President‘s family busy dividing up high-ranking positions

  Nepotism reigns supreme in the current government, and the president’s own family is one of the starkest the examples of that. Since his election in 2014, at least 14 direct family members of President Varela have been appointed to ministries, embassies and high-level consultancies. According to sources, one of the principal means used by Varela family members to gain direct control over institutions such as Tocumen Airport as well as the education ministry, while attempting to eschew charges of nepotism, has been that of ad honorem consultancies. In the wake of the crisis that hit the education ministry as a result of a network of public officials charged with manipulating public tenders, Panama America has learned that the figure who nowadays maintains control over all key issues concerning the institution is Yolanda Eleta, who is sister-in- law of President Varela. Internal sources confirmed that it is she who presides over all important internal meetings at the education ministry, along with Franklin Rodriguez, who is the president's cousin. 'I cannot tell you what the official position of Ms. Eleta is at the ministry, but I can tell you that she exerts power over and above that of education minister Paredes', according to a source who spoke on condition of anonymity. For his part, Mr. Rodriguez is Ms Eleta's right-hand man, charged with implementing her will within the education ministry's engineering department, which handles all infrastructure investment. Another family member of President Varela, his cousin Carlos Rodriguez, was appointed to a $6,500- a-month advisory position to Tocumen SA, the state company that manages Panama’s principal airport as well as other airport terminals across the country. Mr. Rodriguez allegedly oversees all purchases and concessions at Tocumen S.A., including the public tender of the duty free concessions in Panama City’s new international terminal. Other public positions occupied by family members of President Varela include that of Eyda Varela de Chinchilla, deputy finance minister, as well as Miguel Mayo at the health ministry. Ms. Varela de Chinchilla became notorious at the beginning of the current administration for supporting a fuel tax, which she justified on the basis of low international oil prices. However, as the price of crude began to increase again, the government had to scrap the surcharge amongst popular revolt. For his part, Minister Mayo maintains a family relation with Jaime Lasso, who was at the centre of the scandal surrounding Don James and the Kobe and Korean embassy transactions, while Mr. Varela was foreign minister during the administration or Ricardo Martinelli. Two more cousins of President Varela occupy important positions at foreign embassies. Ms. Ilka Bares, is the $5,500-a- month ambassador to Portugal; and Ms. Gloria de La Torre, who is ambassador to France on a salary of $7,000. Similarly, Idaan could not escape the Varela family’s network: Julia Guardia was appointed as director of the institution on a salary of $10,500. President Varela also appointed family members as well as people with very close ties to his family's private business, Varela Hermanos SA, to key positions within the presidency. Marta de Varela was appointed to the Social Secretariat of the presidency on a salary of $6,000 a month, while Maria Calviño appears on the payroll as adviser also for $6,000. The president’s religious connections have also benefited from government appointments. Miguel Angel Esbri, a high-ranking Opus Dei official, was appointed as Secretary of the President's economic policy council on a salary of $6,000 a month. Mr. Esbri was put in charge of the “My School First” program. One of his first tasks was to force contractors enlisted by the previous administration, including Meco and Odebrecht, into donating schools and sporting centers to the new government.