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DE RUEHZP #0692/01 2591938
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R 161938Z SEP 09
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 3742
INFO RUEHBO/AMEMBASSY BOGOTA 2852
RUEHGT/AMEMBASSY GUATEMALA 0808
RUEHMU/AMEMBASSY MANAGUA 0654
RUEHME/AMEMBASSY MEXICO 3863
RUEHSJ/AMEMBASSY SAN JOSE 2050
RUEHSN/AMEMBASSY SAN SALVADOR 1583
RUEHTG/AMEMBASSY TEGUCIGALPA 0449
RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/JOINT STAFF WASHINGTON DC
RHEHAAA/NSC WASHDC
RUEKJCS/SECDEF WASHDC
S E C R E T PANAMA 000692
NOFORN
SIPDIS
E.O. 12958: DECL: 09/14/2029
TAGS: PGOV PREL PM
SUBJECT: MARTINELLI PRESSURES THE JUSTICE SYSTEM TO SUPPORT
HIS AGENDA
REF: A. PANAMA 680
Classified By: Ambassador Barbara J. Stephenson for reasons 1.4 (b) and
(d)
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Summary
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1. (S//NF) Panamanian Supreme Court Justice Adan Arjona told
poloffs August 26 that President Martinelli personally called
each of the nine justices of the Court to pressure them to
vote in favor of reopening a corruption case in which over 30
members of the Revolutonary Democratic Party (PRD) are
implicated. Arjona called this "unprecedented" interference
with the judiciary. Arjona said Martinelli also asked him to
support the government's moves to change the contract terms
on electric generating companies, including the U.S. company
AES. Arjona said the Court would not defend these companies
against such pressure, and that they would have to go to
their embassies. Finally, Arjona said Martinelli told him he
was going to fire Attorney General Ana Matilde Gomez, then
denied to Arjona five days later that he had any problem with
Gomez. Vice President and Foreign Minister Juan Carlos Varela
told the Ambassador September 4 that the government had
decided to stop pressuring Gomez to resign. End Summary
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Judicial Interference
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2. (C//NF) On July 22 the Supreme Court (CSJ) decided to
reopen the long stalled CEMIS case (ref A), implicating two
CSJ justices and much of the current leadership of the PRD in
a bribery scandal. In a meeting with poloffs August 26, CSJ
Justice Adan Arjona revealed that prior to the CSJ vote,
Martinelli had called each of the CSJ Justices personally,
and pressed for them to reopen the case. Arjona said that
this was unprecedented, and that Martinelli was acting more
like a king than a democratic president. He added that given
Panama's weak institutions, it would be very hard to stop him
from abusing his authority in this way. Arjona told poloffs
that Martinelli was defending some of his actions by telling
people he was acting on instructions from the U.S. embassy.
Arjona advised that we reach out to people like VP/FM Juan
Carlos Varela, Minster of Economy and Finance Alberto
Vallarino, and Minster of the Presidency Jimmy Papadimitriu,
because they were the only ones who could influence
Martinelli. Everyone else, according to Arjona, was telling
Martinelli what he wanted to hear in the hopes of
ingratiating themselves to him.
3. (C//NF) Arjona described a meeting he had with
Martinelli on August 24. Arjona's ten year term on the CSJ
Third Chamber (which hears cases against the government)
expires at the end of this year, and he is anxious to be
reappointed. According to Arjona, Martinelli asked for
Arjona's support on the "electricity case," because the case
would go to the Third Chamber if U.S. company AES challenged
the GOP's unilateral changes to the contract terms. Arjona
reported that he assured Martinelli of his support, noting to
poloffs that the other members of the Chamber were so weak
and corrupt that Martinelli would get what he wanted anyway.
(Note: Arjona and many other sources have indicated that the
other two members of the Third Chamber, Winston Spadafora in
particular, and Victor Benevides to a lesser degree, are
corrupt. Spadafora had his U.S. visa revoked for his alleged
involvement in illegal trafficking in people. End Note.)
Arjona said that international companies whose contractual
rights were violated would have to ask their Embassies for
support in negotiating with the GOP, because the CSJ was not
going to defy Martinelli. Arjona described Martinelli as "a
Chavez" who did not want anyone to contradict him, and wanted
to be free to do as he pleased. Arjona predicted that the
measures Martinelli was taking to lower the cost of
electricity would end up getting Panama sued in The Hague for
breach of contract.
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A/G Next?
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4. (C//NF) In recent weeks the GOP's Anti-Corruption
Coordinator, Martinelli's first cousin Fernando
Nunez-Fabregas, has attacked Attorney General Ana Matilde
Gomez for failing to prosecute high level corruption. The
dispute stems from powers Nunez has been given so his office
can investigate claims of corruption. Gomez has argued that
these new powers are a violation of her writ as Attorney
General. This has fueled speculation that Martinelli wants
Gomez to step down so he can appoint his own A/G (Note: The
A/G is named by the President, with the approval of the
Assembly, to a ten year term, which does not coincide with
the election cycle. Gomez was appointed by former president
Martin Torrijos. End Note.) CSJ Arjona told poloffs that
Martinelli said he was going to "get rid of" Gomez, and
offered Arjona the job. However, Arjona later reported to
DEAFSN that he spoke with Martinelli again on August 29, and
Martinelli complained that the papers were falsely reporting
he wanted to remove Gomez, then claimed he had no problem
with the A/G. Arjona described Martinelli as "delirious" and
"incoherent" as he denied something he had told him five days
earlier.
5. (C//NF) PRD Deputy Leandro Avila told poloff September 3
that the Martinelli administration was putting political
pressure on Gomez to investigate and prosecute high level PRD
members. Referring to the recent jailing of former Minister
of Education Blgis Castro on charges of corruption, Avila
said that it was totally legitimate to investigate him, but
that the decision to jail him was the result of political
pressure from the government, as jailing a former minister
was a powerful symbol that its anti-corruption drive was for
real. He noted that Nunez' office was now looking at the
money the Torrijos administration made available to PRD
Deputies to carry out public works projects in their
districts from the Social Investment Fund (FIS) as a possible
case of corruption. Avila said that this has been common
practice for years, and that claiming it was an example of
corruption widened the net of possible "corruption" cases so
much that it began to look a lot like political persecution.
He said that Gomez was a tough and independent figure, and
that he did not believe she would allow this to take place.
He said that she could become a powerful independent
balancing force to control the Executive.
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Safe For Now
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6. (C//NF) On September 4 VP/FM Juan Carlos Varela --
unprompted -- told the Ambassador over lunch that the GOP was
no longer trying to remove Gomez from office, as Martinelli
had realized that doing so would damage Panama's image. He
said the President and Gomez were now going to focus on
rooting out police corruption.
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Comment
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7. (S//NF) Arjona is widely regarded among Panama's civil
society as a champion of judicial independence and probity.
His reports of judicial interference by Martinelli are
extremely disturbing. Even more disturbing is Arjona's
assumption that he cannot possibly be re-appointed unless he
indicates complete loyalty to Martinelli, even though Arjona
has been a very successful justice. His reports of
Martinelli's inconsistent stories and mercurial nature track
with what Post has observed. With regard to the A/G, while
she has not been very effective, she heads the only
trulyindependent institution in Panama. Post will report
septel on other institutions in Panama, and our proposed
strategy moving forward.
STEPHENSON