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### Viewing cable 06PANAMA1371, NEW LAW BACKSLIDES ON ANTI‐CORRUPTION,

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PANAMA1371 | 2006-07-12 21:55 | 2011-06-01 07:30 | CONFIDENTIAL | Embassy Panama
Appears in these articles: http://especial.prensa.com/wikileaks/category/cables/

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    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHZP #1371/01 1932155
    ZNY CCCCC ZZH
    R 122155Z JUL 06
    FM AMEMBASSY PANAMA
    TO RUEHC/SECSTATE WASHDC 8548
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEAIIA/CIA WASHDC
    RHEFDIA/DIA WASHDC
    RHMFISS/JOINT STAFF WASHINGTON DC
    RUEKJCS/OSD WASHDC
    RHMFISS/CDR USSOUTHCOM MIAMI FL//J5/J2/POLAD//

` `

    C O N F I D E N T I A L PANAMA 001371
    SIPDIS
    SIPDIS
    DEPARTMENT FOR WHA/CEN
    SOUTHCOM ALSO FOR POLAD
    E.O. 12958: DECL: 07/11/2016
    TAGS: PREL PGOV PM
    SUBJECT: NEW LAW BACKSLIDES ON ANTI‐CORRUPTION,
    CONSTITUTIONAL REFORMS
    REF: 04 PANAMA 1963
    Classified By: AMBASSADOR WILLIAM EATON FOR REASONS 1.4 (B) AND (D)

    SUMMARY
    ‐‐‐‐‐‐‐

    ¶1. (C) In a move contrary to his anti‐corruption pledges,
    President Torrijos signed a law July 5 restoring some of the
    legislative immunities taken away by Panama's 2005
    constitutional reforms. Attorney General Gomez may challenge
    the constitutionality of the new Law 25. One Supreme Court
    justice told us privately that he believes the law is
    unconstitutional, but it is doubtful that his view would
    ultimately prevail. The law deals a blow to Torrijos'
    anti‐corruption bona fides and raises serious questions about
    the future of Panama's anti‐corruption efforts. END SUMMARY.

    LAW 25: FOXES GUARDING THE HENHOUSE?
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

    ¶2. (SBU) Law 25 gives the nine‐member Supreme Court sole
    authority to investigate and prosecute members of the
    National Assembly for criminal acts. The law also raises the
    number of Supreme Court justices needed to strip a legislator
    of immunity from five to six. Both aspects contradict the
    provisions of the reformed Constitution.
    ¶3. (SBU) National Assembly members who pushed for the new
    law claim that it will protect legislators from
    politically‐motivated prosecutions and safeguard their free
    speech. However, given the Assembly's history of refusing to
    investigate even the most flagrant cases of corruption within
    its ranks (see reftel), this latest move is seen by civil
    society and legal groups as an affront to transparency and
    their ongoing anti‐corruption efforts.
    ¶4. (SBU) The new law also facilitates legislative immunity
    because the Supreme Court takes a minimum of 8‐10 months to
    authorize an investigation. According to the Attorney
    General's Office, the Court has so far authorized only one
    investigation against a legislator. The Attorney General's
    office also believes Law 25 diminishes the principle of
    checks and balances, since there is no impartial investigator
    with Justices and legislators each having oversight function
    of the other.
    ¶5. (C) Also disturbing is the possibility the judicial and
    legislative bodies already colluded to pass the new law. The
    Deputy Secretary General at the Attorney General's Office
    told Econ Specialist that Law 25 is a "copy and paste" of
    text drafted by the Codifying Commission on judicial reform,
    whose coordinator is also a magistrate from the Superior
    Tribunal. He said this made him think the passage of Law 25
    was already plotted between the Assembly and the Court.

    AG GOMEZ AND A POSSIBLE SUPREME COURT CHALLENGE
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐

    ¶6. (C) Having tried and failed to establish the law's
    unconstitutionality during the National Assembly debates, the
    Attorney General sent Torrijos a letter asking him to veto
    Law 25, a fact she made public after he signed the law.
    Gomez has since stated she does not discount the possibility
    of challenging the law's constitutionality, putting her in a
    public standoff with the president. At the Attorney
    General's request, the Ambassador will meet with her on July
    14, where she may seek USG support.
    ¶7. (C) However, the chances of such a challenge are unclear.
    Supreme Court Justice Arjona, one of the few Justices
    trusted by the business community, told Econ Chief on July 10
    that he believes the law is unconstitutional and a "very
    negative step backward" for Panama's anti‐corruption efforts.
    Arjona thought Gomez may ask the Court for a formal review
    of the law. Otherwise, Arjona said civil society groups or
    others could band together to seek the Court's opinion. He
    gave no indication, however, on how the Court would likely
    decide. (Comment: Given Arjona's reputation as one of the
    few clean Justices and alleged possible collusion between the
    Court and Assembly, he may well be in the minority. End
    Comment.)

    GOP BACKSLIDES ON ANTICORRUPTION PROMISES
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

    ¶8. (C) A particularly troubling aspect of the new law is
    President Torrijos' role in its passage. Although the
    National Assembly unanimously passed the measure in late
    June, it needed the President's signature to become law.
    Torrijos, who ran his presidential campaign on an
    "anti‐corruption" platform, appears to be taking a clear step
    backward. It is unclear whether Torrijos signed the law to
    appease his own party, the majority in the Assembly, in the
    lead up to the special sessions on Canal expansion.
    ¶9. (C) Also troubling has been the general lack of media and
    other attention on the new law, despite the popularity of
    last year's anti‐corruption reforms among the Panamanian
    public. The story was buried in the back of the major
    newspapers, when it appeared at all. A radio journalist told
    Econ Chief on July 10 he had received no calls from listeners
    on the subject, joking that Panama was "just waking up from
    the World Cup." (Comment: The GOP chose an opportune moment
    to slip this law through, with much of the country's
    attention diverted by the World Cup and possibly the Canal
    referendum. End Comment.)

    COMMENT
    ‐‐‐‐‐‐‐

    ¶10. (C) Comment: While Torrijos' move is disturbing, it was
    not unexpected by post. Given Torrijos' need for his party's
    and the Assembly's support on the Canal referendum, he was
    unwilling to go against the legislators. Also, with full
    National Assembly support for Law 25, Torrijos' veto would
    not have stopped the law's passage, although it could have
    sent a clear signal of his commitment to combating
    corruption. That Torrijos chose not to take a stand raises
    serious questions about the future of the GOP's
    anti‐corruption efforts. Allegations of political
    corruption, rampant during the previous administration, have
    not disappeared with Torrijos' presidency. Law 25 deals
    another blow to Torrijos' anti‐corruption bona fides and
    reinforces the suspicion held by those who thought his
    anti‐corruption platform was merely lip service to gain
    votes. End Comment.
    EATON

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