Varela, the face of the family business elsewhere

During some of his travels, President Juan Carlos Varela has been depicted as a liquor promoter that takes the label of his business beyond national borders, despite his role as President.

In one of his visits to Germany, President Varela refused to be interviewed by the German newspaper that was the first to publish the Panama Papers scandal: Süddeutsche Zeitung (SZ), but instead visited the Latin America Club Pavilion (LAV) where one of the products of their family business, Varela Hermanos S.A., Ron Abuelo, was being displayed, a fact that was noticed by journalists.

This fact not only leaked out on his way through Germany, but also in other regions, such as Italy, Cuba and Spain, which his family business has come to light while serving as Foreign Affairs Minister of the Republic during the previous Government and now as President of the Republic of Panama.

Just last week, Varela made a private trip to the city of Cardiff, in Wales, Great Britain, to promote his liquor brands.

The Ministry of Communication of the Presidency confirmed that it was a private invitation, and which, it was later known, had the objective of watching the final match of the European Champions’ Cup (Uefa Champions League).

The President was invited to watch the final of the European Champions League by one of the sponsors, all expenses paid.

This resulted in some sectors invoking the anti-corruption tsarina Angélica Maytín to step in and raise a report for the National Assembly for an investigation into the fact; i.e., violation of the code of ethics of public servants, but she refused and said that it is the exclusive competence of the Assembly.

Maytín advocated the incorporation of an adaptation to register the invitations that a President receives to the code of ethics of officials, which would be seen as a direct benefit given by a private company.

Although prior to this latest departure, the President has taken his brother Luis Jose Varela Jr., who is Vice President and Manager of liquor company Varela Hermanos S.A. with him

In September 2015, Varela took his brother through an official mission, while contacts were established for the expansion of a new business.

A year earlier, Varela had traveled to Spain, where he visited the land of his grandfather, Galicia, and took the opportunity to see the roots of the business.

But from the day he took on the position of Foreign Minister and Vice President of the Republic, Varela had already been accused of using his post to promote the rum exported by his family business.

While serving as Foreign Minister (between 2009 and 2011), the promotion of Ron Abuelo, liquor logo of the family business, was being denounced since it was being marketed in the same place where the Panama consulate operated in Turin, Italy.

The information was confirmed in 2012 to La Prensa newspaper by an official of the Panamanian Embassy, who said that this relation was effective for the functions that the entity performed in trying to promote Panamanian exportable products to other latitudes.

He would still use institutions such as the Tourism Authority of Panama, (ATP) which last year released a video where Varela promoted his family ranch. In images that are projected from the outside the Hacienda San Isidro, in Pesé, province of Herrera, appeared place where Varela Hermanos distills the products they trade.

It is economist Juan Jované’s view that it would be a serious situation because using the position of President, or whatever this may mean, for business purposes is out of the range of the power that is legally granted to a President.

"From the legal point of view, but above all the ethical one, there´s simply no justification, for the public power to be used for purposes of profit", he regretted.

At the same time, Marco Gandasegui, sociologist, noted that the Law already prohibits officials to engage in business while in their position and this is part of the complaints for scandals that are being investigated in Panama.