President Varela's messianic message of propriety and transparency in government, which formed the backbone of his election campaign, rings ever hollower by the day. Indeed, the President has been seen to fail the tests of transparency, corruption, nepotism, dubious director awards of state contracts to preferred companies, as well as the promotion of political turncoats in the National Assembly.
The case of a select group of companies that have benefited from the direct award of multiple procurement contracts with the state is a case in point. One glaring example is that of Tocumen S.A., whose general manager, Joseph Fidanque III, has been seen to favour the companies of his own business partners with direct procurement awards valued in excess of $20m.
Other institutions of the state have not been immune to this unfortunate custom. Across the Health, Education and Housing ministries, the questionable practice of contract fragmentation has been in full swing.
The Health Ministry, for example, has seen the award of 4 direct contracts in a single day, collectively worth $3.8 million, to Pumper S.A for the collection of hospital refuse. For his part, the Housing Ministry repeatedly favored Airco S.A., a company owned by Pedro "Peter" Vallarino, a close friend of a President, with direct purchases made by the National Assistance Fund (PAN) under the banner of the 'Roofs of Hope' (Techos de Esperanza) program.
The government has staunchly defended such actions, arguing that they have been taken in the interests of the population. Regardless, such practices have been the subject of complaints with the country’s Transparency Authority (Antai). The Public Ministry has also launched an investigation into some of these matters. The investigation's progress and details remain unknown.
However, direct procurement contracts and lack of transparency and not the only sins of the Varela administration. Nepotism also figures high on the list. According to experts, the government of Juan Carlos Varela is the one that has seen the highest number of family members appointed to government positions.
In the Electoral Tribunal (TE) alone, two magistrates and one ex magistrate had managed to name an astonishing 22 family members to posts within the institution, just amongst themselves. Similarly, 14 members of President Varela's extended family have been named to top government positions as well as overseas embassies.
The administration of Juan Carlos Varela has also been notable for its attempt to increase the centralization of power. The president has been seen to prevaricate over other organs of the state, whose independence he had vowed to protect during his election campaign.
Such is the case of the national assembly, where the government has been buying the conscience of more than one opposition party member from the ranks of the PRD and CD parties. It is telling that eight out of ten projects approved by the National Assembly have sailed directly from the executive branch.
All this has not gone unnoticed by the population, who views the blatant hypocrisy of the Varela administration with increased unease.
For one, Alma Cortes, acting president of Cambio Democratico (CD) party, has demanded that President Varela launch the talks of constitutional reform that formed key part of his electoral manifesto. President Varela has excused himself by arguing that “the political context is not opportune” for such talks.
Former presidential spokesperson, Luis Eduardo Camacho, added his voice to the criticism of Varela's unfulfilled electoral promises. CD party member Dinoska Montalvo accused the president
and his administration of “acting hypocritically and with no sense of shame”, while Jose Luis Vargas argued that 'President Varela is taking us all for a bunch of fools'.
A master of hypocrisy
President Juan Carlos Varela will soon celebrate two years in power, while also being reminded that he has to date failed to fulfill at least 20 of his electoral promises.
One of the then-candidate Varela’s key promises was a reduction of $58 a month in expenditure on basic foodstuff for the average Panamanian. Regrettably, though, Panamanians have been witnessing an increasing the cost of basic necessities. Such food inflation, coupled with a sharp deceleration in economic activity, has led to many Panamanians struggling to make ends meet. It
has also sent President Varela's popularity plummeting, across the social spectrum. Instead of fostering economic growth, the Varela administration has focused on judicial persecution of previous administration officials.
In fact, many even question the viability of many a of the electoral campaign promises the president made. One such promise walls to promote food safety for Panamanians. Fast forward two years, and today the agricultural sector in Panama is dying an agonizing death. According to Maribel Cuervo de Paredes, a local lawyer, “Varela’s empty promises had the only purpose of buying votes”.
