National newsbriefs
RODMAN EXPANDS
The Cabinet authorized the Ministry of Finance (MEF) to celebrate by exceptional procedure with Amador Marina, a contract for leasing, investment and development of seven hectares in Amador to build a marina. The President and his ministers also endorsed for the firm Serviamérica Corp., a lease and investment, with first option, of a site of 12 hectares in Rodman for a multimodal port.
CUSTOMS SHAKEUP
The replacement of the director of the National Customs Authority (ANA), Virna Cecilia Luque Ferro, became a reality. George Carney Aleman, who was the deputy director of this entity, became the new head of the ANA. This was established by Executive Decree 95 of February 26, which was published in the Official Gazette. This executive order is signed by President Ricardo Martinelli and the Minister of Economy and Finance, Frank De Lima. The former director of ANA held the position since November 20, 2012.
VENEZUELA DEBT GRIM
The Venezuelan economy is plunging amid the political crisis. For the Colon Free Zone (CFZ), Venezuela is the target for traders and banks to collect what has gone bad. As yet there is no solution to the conflict in sight. The Venezuelan political crisis also touched Panama. Presidents Nicolas Maduro, of Venezuela and Ricardo Martinelli, of Panama, recalled their ambassadors for consultations after Caracas accused the Panamanian government of trying to meddle in its internal affairs. Panama’s Foreign Minister, Francisco Alvarez De Soto, denied that his country “has involved itself in political interference” and said it has simply called for a “respectful” dialogue and understanding in Venezuela”. There is talk about billions of dollars owed by Venezuelan merchants to the Free Zone businessmen, who are desperate to enter other markets to offset this situation that has affected them for the past year and a half.
CANAL WORK ON AGAIN
The consortium Grupo Unidos por el Canal (GUPC) resumed work on the third set of locks of the Panama Canal, paralyzed because of the lack of company funds. The announcement was made by the Panama Canal Authority (ACP), which said the consortium “accepted the reiterated call of the ACP.” ACP announcet that it was closing the talks with GUPC that led to a conceptual agreement subject to a documentation, review and final signatures by the parties. The conceptual agreement falls within the terms of the contract. GUPC claims must remain serviced in accordance with the contractual resolution mechanisms. The contract price is maintained, i.e., it is not modified by this agreement.
TALKS IN COLOMBIA
Panama’s Minister of Commerce and Industry (MICI), Ricardo Quijano, traveled to Colombia to meet with his counterpart, Santiago Rojas, and address issues related to the Free Trade Agreement (FTA) signed in September. Among the issues addressed by Rojas and Quijano are tariffs, certificates of origin and the process for the entry into force of the FTA. Panama and Colombia signed the FTA on September 20, 2013, after four years of negotiations. Of special interest to Panama is the controversy over tariffs on shoes and textiles that country has enacted and that has led the disagreement to the WTO.
FOOD PRICE SECRECY
Organizations representing consumers reacted to the failure to publish monthly reports of the Basic Family Food Basket (CBA). The groups that have experienced increased food prices also referred to the $68.86 increase in four years. The president of the Association of Ethical Consumption, Jakarta Rios, was the first to comment. “It is a serious offense because these reports are public. We are in the dark ages,” she said. In January this year, eight out of ten Panamanians surveyed by Ipsos felt that the price of food is the problem that most concerned them. Just months before the end of the term of President Ricardo Martinelli, strategies such as the multi-million dollar project called the Cold Chain, do not seem to have had any effect.
CAPTURED MARKET
The sugar mill Central Azucarero La Victoria, a family business founded by President Ricardo Martinelli Berrocal – whose board is chaired by his brother, Mario Martinelli – is preparing to build a plant for production of ethanol fuel. This month an environmental impact study was given to the National Environmental Authority for the infrastructure in the province of Veraguas. It is the fuel additive that, by law, the Executive promoted for mandatory use.
FAMILY AFFAIR
President Ricardo Martinelli appointed a member of his family as president of the Cold Chain. The choice was Carlos Orillac Arias. Orillac sits on the board of four companies with the Martinelli family. These are: Orillamar, SA, Panama Resources, SA, Multiple Resources, SA and Bonding and Reafianzadora Iberoamericana, SA The common link in all companies is the uncle of President Ricardo Martinelli, Enrique Martinelli Della Togna.