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US ambassador’s remarks prompt crisis
for Panamanian politicians

by Eric Jackson


American Ambassador Linda Ellen Watt recently received an invitation to talk to Panama’s Chamber of Commerce on the subject of “Toward a Culture of Democracy,” and she accepted. This time, it was not an exercise in diplomatic platitudes.

Watt didn’t name names, but she blasted the pervasive culture of corruption in Panamanian politics and warned that it’s hurting our international reputation and driving foreign investors away. On the other hand, she echoed with approval an American professor’s opinion that “if Panama could lower its level of corruption and improve the rule of law, it could make a great leap forward in its competitiveness. This would translate into millions of dollars, which would be reflected in increased investment and the creation of jobs.”

Good governance, Watt said, “is not an academic or theoretical principle, but a requisite for a democracy and a primordial condition to attract investment.” Calling for permanent dialogue between the government and civil society, judicial security and transparent, equitable and professional management of public business, the ambassador said that voters must demand good conduct from candidates and public officials. “If these leaders violate ethical norms,” she said, “they shouldn’t be elected, let alone reelected.” She criticized the institution of legislative immunity, “which inevitably becomes impunity.” She said she approved the Legislative Assembly president's idea of docking the pay of legislators who don’t bother to attend the assembly’s sessions. “The only compensations that a public official must receive is his or her salary and the satisfaction of a duty well accomplished,” she said.

Watt denied the adage that a little bit of bribery smooths the functioning of government, and asserted that companies that play this game waste time and money compared to competitors that don’t. “Corruption and embezzlement of funds carry costs that can be measured,” she argued, citing various losses to society that such practices entail.

She also criticized the lack of transparency in government and the use of “gag laws” to intimidate journalists who would report on unseemly government conduct. Watt, herself a career diplomat, also called for a professional civil service instead of a political patronage system.

(The full text of Ambassador Watt’s speech, in its original Spanish, is published in the Spanish-language opinion section of this issue of The Panama News.)

The things that Linda Ellen Watt had to say were not things that Panamanian critics of our political class hadn’t said many times before. However, they represented the United States government taking notice of the prevailing climate of corruption in Panama. On RPC-TV’s Debate Abierto morning talk show, PRD legislator Balbina Herrera, who said she was appalled by a speech that she considered US intervention in Panama’s internal affairs, characterized Watt’s remarks as more than a personal opinion. “It’s a US government policy,” Herrera alleged, and a few days later in Washington the State Department confirmed that the ambassador’s speech had been reviewed and approved in advance at Foggy Bottom. Herrera compared Watt’s pronouncements with US diplomatic statements and policies toward Nicaragua, whose former president is in facing criminal charges for misappropriation of public funds in his own country and a US indictment for laundering his ill-gotten fortune in the United States.

Balbina is mentioned as a possible running mate for PRD presidential candidate Martín Torrijos, and another person whose name has been suggested for that role, former La Prensa publisher and Foreign Minister Ricardo Alberto Arias, concurred in her criticism of Watt’s statement. He compared the ambassador’s remarks to a Panamanian diplomat in Washington commenting on the validity of American elections or the proofs that George W. Bush offered to support a war with Iraq. Torrijos himself, however, said that Watt’s statements were the truth, and leaders of the PRD’s junior coalition partner, the Partido Popular, likewise approved of what the American diplomat said.

Torrijos’s most serious rivals in the 2004 presidential race, the Solidaridad ticket headed by Guillermo Endara and Guillermo Ford, also refrained from disputing Watt’s remarks. “I sincerely believe that it’s up to the president to consider Watt’s words and respond,” Ford said at his initial press conference as a vice-presidential candidate. “It’s painful that a high official of a friendly government had to say this.”

The Legislative Assembly, which had been set to approve a treaty by which Panama would promise not to turn Americans accused of human rights violations over to the International Criminal Court in The Hague, put off the third and final vote on that measure, and allegedly because of the ambassador’s remarks a majority of the members boycotted the assembly’s sessions. (Local wags had a lot of fun with that one, especially as the deputies did not give up their pay while staying off the job.)

President Moscoso ultimately did respond, but at first allowed her followers to do so. Arnulfista legislator Francisco Reyes --- the guy who recently pulled a gun on electric company workers who came to his home to disconnect the illegal hookup through which he was stealing electricity --- called the US government one of the world’s “most corrupt and immoral” and moved to have Watt declared persona non grata. The president’s sister-in-law Ivonne Young --- the Minister of the Presidency whose secretary was found to store far more than she honestly earned from her government salary in cash in her freezer --- called Watt’s speech “regrettable.” Eventually Moscoso herself called the speech “inappropriate” and her foreign ministry announced that a formal letter of protest would be issued.




Also in this section:
Panama News Briefs
Scenes from the Social Security protests
Billy Ford bolsters the Endara ticket
Ambassador Watt's bombshell
On the campaign trail


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