business & economy

Also in this section:
US-RP free trade pact stalled
Torrijos to veto parts of controversial public transportation law
Lunchtime on Avenida Peru

Costa Rica holds CAFTA referendum
Chorrera demolishes, China builds
Business & Economy Briefs

Business & Economy Briefs

More rice imports approved

In the face of sharply increased rice prices, seen both in the prices of bags and in lower quality rice being sold as a higher grade, the Cabinet Council has approved the importation of two million quintals of unpolished rice between now and April 1, 2008. Panamanian rice farmers are not happy, and there is a three-cornered war of words among President Torrijos, supermarket owners and rice millers about who's really to blame for the high price of rice. Panamanian rice farming is mechanized and chemically sprayed, thus very petroleum intensive and high world oil prices have much to do with the higher rice prices.

CEMIS now officially dead

The CEMIS project, an ambitious multimodal interface among the Colon Free Zone, France Field airport, the Panama Canal Railroad and the Manzinillo International Terminal and Colon Container Terminal seaports, is officially dead. When the contract for the project, made between the Colon Free Zone and the Consorcio San Lorenzo was approved during the Moscoso administration in 2002, there were immediate charges of large-scale bribery of the legislature that resulted in a PRD-led coalition losing control over the assembly, multiple and complex lawsuits and the contract becoming a dead letter. One alleged piece of documentary evidence had Martín Torrijos's name on it as well as various numbers and legislators' names, with some claiming that this indicated the amounts of bribes to be paid and the then PRD leader and now president's involvement. That line of inquiry was cut short by an unusual Supreme Court ruling that if a legislator with immunity from investigation or prosecution commits a crime in league with a person who does not have such immunity, the non-legislator is protected by the legislator's immunity. Legislator Carlos Afú, then PRD but now Panameñista, was the one who originally alleged a payoff, which everyone else supposedly implicated denied. Despite the end of the criminal investigation, the whole matter became too much of a political liability to be revived. Finally the Colon Free Zone board of directors notified the Consorcio San Lorenzo that the contract had been rescinded. It appears that the company will not appeal or litigate.

Court validates OPC contract

Back in the Pérez Balladares administration, Martín Torrijos's cousin Hugo Torrijos was head of the National Port Authority (APN) and Rubén Reyna was his deputy. The APN, which has since been superseded by the Panama Maritime Authority (AMP), handed out some controversial and lucrative contracts in those years, one of which was with Ocean Pollution Control, a company that contains oil spills. It seems that the president of Ocean Pollution Control, one Jovan Vukelja Matthews, was Reyna's partner in another company. Now the Supreme Court's Third Bench, with magistrates Víctor Benavides and Winston Spadafora forming the majority and their colleague Adán Arnulfo Arjona dissenting, has held that notwithstanding the conflict of interest the 1997 contract is valid. Anti-corruption activists and much of the press have denounced the ruling as another victory for corruption.

Caterpillar to open regional center in Arraijan

The world's largest heavy construction equipment manufacturer, Illinois-based Caterpillar, says it will open a regional training, sales and call center in Arraijan, investing some $25 million and creating about 300 permanent jobs.

Two more construction worker deaths

On October 1 Jorge Poveda, who had been injured in a workplace fall on September 17, died of his injuries. On October 9 Abdiel Rodríguez fell to his death at a construction site in Rio Hato. With these incidents the number of construction workers killed on the job this year went up to 25.

Well shiver me timbers

No, that's not Clarence Thomas's favorite movie character out there. The Business Software Alliance says it's most Panamanians. As in, the software industry's international anti-piracy group says, 74 percent of all computer programs used by businesses in this country being bootlegged.

National Bank of Panama repossesses 70 buses

Of some 600 metro area buses purchased with National Bank of Panama loans granted by the Moscoso administration to head off a bus strike, 70 have been repossessed by the bank for non-payment of the loans.

Corredor Sur tolls up

The Ministry of Public Works has announced a 10 percent hike in Corredor Sur tolls. There are some criticisms by consumer groups and others about the amount of the increase and the procedure used to grant it.

MOP wants city to give Odebrecht a tax break

The Ministry of Public Works (MOP) is asking Panama City's municipal government to exempt the Brazilian construction company Norberto Odebrecht SA from city taxes for the Colon to Panama toll road. There has been no public explanation of why this tax break is justified, and the city council is studying the matter.

Figali accused of stealing electricity

Controversial businessman Jean Figali has been accused by the Union Fenosa power company of stealing more than $170,000 worth of electricity for his Figali Convention Center, and a circuit prosecutor has opened a criminal investigation. Figali denies the allegation, claiming that he uses generators to keep the lights on at the unfinished but much used building on the Amador Causeway. Whatever the prosecutors think they can prove, they will still have to count on a defendant with amazingly loyal friends on the Supreme Court.

Direct service between Panama and Amsterdam

The growing importance of Europe's tourism and business ties with Panama, and the increased Latin American demand for international air services that bypass the United States and its reputedly abusive Department of Homeland Security has again enhanced Panama's importance as an air hub. Starting in March KLM Royal Dutch Airlines will offer three direct flights a week between Panama and Amsterdam.

US-RP free trade pact stalled
Torrijos to veto parts of controversial public transportation law
Lunchtime on Avenida Peru

Costa Rica holds CAFTA referendum
Chorrera demolishes, China builds
Business & Economy Briefs