FECHA: 0000-00-00 00:00:00
FUENTE: Embassy Panama
PRIVACIDAD: CONFIDENTIAL
REFERENCIA: VZCZCXYZ0001RR RUEHWEBDE RUEHZP #1287/01 1812233ZNR UUUUU ZZH (CCY ADEC9F58 MSI8751-695)R 302233Z JUN 06 ZDSFM AMEMBASSY PANAMATO RUEHC/SECSTATE WASHDC 8478INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVERUEHBO/AMEMBASSY BOGOTA 2350RUEHGV/USMISSION G
C O N F I D E N T I A L PANAMA 001286
SIPDIS
SIPDIS
E.O. 12958: DECL: 06/29/2015
TAGS: ECON, EAIR, FAA
SUBJECT: PANAMA'S CIVIL AVIATION DIRECTOR FORCED TO RESIGN
REF: DEPT FOR WHA/SCHIFFER
Classified By: AMB. Eaton for reasons 1.4(b) and (d).
1. (C) SUMMARY: Panama's Civil Aviation Authority (AAC)
Director Tomas Paredes told EconOff that President Torrijos
requested his resignation on June 26. On June 30, Torrijos
nominated Eustacio Fabrega Lopez as the new AAC Director and
sent the nomination to the National Assembly for approval.
Paredes alleges his removal was due to his support of an
Attorney General investigation into alleged corruption by his
Subdirector Nelly Simeon. Paredes further alleges Simeon,s
staffing decisions at the AAC are intended to replace non-
Revolutionary Democratic Party (PRD) employees with PRD party
members. Without Paredes, the USG is losing a cooperative
high-level official in its interdiction efforts and in
ensuring a high level of safety in Panamanian aviation. END
SUMMARY.
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The New AAC Director
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2. (C) Fabrega was the AAC Director from 1994 to 1999 under
the Balladares administration. Fabrega is an alleged old
hunting companion of Manuel Noriega. The AAC Coordinator for
Operational Security told EconOff he worked with Fabrega and
he was an excellent director. The Coordinator told EconOff
that Fabrega's nomination should be approved by the National
Assembly "in a few days".
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Alleged Motives
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3. (C) Paredes told EconOff that AAC Subdirector Nelly
Simeon has been trying to engineer his departure since she
took office in 2004. Paredes believes his removal is linked
to Simeon's pending corruption investigation by the GoP's
Attorney General's Office. Simeon is under investigation for
misuse of government property and personnel. In allegations
filed with the Attorney General's office, Simeon is accused
of operating an import/export business, Marketing Concepts
Corporation (MCC), without submission of the requisite duties
or paperwork. The allegations further state that GoP
personnel and vehicles were used to transport the products.
Paredes told EconOff that the Director of the Customs
Department personally stopped a search of MCC's offices. As
a result of the investigation, Paredes was required to
respond to the Attorney General's office inquiries and
corroborated many of the allegations.
4. (C) Paredes further alleges that Simeon has been using her
position to fire non-PRD employees and fill them with PRD
members. Paredes claims Simeon is part of Torrijos' inner
circle and has placed many of her friends and PRD loyalists
in positions which control access and information flow to key
ministers and Torrijos. Paredes believes Simeon was working
to pick his successor and has control of the AAC.
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Simeon, Sampo and the DEA
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5. (C) Paredes alleges Simeon traveled to Brazil with Mario
Sampo to solicit private investments for mining projects in
Panama. Sampo is a Brazilian businessman who has previously
been under indictment for bank fraud in Panama. Paredes
alleges that while in Brazil Simeon held herself out to
investors as GoP Vice Minister of Transportation and said all
mining activities in Panama had to go through her office.
Paredes related an alleged incident where Simeon personally
interceded to prevent AAC security officials from detaining
an airplane owned by Sampo which was not properly registered.
Note: DEA in Panama has previously been in contact with
Paredes regarding Simeon,s alleged involvement with Sampo.
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Latin American Civil Aviation Commission
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6. (C) In November 2006, Panama,s AAC Director becomes the
president of the Latin American Civil Aviation Commission for
the next three years.
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Comment
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7. (C) The USG is losing a cooperative high-level aviation
official in its interdiction efforts and in ensuring a high
level of safety in Panamanian aviation. If Paredes,
allegations regarding Simeon are correct, Simeon joins a
growing list of high-level PRD officials reported to Embassy
officials engaging in illicit activity and using their GOP
positions for personal gain.
EATON
