Concerns are mounting over the repercussions of the latest in a series of scandals that have hit the country in recent weeks. According to multiple sources, a strong institutional response is sorely needed in order to avoid a deepening crisis in the face of such challenges. Maribel Gordón, an economist, is not in the least surprised by the recent revelations.
“We have been governed all along by a mafia of powerful, well-connected people who have made quick, easy fortunes in murky businesses” she argues, adding that “these businesses have affected not only the image of our country, but also the rights of all its citizens.” As always, it will be the common people who will pay the price of the unmasking of these “illicit gains”. Ms. Gordon went on to add that “these scandals don’t happen by coincidence: they are born out of the backroom deals over here, but they are being unearthed abroad”.
Juan Jovane, a local economist and professor, echoes the notion that these scandals will have serious economic repercussions nationally. One obvious risk is the mounting fear that bank deposits held in Panama may no longer be safe. Mr. Jovane also spoke of the multiplier effect that the possible loss of up to 6000 jobs in the companies affected will have on economic activity. “When people lose their jobs, they also tend to reduce dramatically their spending” he explained, criticizing the government’s ineptitude in the face of such challenges.
According to Mr. Jovane, the protestations of innocence of Mr. Abdul Waked are of little or no use at this point. Whether Mr. Waked manages to prove that he indeed has no business relation with his disgraced nephew, who was arrested in Colombia earlier this week, the impact of this scandal on the economy will not dissipate easily.
For his part, Mauro Zuñiga, a politician and writer, insists on the importance of a thorough investigation into Mr. Waked’s activities, given the seriousness of the charges, and the serious damage they have caused to the image of the country. “The public ministry has to act in a resolute manner; should Mr. Waked be found guilty of the charges attributed to him, he must be made an example of.” Mr. Zuñiga went on to add that the U.S. authorities are unlikely to have kicked up such a fuss without having solid evidence to back up their actions.
Some have even begun to wonder if someone has an interest in destroying the reputation of the country as a whole. Enrique Montenegro, of the Anti-Corruption Front, is concerned that further revelations from the Panama Papers publication due this Monday may end up sinking the economy altogether.Many young people view their country as increasingly lacking a north, both morally and ethically. Activist Freddy Pitti advocates a constituent assembly to take advantage of the current challenges as an opportunity for social renewal for the whole nation.
Mossack vs. Waked
The swiftness with whom the Public Ministry has been seen to act upon news of the U.S. treasury department’s announcement on the Waked Group has not gone unnoticed. It has yet again awakened criticism of the embarrassing and unjustifiable slowness with which the Panamanian authorities have tackled another recent scandal: that of Mossack Fonseca.
Multiple sources have in fact questioned the reason behind the 10 day delay shown by the Public Ministry in investigating the law firm belonging to Ramón Fonseca Mora. Mr. Fonseca Mora was until recently ministerial adviser to President Varela as well as acting president of the ruling Panameñista Party. According to Ms. Gordon and Mr. Jovane, Panamanians justice shows all signs of being partial and selective. “The difference in the speed of action is that the very least striking: in the case of Mossack Fonseca, 11 days went by; in the case of Waked, barely half an hour went by. It was hard not to notice the difference” said Mr. Jovane. It would appear that in the case of Waked, the Public Ministry fully intends to do its job.
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Restrictions kick into action
Multiple companies belonging to the Waked group are beginning to show some strain. As the U.S. authorities launch an investigation into supposed money-laundering and drug-trafficking activities, a full 68 companies belonging to the group have seen their bank accounts frozen.
The first signs of the changed circumstances in which they operate came from pictures shared by their own clients. One of the companies, Felix B. Maduro, recently acquired by the Waked Group, displayed a banner at the entrance of its premises, apologizing for being unable to accept credit card payments. As U.S. companies, both visa and MasterCard are indeed unable to transact with Waked related companies: doing so would otherwise expose them to sanctions by the U.S. Treasury Department. Social networks also shared information concerning alleged contract terminations between local banks and Waked-owned Grupo Wisa and La Riviera. The point-of-sale (POS) terminals used by these retail entities for debit card operations were also reportedly withdrawn from the premises.
