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Canal boss's family gets first big expansion contract

by Eric Jackson

 Phase One of the digging for the Pacific entrance to the new set of Panama Canal locks, a 6.7-kilometer "dry dig" that will remove 7.4 million cubic meters of material, including Cerro Paraiso, has been awarded to CUSA, a Panamanian company, whose bid of $41,094,000 was the lowest among 10 bidders, mostly foreign companies in consortia with Panamanian junior partners.

CUSA is owned by the Alemán Zubieta family. Panama Canal Authority administrator Alberto Alemán Zubieta was CEO of CUSA before he became the canal's top executive. The company is currently run by the canal administrator's cousin. It has been claimed that Alberto Alemán Zubieta sold his shares in CUSA about five years ago. When the American management of the Panama Canal ended, US federal restrictions on conflict of interest were replaced by a new rule that says that there is no conflict of interest when a canal manager or director owns 30 percent or less of a company doing business with the canal. There are no restrictions whatever on companies owned by relatives of top people at the Panama Canal Authority getting canal contracts.

The international media that have reported on the contract, the AFP and EFE news services, did not mention the family connection. Here the PRD-aligned media are protesting the transparency of the bidding process and feigning outrage that anyone would allege a conflict of interest, while former President Guillermo Endara and the SUNTRACS construction workers' union lead the chorus of people who urged a "no" vote in the 2006 referendum and are now citing the first major construction contract as an example of how the "yes" campaign used public funds to promote the private interests of public officials and their families.

The digging, which will create a 218-meter wide channel between the present canal channel near Rodman and new locks site on the Culebra Cut, is expected to start in August. Also part of the job that CUSA won is the rebuilding of a road that's in the new channel's path and the moving of power lines in the affected area.

US-RP free trade rushes to ratification here, still uncertain in USA
First big canal expansion contract goes to canal administrator's relatives
Trying to attract tourists back to the USA

Persistent poverty
The Panama News readership figures
Business & Economy Briefs