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Volume 14, Number 8
April 20 - May 3, 2008


business & economy

Also in this section:
Can Six Diamond adjust to local conditions and succeed in Bocas?
Government wants another electric rate hike
Flouting an ancient construction code in the San Carlos mangroves
Business & Economy Briefs
Bus problems prompt protests, but no quick solutions
Playa Bonita land concession held illegal
How will the US recession affect Panama?
Another risk of living and doing business in Panama
Panama, Costa Rica, El Salvador securities markets move toward merger
Can Howard's free zone save Cocoli's?
Indigenous activists plan to be players in development decisions
Previous Business & Economy Briefs




Bern loses big in court

Developer / hotelier Herman Bern isn't used to losing. Via the Paradise Beach Corporation that he controls he managed to win the concession for four large lots of land at the former Fort Kobbe on which he has built his exclusive Playa Bonita hotel and resort in a process wherein opposing bidders were excluded by the old Interoceanic Regional Authority (ARI).

However, the would-be competitors sued and while Bern moved to create a fait accompli on the ground the case ground for years through the courts. Finally, however, it got to the Supreme Court and that body held that the process by which the land for Playa Bonita was conceded was illegal.

So what to do now? The losing party and the former ARI officials involved in the process are complaining about the decision, and one of their stronger arguments is that if this deal was illegal, so were lots of other ARI concessions. Well, yes, under the Pérez Balladares and Moscoso administrations ARI was a lawless, bloated and parasitic organization that wasted much of what was supposed to be coming to the Panamanian people under the 1977 Panama Canal treaties. But arguments about that don't deal with the problem at hand for Bern and Playa Bonita.

Attorneys
Guillermo Cochez and Víctor Martínez are moving to have Bern and the hotel evicted and the whole land deal declared a $2 million misappropriation of public assets. What's more likely however --- and hinted at in the high court's judgment --- is that to keep his hotel Bern is going to have to pay damages to the people who were prevented from bidding on the property.

The precedents set in earlier court cases doesn't mean nearly as much in the Civil Code system of justice that Panama has as it does in the Anglo-American legal system. However, as a indication of how the high court is thinking after recent personnel changes, the Playa Bonita case surely has to worry all the developers who got land on Amador from ARI and have not made the payments required under their contracts, put in landfills without permits, or got their concessions by making false statements or rigging the process. These abuses describe many of the people who hit ARI jackpots, and now it seems that their days of getting away with things may be over.

Photo by José F. Ponce, caption by Eric Jackson



















Also in this section:
Can Six Diamond adjust to local conditions and succeed in Bocas?
Government wants another electric rate hike
Flouting an ancient construction code in the San Carlos mangroves
Business & Economy Briefs
Bus problems prompt protests, but no quick solutions
Playa Bonita land concession held illegal
How will the US recession affect Panama?
Another risk of living and doing business in Panama
Panama, Costa Rica, El Salvador securities markets move toward merger
Can Howard's free zone save Cocoli's?
Indigenous activists plan to be players in development decisions
Previous Business & Economy Briefs

News | Economy | Culture | Opinion | Lifestyle | Science | Outdoors
Noticias | Opiniones | Calendar | Archive | Unclassified Ads | Home

Make the Executive Hotel your headquarters in Panama City --- http://ww.executivehotel-panama.com
Find the boat of your dreams through Evermarine --- http://www.evermarine.com

 

© 2008 by Eric Jackson
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