cockroft, who has no maritime training, actually bought a certification as a first mate for $4,500. The authority's Jerry Salazar is still insisting that nothing is amiss, but he sent 26 of the authority's employees home on vacation and brought in a team of auditors. While Salazar's investigation may "prove" that there is not corruption in his bailiwick, news of the fraudulent certification has been widely publicized in the world shipping industry press and may lead to sanctions against Panama-flag shipping or sailors with Panamanian credentials. The federation estimates that more than 12,000 people are working in the world maritime industry with fraudulently obtained Panamanian certifications.

 

Layoffs at TVN
The TVN television network, which has been suffering like all of the other Panamanian media that depend on advertising sales, has fired 42 employees. Those let go were from the administrative and news departments.

Banana company denied permit for layoffs, but insists
The Ministry of Labor has denied an application by the Puerto Armuelles Fruit Company (a subsidiary of Chiquita Brands) to cease operations and let some 540 workers go. However, the company, which has been taking heavy losses in recent years, said it will appeal the decision.

Private school enrollments down
As the school year starts, one indication of the hard times that Panama's middle class is going through is a drop in private school enrollments estimated at about 15 percent. The estimate is that of the Union of Private Educational Centers, which has about 75 private school members.

Cabinet mulls punitive ad sales policies
El Panama America reports that the Cabinet Council has discussed the withdrawal of government advertising from that daily as a means to retaliate for its unfavorable coverage of a road building project that passes by Comptroller General Alvin Weeden's and Government and Justice Minister Winston Spadafora's farms. The paper, which was founded by Arnulfo Arias's brother Harmodio, says that it will not be intimidated by such pressures from the Arnuilfista government.

EXPOCOMER smaller
Panama's leading trade fair, EXPOCOMER, was less well attended and fewer deals were struck, this year than in the past. The Chamber of Commerce said that some $90.6 million worth of business was conducted at the expo, down more than 10 percent from 2000. The biggest absence this year was Puerto Rico, which had large pavillions in the past several expositions.

CNV warns about La Prensa proxies
On March 22 a slate headed by former Foreign Minister Ricardo Alberto Arias will try to elect a majority of directors at La Prensa, a move that's bitterly opposed by many of the employees and founders of the daily. Now the National Securities Commission (CNV) is warning that Panamanian law restricts proxy voting in contests for control of corporations, and that shareholders will have 90 days after the vote to withdraw their proxies. Technicalities may decide the issue if the vote is close, as it is expected to be.

Some school openings delayed
The public school year began on March 12, but not for everybody. Some 65 schools were unfit for use and awaiting repairs, and a few were completely unusable and beyond repair, as studies were supposed to begin. Education Minister Doris Rosas de Mata blames "government bureaucracy" for the problems.

Roadwork controversy
A 4.6-kilometer road from La Arenosa further up the western shore of Gatun Lake has drawn public criticism because only four houses are along said road, and two of them belong to Comptroller General Alvin Weeden and Government and Justice Minister Winston Spadafora respectively. The road had been planned for some time. El Panama America broke the story, complete with photos of heavy equipment rented by the Social Investment Fund working on Weeden's property. Weeden said that the crews were working on his farm after hours. Spadafora has filed criminal defamation and trespassing charges against several journalists at the daily.

No concerts on Amador
ARI has rejected a request by the Volumen Brutal record store, which promotes rock concerts, to hold a concert on the Amador Causeway. The authority cited possible damages that large crowds might cause.

CLICAC alleges oxygen monopoly
The Free Competition and Consumers Affairs Commission (CLICAC) has sued the two Panamanian companies that sell tanked oxygen for monopolistic practices. The commission said that Aceti Oxygeno SA and Distribuidora de Gases Industriales SA rigged the bidding for the Social Security system contract in 1998 to keep prices up.

Container scanning contract avoided
At a board meeting reportedly attended by Canal Affairs Minister Ricardo Martinelli, Maritime Authority director Jerry Salazar, Customs director Mercedes de Villalaz, presidential bodyguard (SPI) director Alejandro Garauz, National Security Advisor Pablo Quintero Luna, and presidential advisors George Weeden and Alvaro Antadillas, the Panama Maritime Authority awarded a bidless contract worth more than $100 million per year to International Container Inspection System SA for the electronic scanning of containers for contraband. The company would have received 85¢ per foot scanned, but a rival business said that it had offered to do the work for 70¢ per foot. While Martinelli and Salazar had nothing to say about the deal, Colon Free Zone merchants and business groups whose members’ costs would go up as the result of the bidless contract protested, and the government found a procedural defect (the deal hadn't been approved by the Comptroller) to reject the contract.

C&W layoffs
Cable & Wireless is reducing its Panama work force by about 450. Many of the employees to be let go will be given voluntary retirement options, while about 50 were fired because the company said that they have not reached the level of technical proficiency to do their jobs.

C&W claims about The Panama News false
For at least four days, subscribers to Cable & Wireless’s Internet service were unable to gain access to the online edition of The Panama News (www.thepanamanews.com). In response to numerous complaints over several days by this newspaper and our readers, Cable & Wireless told our readers that our online edition was out of service. This was not true, and after we complained to the Public Service Regulating Entity the company restored its readers’ access to our newspaper, sent us an email telling us that it was a complicated problem that took their technicians two hours to fix, and accused us of overreacting to their block against our website.

AMSOC art sale
The American Society of Panama will have a juried art show and sale on April 26, at a place to be announced. Artists interested in participating should contact the society for the details.