Contralor Dani Kuzniecky alerta de posibles prácticas de corrupción

ID DOC: 49303

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FECHA: 0000-00-00 00:00:00

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FUENTE: Embassy Panama

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PRIVACIDAD: CONFIDENTIAL

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REFERENCIA: This record is a partial extract of the original cable. The full text of the original cable is not available.

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C O N F I D E N T I A L PANAMA 000040



SIPDIS



SIPDIS



DEPARTMENT FOR WHA/CEN

SOUTHCOM ALSO FOR POLAD



E.O. 12958: DECL: 01/06/2016

TAGS: PGOV, PREL, BEXP, PM

SUBJECT: PANAMANIAN COMPTROLLER DANI KUZNIECKY ALERT TO

POSSIBLE CORRUPT PRACTICES BUT CLAIMS TORRIJOS SEES HIM AS

A "PEST"





Classified By: DEPUTY CHIEF OF MISSION LUIS ARREAGA FOR REASONS 1.4 (B)

AND (D)



SUMMARY

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1. (C) Comptroller General Dani Kuzniecky recently met with

Emboff to discuss questionable public bidding cases that had

attracted his negative attention. They included the Tocumen

airport duty free zone (which involved an American company),

the unrelated Pacific "mega-port" project involving a

different American company, and the Panama City Mayor's plan

to acquire an expensive older building for a new City Hall.

Kuzniecky claims that although he and President Torrijos have

a "love-hate" relationship, Torrijos has asked him to stay

on, although he does give him consistent support. End

Summary.



Bidding Documents "Tailor-Made"?

--------------------------------

2. (C) Meeting Emboff for coffee late last year, Comptroller

Kuzniecky acknowledged that he had acted to cancel the first

bidding process for the Tocumen duty-free zone, due to

credible complaints from two Panamanian business groups (the

Mottas and the Wakeds), that the bidding documents had been

custom-made for FALIC (sic -- supposedly a U.S. company).

(Comment: Several people familiar with the specs commented to

Emboffs that only one firm in the world -- FALIC - would have

qualified. End Comment.) Kuzniecky added that after calling

in Tocumen Airport General Manager Carlos Garcia, Garcia

denied that the bidding specifications favored FALIC and

denied that he was involved with FALIC in any way. But,

Kuzniecky added, "Garcia does not know that I have an

informant in his office." (Comment: Other sources told

Emboff that close Torrijos associate Felix "Pille8 ("P-J")

Gonzalez and notorious lawyer Hector Infante, a close Perez

Balladares associate, are involved with FALIC. End Comment.)





Asks For Garcia's Dismissal

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3. (C) Kuzniecky said, in his opinion, several bid

specifications favored FALIC, adding that he pushed Minister

of the Presidency Ubaldino Real and President Torrijos to

delay the bid opening, telling them that he would not approve

the bid documents. Torrijos was supportive but Uba (Real)

hesitated. Kuzniecky said he went further, demanding General

Manager Garcia's dismissal, but added that Garcia "is well

protected in the PRD.8 (Comment: Garcia has a shady

reputation as former Customs Director under President Perez

Balladares and as National Assembly Administrative Director.

End Comment.)



Who Works For Free?

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4. (C) Emboff explained Kuzniecky that FALIC had recently

sought USG advocacy through the Department of Commerce in

Washington, D.C. and that it had certified its adherence to

the Foreign Corrupt Practices Act.

Emboff added that the Embassy was not lobbying in favor of

any company. (Note: Subsequently and at Commerce's request,

the Embassy sent a letter to the GOP raising our concern

about possible last-minute changes in the bidding specs that

could have been prejudicial to a U.S. firm. That prompted a

flurry of meetings and discussions with GOP officials that

ultimately led to a decision by the Airport Authority to

extend the bidding process to enable it to relaunch the

bidding process in a more open, transparent manner. Although

FALIC's local competitors raised various allegations about

the firm, their evidence was circumstantial. End Note.)

Kuzniecky would only say that he has no evidence on "Pille"

and Garcia but finds it hard to believe that they are acting

as intermediaries and boosting FALIC for free. Kuzniecky

added that he would not sign a document "if there is

something fishy,8 even for an American company. (Comment:

The U.S.-educated Kuzniecky is openly pro-American. End

Comment.)



Another "Wrong Signal"?





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5. (C) Kuzniecky claimed that another case involving an

American company &has already sent a wrong signal.8

According to Kuzniecky, President Torrijos invited him

several weeks ago to attend a meeting at the Palace. When he

arrived, Torrijos's cousin Hugo Torrijos (former Maritime

Administration chief) and two American businessmen were

there. The topic under discussion was the upcoming bidding

for the Pacific "mega" port. Kuzniecky claimed that one of

the Americans then claimed that his company would

"pre-qualify8 in the January 2006 bidding process. At that

point, Kuzniecky said he interrupted him and bluntly asked

how he knew that his company would &pre-qualify8 when the

bidding documents were not even ready. There was an awkward

silence in the room, Kuzniecky said. Finally, Hugo Torrijos

offered a "lame" explanation. Kuzniecky would not volunteer

the name of the company.



"Illegal" ARI Deal

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6. (C) Kuzniecky also commented on a recent controversy

concerning the proposed sale of 30 hectares by (the

now-defunct) ARI. Kuzniecky labeled the deal "another case

of corruption." ARI cannot sell that piece of land,

Kuzniecky stated, which was bought for minerals in the

sub-soil. By law, the GOP can only lease it through a

concession contract but never sell it. Kuzniecky said that

he has not been able to find out the name of the buyer,

adding that he found out about the case only because the

Contraloria has a representative who attends the ARI board

meetings.



New City Hall

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7. (C) Another case that Kuzniecky discussed involves Panama

City Mayor (and 2009 presidential hopeful) Juan Carlos

Navarro. Again admitting that he has no evidence, still,

Kuzniecky said, "things don,t make sense." Kuzniecky is

incredulous that Navarro wants to buy a 40-year old building

(just a few blocks from our Embassy) for $15 million to use

as a new City hall. "Why in the world would he pay $15

million for such an old building when he could build a new

one for less money?" Kuzniecky asked. Kuzniecky said he has

the power not to approve the contract but he admitted that he

needs to do more legal research.



"Love-Hate" With Torrijos

-------------------------

8. (C) Later, in a one-on-one meeting with President

Torrijos, Kuzniecky claims that he told Torrijos that he is

willing to resign if he asks him to. Kuzniecky says that

Torrijos and he have a love-hate relationship. &We like

each other but I have become a pest," he explains, adding

that Torrijos gets 10 calls a day from legislators,

ministers, and local representatives to complain about him.

Kuzniecky said that Torrijos asked him not to go, that he

wants Kuzniecky to keep him informed about who is doing what.

"But what," Kuzniecky asked rhetorically, "is the point if I

tell him and he doesn,t do anything?"



EATON