What follow are an exchange that took place on Don Winner's "Americans in Panama" email list and a discussion of the issues involved. The email exchange is as it was, without editing to correct grammatical or spelling errors.
Subject: Of Tourism and Telecom
From: "Mahesh C. Khemlani" <mkhemlani@h...>
Date: Wed Nov 26, 2003 11:03 am
To: americans_in_panama@yahoogroups.com
Hello all and for those of you that are new, welcome to Panama.
The country is going through some exciting changes right now. The tourism industry has been promising to take off and with the new development and construction taking place in Bocas del Toro, Chiriqui and San Blas we are well positioned to leverage those investments and grow our tourism industry.
The other industry that shows growing promise, is that of the recently deregulated telecommunication services sector. The total market for data, Internet and voice services in Panama is estimated to be in excess of $500 million in 2003 and is expected to grow significantly over the next half decade. You may access the statistics at the following link:
http://www.buyusainfo.net/info.cfm?id=109887&dbf=isa1&loadnav=no
We are a leading fiber facilities-based integrated communications provider offering local business "last mile" broadband connections for data and high-speed Internet access. We serve approximately 40 corporate customers in primary metropolitan markets in Panama. Our customers are principally telecommunications-intensive business end-users, long distance carriers, internet service providers, wireless communications companies and governmental entities. A representative list of our clients includes BellSouth, Global Crossing, MCI and SkyOnline.
We operate under the following licenses granted to us by the Panamanian regulatory agency (Ente Regulador de Servicions Públicos):
Licence Category License Description
101 Local Basic Voice Service
102 National Basic Voice Service
103 International Basic Voice Service
104 Public and Semipublic Payphones
105 Rental of Dedicated Voice Circuits
208 Inter-carrier Transmission Service
209 Data Carrier Service
211 Public Internet Service
220 Wireless Transmission Service
We are currently formalizing our international and local expansion strategy and are seeking an investment from interested qualified investors to execute on our strategy. The proceeds of this offering would be used primarily to purchase the necessary infrastructure to offer voice services.
We have an investor package of information that contains confidential company information, historical and projected financial statements, market statistics and competitive information as well as the summary of terms and conditions. The investor(s) would likely be an active participant in the Company's expansion strategy and would be allocated a seat on the Board of Directors of the Company.
The Company's management team has over 30 years of technical telecom and management experience at professional organizations such as Microsoft, Digex and the United States Air Force.
If you are interested in learning more about this opportunity, please e-mail me directly and we can discuss it. This project presents very compelling return on investment opportunities. The Company and its management team's references are fully available upon request. Only serious inquiries please.
Best Regards,
Mahesh Khemlani
~~~
Subject: Re: [americans_in_panama] Of Tourism and Telecom
From: editor@thepanamanews.com
Date: Wed Nov 26, 2003 2:02 pm
To: americans_in_panama@yahoogroups.com
Now isn't THIS odd --- with all the name-dropping of important companies, the company that's looking for you to invest your money via this spam DON'T EVEN NAME THEMSELVES?
Eric
~~~
Subject: Re: [americans_in_panama] Of Tourism and Telecom
From: "Mahesh C. Khemlani" <mkhemlani@h...>
Date: Wed Nov 26, 2003 2:29 pm
To: americans_in_panama@yahoogroups.com
Eric,
It is a valid concern.
I am happy to provide you with all the necessary documentation including of course the name of the Company provided you are serious and a qualified investor.
The names of the companies I mentioned. Global Crossing, MCI and SkyOnline do business with hundreds of organizations on a global basis therefore I did not really reveal confidential information.
Basically I am not about to reveal confidential information to people who are not serious.
I will also desist from posting further on this forum regarding this opportunity since you view it as spam.
I apologize and will not waste your time any further.
Mahesh
~~~
Subject: Re: [americans_in_panama] Of Tourism and Telecom
From: WinnerDK@aol.com
Date: Mon, December 1, 2003 1:47 pm
To: americans_in_panama@yahoogroups.com
Eric;
Once again, let me remind you that it is my job to control "spam" on this board, not yours. I met Mahesh and personally invited him to join the board. After signing him up, I introduced him to the group on 19 Nov in a "Welcome New Members" message (see message number 827). When we met, I explained to him my policy on posting business related messages on this board. In addition, if you will take the time to read the introductory message, I included a link to Mahesh's business web page, specifically;
"Also, welcome to Mahesh Khemlani, who is the CFO of OptyNex Telcom here in Panama City. The telecommunications industry was deregulated here in Panama last year, and now there are emerging opportunities that OptyNex plans to exploit in competition with guys like Telecarrier, BellSouth, Cable & Wireless, and Cable Onda. It's a tough market with lots of hungry competition, which is always a good thing for us consumers as prices drop and services expand."
I have since reviewed the post you considered to be "spam" and, once again, it is not. Mahesh followed my original guidance in posting business and investment opportunities to this board, and has since provided additional information regarding the taxation of international telecommunications, an area in which he is an expert. The last thing we need to be doing here is trying to intimidate members into not posting for fear of getting slammed by you.
So, for the last time, just relax and let me worry about controlling spam on this board. And again, it's my job, not yours. And I really wish you would stop trying to shout people down. It's just plain rude. If you don't like the traffic here, you are free to leave. And when you TYPE IN ALL CAPS it's the same as yelling. Why not try exercising some verbosity, logic, and intelligence instead?
For all other members, as always remember to exercise due dilligence in fully investigating any "investment opportunitites" presented here by our broad spectrum of members. There are a lot of people coming to Panama to work who are setting up all kinds of businesses, and no one ever started a new business with the intent of going broke. You are responsible for your own decisions, and there are lots of ways to get burned, but at the same time there is no gain without risk.
And again, just in case you missed it, the "advertising" policy remains as follows: It is perfectly fine to broadcast to the group a short and sweet advertisement to group members. Most of the members of this board are involved in local businesses in one way or another, and it makes perfect sense for us to network internally and look for B2B opportunities. Just don't abuse the privilage, and use "once a month or so..." as a guidestick. Make contact then discuss details between yourselves directly. Also, it would be especially nice if you could offer discounts or improved deals or service to board members.
I think I've said this about five times, basically every time a new member follows my guidance then get's jumped by Eric. The rest of you got it, right?
Don
~~~
Subject: Re: [americans_in_panama] Of Tourism and Telecom
From: "David McCarty" <chiefmc@yahoo.com>
Date: Mon, December 1, 2003 5:40 pm
To: americans_in_panama@yahoogroups.com
Heh dude, GOT IT!!!!!
~~~
Subject: Re: [americans_in_panama] Of Tourism and Telecom
From: editor@thepanamanews.com
Date: Mon, December 1, 2003 4:56 pm
To: americans_in_panama@yahoogroups.com
I see now --- my mistake.
As they describe themselves:
"From first-generation analog phones and digital phones to next-generation packet based virtual circuits, Optynex Telecom has been producing unrivaled information technology and communications services year after year."
"Optynex Telecom has created a nationwide inter-city facilities based network by acquiring rights to unlit fiber optic strands, or "dark fiber," connecting large metropolitan areas in Panama City and metropolitan dark fiber rings within the cities we intend to serve."
>From someone else:
MEXICAN DATA NETWORK DEAL SIGNED
SANTA CLARA - MetroNet, one of Mexico's leading telecommunications companies, has reached an agreement with Santa Clara-based Riverstone Networks Inc. for the company to provide its multi-protocol labelswitching (MPLS) technology to build one of the most advanced metropolitan networks in Mexico. ... Most recently, Riverstone signed a similar deal with Optynex, Panama's first integrated telecommunications provider, to use its MPLS technology to deliver Ethernet services to that country's largest metropolitan areas.
"Year after year."
Eric
~~~
Subject: Re: [americans_in_panama] Of Tourism and Telecom
From: "Mahesh C. Khemlani" <mkhemlani@hotmail.com>
Date: Tue, December 2, 2003 10:57 am
To: americans_in_panama@yahoogroups.com
Eric,
Thanks for pointing out the improper use of English on our website. We are in the process of overhauling our entire corporate communication and marketing department (including of course our website) which up until now catered exclusively to Spanish speaking executives at corporations.
We have not done it yet as we have been busy pursuing other important business activities like successfuly growing our existing customer and revenue base.
Best Regards,
Mahesh Khemlani
mkhemlani@hotmail.com
~~~
The above exchange is an example of several phenomena.
First, understand that the company in question could only enter the Panamanian telecommunications market at the beginning of 2003, under a license that was granted to it in July of 2002. The "year after year" remark is NOT about bad English, it's about bad ethics. The English on Optynex's website is well nigh perfect --- better than my own English in the above email exchange, if the truth is to be told --- but the content of its message is a misrepresentation of fact.
It does seem that there is an actual business there, and it might even be profitable for an investor to get in on the ground floor with Optynex. But maybe not. Do you want to trust your money with a company that misleads you as to how long it has been in its business?
What we are dealing with here is the much discussed issue of transparency. Now somebody might well say that this opaque style of business is in the Panamanian tradition, but then the reputation for this sort of thing is one of the main reasons why so many international investors scrupulously avoid Panama.
Second, notice that at the start of 2003 Panama was supposed to get competition in telephone service, but in the all-important fixed line telephony sector we didn't get it. We got this sort of thing instead.
The mechanics by which the government has continued the Cable & Wireless telephony monopoly past its expiration date was by the Public Services Regulating Board (Ente Regulador) granting a sham fixed line telephone service license to a company owned by a relative of a Cable & Wireless Panama exec, which included ruinous fees to connect into the C&W system, and then the board declaring that agreement as the base rate for all others seeking to compete in the fixed-line telephone business. Other than for long-distance calls, we didn't get any actual competition. No serious business would offer basic telephone service under the conditions set by the sham contract.
Meanwhile, despite all of the "prequalification" hoops usually demanded of companies that want pubic concessions, a bunch of telecommunications licenses went to start-ups that puffed themselves up as big-time operations and then went with concessions in hand in search of investors. That's what Optynex is and does.
Third, it seems that Optynex isn't listed on Panama's Bolsa de Valores. If it were the pitch it uses would violate Panamanian securities trading rules.
Fourth, although the infamous Marc Harris now awaits sentencing in an American jail, the use of Panama as a center for international Internet fraud continues because Panamanian authorities refuse to act in cases where the victims are foreigners. During his years of using Panama as a base for his "offshore asset protection" schemes, Harris enjoyed the protection of Attorney General José Antonio Sossa and the patronage of the Pérez Balladares administration. Ultimately Harris's reputation became so odious that Panama's National Securities Commission (CNV, by its Spanish initials) closed his network down for dealing in securities without a license, and the courts upheld the CNV's ruling. But he was far from the only offender.
The Panama News frequently gets emails from people who complain of having been cheated when buying land in Bocas del Toro or Chiriqui that they had never seen, or who want advice on such purchases. Panama does offer many attractions, but this newspaper's advice is that buying real estate without having seen it and without having a reputable and competent law firm examine the title is dumb, that swallowing any sort of get rich quick pitch is even dumber, and that dealing with gringos offers no particular protection against being swindled.
Finally, there is the issue of Internet ethics. There is at least one online publication operating out of Panama that gets a commission when it steers a buyer to a shady real estate operation. Then there are those who vouch for investment pitches that don't meet the smell test, while disavowing any responsibility for the consequences of their actions.
One of the principal defenses against Internet fraud is open discussion about it. But scamsters and their accomplices go well out of their ways to suppress any such discourse. Frequently, those who raise the subject are told to "get a life" or "mind your own business." Mr. Winner's routine of equating the questioning of a questionable sales pitch with "jumping" its maker is but a small jump beyond the usual brushoff. The "five times, basically every time a new member follows my guidance then get's jumped by Eric" allegation by Mr. Winner is false and easily enough exposed by a simple review of the message logs of his Internet group.
Speaking out about underhanded business techniques on the Internet is usually not a matter of nosing into other people's affairs. When one of Panama's American residents is involved in such practices, or when misleading commercial messages are disseminated through institutions that identify themselves with this country's American community, it gives anti-American demagogues an opportunity to smear the entire community with a broad brush, unfairly portraying it as a bunch of swindlers. (Given the generally friendly US-Panamanian relations, you can't imagine it? If you have ever had to flee your home in the face of an anti-American riot, or if you have ever spoken with some of Panama's more obnoxiously opportunistic activists, both of which things this reporter has done, you will understand the importance of distinguishing gringos in general from gringo hustlers in the eyes of most Panamanians.) Then there is the particular interest of The Panama News and other legitimate Internet businesses, which are hampered by a generalized reputation that the net is the domain of scam artists and sexual predators. Online advertising is effective for many purposes but it doesn't fetch prices commensurate with the number of people it reaches because the industry has been identified with the exaggerated claims of dot-com hustlers.
The Panama News has been hoodwinked a few times over the years, but will not knowingly publish advertisements for a fraudulent scheme, or which contain misrepresentations about otherwise legitimate propositions. If you are looking to spend your money on a "20 to 30 percent annual return on investment" farm that you have never seen, an idyllic retirement home for which you pay the price of a home but get a non-voting share in a corporation rather than title to a specific piece of real estate, a cut of the action in a purported Nigerian currency transfer violation, a special elixir that cures all that ails ye or guaranteed safe and effective penis enlargement pills, maybe this isn't the publication for you.
And by the way, there IS a pretty good email group for people who have moved to or are thinking about moving to Panama and all of the practical problems that they face, including discussions about the various scams of which folks should be aware. That's the Viviendo en Panama, a Yahoo group which, despite its name, is in English. Subscribe to this list at Viviendo_en_Panama@yahoogroups.com .
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