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### Viewing cable 06PANAMA1286, PANAMA'S CIVIL AVIATION DIRECTOR FORCED TO RESIGN

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PANAMA1286 | 2006-06-30 22:13 | 2011-05-31 00:00 | CONFIDENTIAL | Embassy Panama

`

    VZCZCXYZ0014
    RR RUEHWEB

    DE RUEHZP #1286/01 1812213
    ZNY CCCCC ZZH
    R 302213Z JUN 06
    FM AMEMBASSY PANAMA
    TO RUEHC/SECSTATE WASHDC 8476
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHAC/AMEMBASSY ASUNCION 0100
    RUEHBO/AMEMBASSY BOGOTA 2348
    RUEHBR/AMEMBASSY BRASILIA 0287
    RUEHBU/AMEMBASSY BUENOS AIRES 0169
    RUEHCV/AMEMBASSY CARACAS 1050
    RUEHGE/AMEMBASSY GEORGETOWN 0016
    RUEHKG/AMEMBASSY KINGSTON 0226
    RUEHLP/AMEMBASSY LA PAZ JUN LIMA 0659
    RUEHME/AMEMBASSY MEXICO 3109
    RUEHMN/AMEMBASSY MONTEVIDEO 0098
    RUEHQT/AMEMBASSY QUITO 0908
    RUEHSG/AMEMBASSY SANTIAGO 0197
    RUEHDG/AMEMBASSY SANTO DOMINGO 0364
    RUEHUB/USINT HAVANA 0034
    RUEABND/DEA AVIATIONS OPERATIONS TX
    RULSDMK/DEPT OF TRANSPORTATION WASHDC

` `

    C O N F I D E N T I A L PANAMA 001286

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 06/29/2015
    TAGS: ECON EAIR FAA
    SUBJECT: PANAMA'S CIVIL AVIATION DIRECTOR FORCED TO RESIGN

    REF: DEPT FOR WHA/SCHIFFER

    Classified By: AMB. Eaton for reasons 1.4(b) and (d).

    ¶1. (C) SUMMARY: Panama's Civil Aviation Authority (AAC)
    Director Tomas Paredes told EconOff that President Torrijos
    requested his resignation on June 26.  On June 30, Torrijos
    nominated Eustacio Fabrega Lopez as the new AAC Director and
    sent the nomination to the National Assembly for approval.
    Paredes alleges his removal was due to his support of an
    Attorney General investigation into alleged corruption by his
    Subdirector Nelly Simeon.  Paredes further alleges Simeon,s
    staffing decisions at the AAC are intended to replace non-
    Revolutionary Democratic Party (PRD) employees with PRD party
    members.  Without Paredes, the USG is losing a cooperative
    high-level official in its interdiction efforts and in
    ensuring a high level of safety in Panamanian aviation.  END
    SUMMARY.

    --------------------
    The New AAC Director
    --------------------

    ¶2. (C) Fabrega was the AAC Director from 1994 to 1999 under
    the Balladares administration.  Fabrega is an alleged old
    hunting companion of Manuel Noriega.  The AAC Coordinator for
    Operational Security told EconOff he worked with Fabrega and
    he was an excellent director.  The Coordinator told EconOff
    that Fabrega's nomination should be approved by the National
    Assembly "in a few days".

    ---------------
    Alleged Motives
    ---------------

    ¶3.  (C) Paredes told EconOff that AAC Subdirector Nelly
    Simeon has been trying to engineer his departure since she
    took office in 2004.  Paredes believes his removal is linked
    to Simeon's pending corruption investigation by the GoP's
    Attorney General's Office. Simeon is under investigation for
    misuse of government property and personnel.  In allegations
    filed with the Attorney General's office, Simeon is accused
    of operating an import/export business, Marketing Concepts
    Corporation (MCC), without submission of the requisite duties
    or paperwork.  The allegations further state that GoP
    personnel and vehicles were used to transport the products.
    Paredes told EconOff that the Director of the Customs
    Department personally stopped a search of MCC's offices.  As
    a result of the investigation, Paredes was required to
    respond to the Attorney General's office inquiries and
    corroborated many of the allegations.

    ¶4. (C) Paredes further alleges that Simeon has been using her
    position to fire non-PRD employees and fill them with PRD
    members.  Paredes claims Simeon is part of Torrijos' inner
    circle and has placed many of her friends and PRD loyalists
    in positions which control access and information flow to key
    ministers and Torrijos.  Paredes believes Simeon was working
    to pick his successor and has control of the AAC.

    -------------------------
    Simeon, Sampo and the DEA
    -------------------------

    ¶5. (C) Paredes alleges Simeon traveled to Brazil with Mario
    Sampo to solicit private investments for mining projects in
    Panama.  Sampo is a Brazilian businessman who has previously
    been under indictment for bank fraud in Panama.   Paredes
    alleges that while in Brazil Simeon held herself out to
    investors as GoP Vice Minister of Transportation and said all
    mining activities in Panama had to go through her office.
    Paredes related an alleged incident where Simeon personally
    interceded to prevent AAC security officials from detaining
    an airplane owned by Sampo which was not properly registered.
     Note: DEA in Panama has previously been in contact with
    Paredes regarding Simeon,s alleged involvement with Sampo.

    ----------------------------------------
    Latin American Civil Aviation Commission
    ----------------------------------------

    ¶6. (C) In November 2006, Panama,s AAC Director becomes the
    president of the Latin American Civil Aviation Commission for
    the next three years.

    -------
    Comment
    -------

    ¶7.  (C) The USG is losing a cooperative high-level aviation
    official in its interdiction efforts and in ensuring a high
    level of safety in Panamanian aviation.  If Paredes,
    allegations regarding Simeon are correct, Simeon joins a
    growing list of high-level PRD officials reported to Embassy
    officials engaging in illicit activity and using their GOP
    positions for personal gain.
    EATON

`