By José Otero for La Prensa - Panama's First Anti Drug Prosecutor concluded its review of the Perseus V case file, and in their opinion asked for the six people implicated in the case to be called to trial, including four former employees of the National Maritime Service (SMN), as well as the former Director of the SMN Ricardo Traad Porras. The prosecutor's opinion, which was forwarded to the Fourth Criminal Court, calls to trial in addition to Traad, Eduardo Morales, the former manager of government property, Roberto Fierro, the Chief of Logistics, and Edilberto Luna, the former Chief of Operations, all of the SMN. (more)

By Jean Marcel Chéry and Rafael Rodríguez for La Estrella - More than $1.5 million dollars has been embezzled from the Fund for Fairness and Quality in Education (FECE) in San Miguelito. What began with a checking account of the Gallardo family has ended in the unraveling of a complex network of public employees, businesses, friends, and those in favor with the PRD. The details of the story are all coming together now that Joaquina Gallardo has turned herself in to the PTJ. She points to other public employees, such as the ex-regional Director of Education in San Miguelito Betsy Guzaman, who until now has not been implicated in the case. Guzmán responds with another accusation.

By DON WINNER for Panama-Guide.com - Alma Montenegro de Fletcher is the Chief of the Panama's National Council for Transparency Against Corruption, and recently has been embroiled in a controversy involving Balbina Herrera. In a recent symposium that was supposed to promote the role of women in government, Balbina Herrera announced to the gathered crowd that she intends to officially run for the position of the Mayor of Panama City. The room was full of government employees who were supposed to be attending training and not a political event. And, Alma Montenegro de Fletcher was in attendence. Opposition political leaders have called for the resignation of both Balbina Herrera as the Housing Minister and Alma Montenegro de Fletcher as the anti-corruption czar.

Copyright 2007 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

By Rafael Luna Noguera for La Prensa - Dolores Guerra, who this week filed a criminal complaint against a former adviser to the Ministry of Government and Justice Blas Toto Velásquez for having tried to extort money from her in the name of two Supreme Court justices, made an additional complaint to the "Defensoría del Pueblo" saying that she has received death threats and that she fears for her life and the safety of her family. Guerra, who was received received by the Secretary General of the Defensoría, Carlos Vásquez, asked the institution to investigate her complaint, which has ties to a land dispute case in Chiriquí and the supposed sale of a decision in her favor in the case. Vásquez suggested that Guerra appear before the organs of state security to let them know about the death threats she has received.

Panama America - Those implicated in the embezzlement of public funds from the Fund for Fairness and Quality in Education (FECE) in San Miguelito could face new charges for the supposed falsification of more than 238 checks. So far authorities have only talked about the forging of the signatures of Betzy Guzmán and Yoira Perea, the ex-Director and Sub-Director of the FECE. But, in the declaration of the Ex-Director of the FECE Augusto Garcia, he indicates that the manager of the Banco Nacional in San Miguelito, Norman Vanegas, said that those checks were not printed by the bank. According to Vanegas, the number appearing on at least 14 of the checks do not correspond with checks printed by the organization. However, the Nations Comptroller Carlos Vallarino said that the stolen checks were kept on shelves since 2003, according to an audit. So far 16 days have gone by since this scandal broke but still nothing is known about the whereabouts of the primary suspect implicated in the case, Joaquina Gallardo, the ex-accountant of the FECE.

El Siglo - Operation "Ley Patriotica" (Patriotic Law) continues to be devastating in Chiriquí, where now another foreigner is under investigation. Sources close to the investigation said the person being investigated is a Dominican named Anthony Andujal. The source, who asked to reserve his identity, said that Anthony supposedly was a business partner with Salim Salen or Salim Safadi, a Nicaraguan of Lebanese origin, who is also under investigation. The residence of the Dominican was inspected by the authorities in charge of the DIIP together with the First Anti Drug Prosecutor of Panama. According to sources close to the investigations, the residence of the Dominican is located in Paso Canoas before the bridge over the Chiriquí Viejo river. (more)

By Eneida Prieto for the Panama America - More than $11,000 in cash and checks have been given by the lawyers for Joaquina Gallardo to the Auxiliary Prosecutor, who demanded to know the origin of the money. It was known that one of Gallardo's brothers, Luis Peña Torregrosa, bought a blue Land Cruiser for approximately $48,000 in cash. The luxury SUV with "full extras" was released this week from a lien and transferred to another person, even though the FECE scandal had already exploded. Sources indicated that the Judicial Technical Police (PTJ) have arrest orders for Nedelka Gallardo and Yaribeth, the sister and niece of Gallardo, respectively. Authorities went to the house of Gallardo's father but the two women have not been located so far. It was also known that one of those involved in this scandal, a teacher named Pedro Pablo Sáenz, fears for his life after several subjects robbed him of thousands of dollars last week. Sáenz received several thousand dollars under the identity of the company Digital Sáenz Tecnology, according to Ministry of Education audits. According to the information provided, two employees of each branch of the Banco Nacional could be involved in an organization that helped to cash the checks without asking for greater details. In the case file there is evidence that the father of a teacher named Teodoro Castillo (of the same name), cashed checks in the banks in Milla 8, El Dorado, and Tumba Muerto.

By José Otero and Migdalia Grinard for La Prensa - With new arrests yesterday, the number of people detained for possible connections to the drug trafficking network being dismantled by authorities rose to 40. According to Anti Drug Prosecutor José Abel Almengor this group was responsible for smuggling at least one ton of cocaine this year. In related news, yesterday in the Province of Colon 2,400 kilos of cocaine were seized. Almengor said that this seizure does is not connected with the recently dismantled network.

La Prensa - Twenty seven members of the National Police (PN) and Judicial Technical Police (PTJ) were arrested in recent hours for supposed connections to a drug trafficking network recently dismantled by authorities. In statements given in Chiriqui and Panama, Anti Drug Prosecutor Jose Abel Almengor, and the Directors of the National Police and PTJ, Rolando Mirones and Jose Ayú Prado respectively, said that these police officers were taken into custody and will be interrogated. They added that those arrested will begin to give their statements today, but that the process could extend over several days due to the large number of officers arrested. (more)

By Virgilio De León for La Prensa - Panama's President Martin Torrijos announced yesterday in La Chorrera that "we are going to combat acts of corruption and the full weight of the law will fall on those in charge," in making reference to the growing scandal over mishandling of the Fund for Fairness and Quality in Education (FECE) in the district of San Miguelito. Torrijos defended the use of the FECE saying it is not possible to generalize and that all of the fund was misused because all school directors are not corrupt. He added that in the case of San Miguelito, the case will proceed without hiding anything.

Panama America - Projects that were never built, bank accounts that were never opened, and complaints from parents about overpricing form part of the most recent irregularities being discovered in the Fund for Fairness and Quality of Education (FECE) in San Miguelito. About ten schools denounced to the Panama America that in 2007 some projects never got off of the drawing board, because they still have not been built, although the money has been paid. In addition 38 bank accounts were not opened although they were designated in the budget. And as if that was not enough parents are complaining about the high cost being paid for building materials for FECE projects. (more)

By Rafael Luna Noguera and José Otero for La Prensa - The arrest of two Panamanians suspected of being drug traffickers exposed a network of corruption with possible ramifications in the Public Ministry, the National Police, Customs, and other elements of state security, through which it moved at least a ton of cocaine in recent months. Official sources informed La Prensa that, after the discovery of the network, authorities have already arrested 19 people, of those 11 are government officials and eight are supposed drug traffickers, including the two bosses mentioned earlier. Panamanian authorities are coordinating with their counterparts in Costa Rica because the group has ties to at least two organized crime networks there. This criminal group is also tied to robberies of drugs and firearms from rival gangs, in addition to several homicides. It is suspected there are also local businessmen involved in this criminal network.

La Critica - Rodolfo "Charro" Espino had a supposed nervous breakdown which prevented him from appearing before the Prosecutor of the First Circuit of Chorrera, where he has been summoned to make a statement in a case involving environmental damages. According to the prosecuting attorney, Victor Martinez, "Charro" Espino, the uncle of Panamanian President Martin Torrijos, has not attended or appeared to respond to any of the citations before the office of the public prosecutor. Espino was cited to declare as early as July 2007 in the offices of the Public Prosecutor of the First Circuit of Chorrera, in a case that was admitted against him, imposed for the commission of supposed crimes against the environment, with regards to the cutting of mangroves in Chame.

By Zonia de Smith., Jovanka Guardia and Eliana Morales Gil for La Prensa - Nepotism and political connections played a part in the corruption case involving the Fairness and Quality in Education Fund (FECE) in San Miguelito. Political connections within the Partido Revolucionario Democratico tie those involved in the embezzlement of $892,000 and their superiors together. Betzy Guzmán, one of the protagonists in the case and until four days ago the Regional Director of Education in San Miguelito, has good connections in the party and according to one party member (who asked to remain anonymous) it was her political ties and her militant stance in the PRD that put her in the position. (more)

By Boris Gómez for La Prensa - Five public employees of the Ministry of Education (Meduca) in Chiriquí and two contractors are tied to the supposed embezzlement of about $10,000 dollars that was supposed to be used to turn a remote thatched-roofed school into a two classroom establishment in the community of Boca de Macho in the Ngöbe Buglé community. The information rests in a report prepared by two Meduca auditors, Miguel De Mera and Rafael Gomez. The report says that the work, which was supposed to cost $9,990 dollars, ended up costing $10,287 and that the money was paid without the work having been finished. (more)

Panama America - Panama's Auxiliary Prosecutor is interrogating Mitizi Miranda and Teodoro Castillo who are suspected of being involved in the theft of $892,000 of public funds. Kenia Porcell, who is in charge of the office of the office of the Auxiliary Prosecutor, formally charged them with falsification, the theft of public funds under their administration, and illicit association to break the law. Both requested bail. It is known that Castillo cashed several FECE checks.

By José González Pinilla for La Prensa - Mitzi Miranda, an employee of the Fund for Equity and Quality in Education (FECE) of the San Miguelito region, and Teodoro Castillo, a professor, were arrested by the Auxiliary Prosecutor's office to be investigated for irregularities in the handling of $892,000 dollars. This according to the Minister of Education Belgis Castro yesterday in a press conference. Joaquina Gallardo, the niece of the Vice Minister of Eduction Zonia Gallardo de Smith, is also involved in the scandal, and is being sought by the prosecutor to be interrogated. Miranda and Gallardo were fired and Castillo has been separated from his position while the investigations are underway. (more)

By Santiago Cumbrera for the Panama America - The main person implicated is the niece of the former Comptroller of Panama Alvin Weeden. The former Consul for Panama in Indonesia presumably received more than $73,000 without having worked. In recent weeks the Comptroller's Office has denounced several similar cases. Virginia Weeden de Acosta, the former Consulate of Panama in Jakarta, Indonesia, will have to respond before the Public Ministry and the Direction of Patrimonial Responsibility (DRP) for alleged economic damages of $390,388.10 she caused to the state while holding this position between 1999 and 2004. (more)

Editorial - La Estrella - Recent signals regarding the lack of judicial security in Panama from the Embassy of the United States are worrisome. And the problem is even bigger, because information we have indicates the ambassadors from the countries with the greatest amount of investment in Panama share a similar concern. Our country has managed in recent years to attract a great amount of foreign investment. Given our small population, these investors are not being attracted by our internal market but rather for the services we offer. This advantage, nevertheless, can be lost if we can not guarantee a transparent legal system and a just solution when problems arise. On that route, our authorities should establish effective mechanisms to combat corruption and the promotion of transparency, because to not do so would be to condemn our own progress. We must demonstrate that we are a serious country, not only so that foreigners trust us, but because this should always be our commitment. What does it cost us to work in that direction?

By DON WINNER for Panama-Guide.com - And finally, here's the television news report from TVN 2 in Panama City that was broadcast on 30 May 2007. So, I got the time time right. First, El Siglo, followed by TVN 2, followed by the Panama America, all in the last week of May 2007. In any case, you can see the TVN 2 video below. As you can see in the video, Jean Morales is obviously a hardened criminal, out to steal all of Cirilo McSween's money. Shame on her. At least now I know what she looks like. Also in the video is the legal representative for the No Kribo region Clemente Jimenez.

Copyright 2007 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

By DON WINNER for Panama-Guide.com - OK, I'm trying to get the time-line down. So far it looks like "El Siglo" published their article about the Cirilo McSween land-grab on Cayo de Agua island in Bocas del Toro first, on 25 May 2007. Then TVN Channel 2 followed up, and this article which appeared in the "Panama America" newspaper is basically written based on the TNV-2 television report. There's really nothing in this article, written by Ohigginis Arcia and originally published on 31 May 2007, that I have not covered elsewhere. But in any case I include it here just to make sure it gets into the stack. (more)

By Carlos Barletta for La Prensa - Timothy Lattimer, the economic adviser of the US embassy in Panama said yesterday that American investors are concerned about the judicial system and respect for laws in Panama, especially after the election of Pedro Miguel Gonzalez as the President of the National Assembly. He added the United States will not request the resignation of González explicitly, and even if Gonzalez resigned his post the image of Panama in the eyes of international investors has already been "tainted."

By DON WINNER for Panama-Guide.com - Yesterday in Bocas del Toro I hooked up with Dario Vanhorne to see what was happening on Wild Cane Key. Remember that the National "Catastro" (Tax) Office has issued Resolution #350 ordering local government officials to evict everyone from Wild Cane Key, to remove any and all structures on the island, and to prevent anyone from entering the island. To date local officials in Bocas del Toro have not complied with that national order. In my meeting with Alma Montenegro de Fletcher on 11 October 2007 she told me local officials had assured her they were in compliance with the order from Catastro. To be clear (and, this is the clarification part) Lic. Alma Montenegro de Fletcher was relaying to me what she had been told by local officials. She herself did not know the status based on her own observations, but rather she was just telling me what she had been told. (more)

By Flor Mirachi Angel for La Prensa - The President of Panama's National Assembly Pedro Miguel González, considered by the United States "a problem" for the ratification of the bilateral free trade agreement, reacted to statements made by US Ambassador William Eaton with regards to the Panamanian justice system. Gonzalez said "the American system also has its deficiencies" and that "I do not know to what extent the ambassador would dare to make those declarations." On Monday before an assembled group of businessmen Eaton said when international investors are victims of judicial processes that are weak and not transparent then the image of entire country is deteriorated. Domingo Latorraca said the message of Eaton was about the importance of having an efficient and transparent judicial system.

Text and Photo By DON WINNER for Panama-Guide.com - Bocas... What to do about Rights of Possession (ROP) property in Bocas del Toro? Yesterday I made initial contact with a key player in the Panamanian anti-corruption scene. Alma Montenegro de Fletcher is the Executive Secretary of the National Council of Transparency Against Corruption (CNTCC). The CNTCC is a part of the Executive branch of the Panamanian national government. The have a "gob.pa" website which you can see here. It is the job of the CNTCC to serve as a council and adviser to President Torrijos on issues pertaining to corruption anywhere throughout the country (including Bocas del Toro.) Alma Montenegro de Fletcher has direct access to President Torrijos and administratively falls under the Minister of the Presidency. (more)

By Leonardo Flores for La Prensa - All three branches of the Panamanian government are perceived as being highly corrupt, according to a survey conducted by Dichter & Neira Latin Research Network for La Prensa. The poll was taken between 14 - 16 September 2007, fifteen days after the administration of Martin Torrijos celebrated their third year in office. The survey, which will be published tomorrow in the Pulse of the Nation supplement, shows that most of the 1,238 people interviewed rank governmental corruption as either a four or five. A 1 to 5 scale was used, in which zero means no corruption at all and a 5 means there is much corruption. The National Assembly ranked worst at 71% 4's and 5's, followed by the Supreme Court (65.4%) and the Executive branch (58.6%). In the past three years attention has been focused on the National Assembly over the privileges of the deputies; the Supreme Court for controversial decisions, and the Executive branch for failing to follow through on campaign promises, particularly in the area of public security.

By Gustavo A. Aparicio O. y Ereida Prieto-Barreiro for the Panama America - Although opposition lawmakers have not expressed their disapproval to the possible reestablishment of the circuit funds, leaders from the main opposition parties expressed their rejection to plan out of fears that State funds will be used for political purposes. Guillermo Ford, President of the Patriotic Union Party, said his political experience indicates that these "circuit funds" often are not spent correctly, which is why he considers that to give funds to the Assembly is not advisable at the moment. The President of the Panameñista Party Juan Carlos Varela said that the Assembly should be more concerned with the approval of good laws which is its function. (more)

By José Otero for La Prensa - Panama's Solicitor General Ana Matilde Gomez sent a request to remove the Second Anti-Corruption Prosecutor Maribel Cornejo from her position as part of the formal criminal complaint filed by the Justices of the Supreme Court, accusing Cornejo of investigated the judges without having the legal right to do so. Sources within the Public Ministry say the request is included in the complaint filed on the 20th of June by the President of the Supreme Court Graciela Dixon. Cornejo will remain in her position until the Supreme Court justices of the Criminal Bench decide in the matter. The Criminal Bench of the Supreme Court is comprised of justices Dixon, Aníbal Salas and Esmeralda de Troitiño. Salas recused himself, saying he could not decide in the controversial incident involving the prosecutor.

Panama, Aug 20 (Prensa Latina) Numerous Panamanian authorities will converse during activities of the Nautipesca Company, considered a screen for Colombian Pablo Rayo Montaño's money laundering, Panama-America daily published on its front page. The newspaper reported that it obtained exclusive statements by former soccer player Freddy Rincon, in the investigation about him in Brazil, where he is detained, pending an extradition request by Panama. Rincon rejected, before the Third Court of Justice of Sao Paulo, the charges pressed against him in Panama for money laundering. Rincon gained notoriety the past week, when Colombian media quoted his statements before the Brazilian justice, saying that then president Mireya Moscoso personally recommended to invest in Nautipesca, the daily recalled. Panam-America said Rincon's wife Priscilla Reyes told Colombian RCN radio station she was able to observe that Rayo Montaño led a businessman s life in Panama, kept contact with authorities, and also had a Panamanian identity card.

By Gloria Leiva Gaitán for El Siglo - At 10:30 am yesterday morning, Panama's Second Anti-Corruption Prosecutor Maribel Cornejo appeared at the office of the Attorney General to make her official statement in the investigation into a criminal complaint alleging abuse of authority filed by the President of the Supreme Court. Her lawyer, Carlos Muñoz Pope, said there was no abuse of power because Cornejo was not investigating the decision of the Supreme Court, and that she was only investigating the supposed acts that tie ex-Supreme Court Magistrate César Pereira Burgos to acts that occurred in 2004, but the investigation started in 2006, when Burgos was already off of the Supreme Court and the case passed to ordinary jurisdiction. (more)