{"id":25750,"date":"2019-04-09T13:40:19","date_gmt":"2019-04-09T18:40:19","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=25750"},"modified":"2019-04-09T13:44:03","modified_gmt":"2019-04-09T18:44:03","slug":"panama-corruption-looms-may-presidential-elections","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-corruption-looms-may-presidential-elections\/","title":{"rendered":"In Panama, corruption looms over May presidential elections"},"content":{"rendered":"

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\u00a0On Sunday May 5, Panama will hold general elections. Over 2.7 million voters<\/a> will head to the polls to cast their ballots for president, 71 members of the country\u2019s unicameral National Assembly and local representatives. This year\u2019s elections will be the sixth since the democratic transition in 1994. The election will likely result in a defeat for sitting president Juan Carlos Varela (2014-2019)\u2014who is prohibited from running for a consecutive term\u2014and the Paname\u00f1ista Party (PP). The Varela administration is blamed for the economy and is at the heart of a corruption scandal involving Odebrecht. Laurentino Cortizo, from the Revolutionary Democratic Party (PRD), seems poised to return the party founded by dictator Omar Torrijos (1968-1981) to the Palacio de las Garzas<\/em>.<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Much has changed in Panama since the 2014 election. Back then, Juan Carlos Varela, a millionaire businessman turned politician, led his conservative party to victory under the promise to \u201cput the people first\u201d (el pueblo primero<\/em>), a slogan that prioritized voters in a country where 19 percent of the population lives below the poverty<\/a> line. Five years on, Varela\u2019s government has proven to be a disappointment for most Panamanians. With only 23 percent of seats in the country\u2019s legislature, the government has struggled to get legislation passed. Although the Panamanian economy has grown by an annual average of approximately 5 percent under his watch\u2014well above the yearly average of 0.6 percent across Latin America and the Caribbean\u2014his economic gains pale in comparison to those of his controversial predecessor, Ricardo Martinelli (2009-2014), who overssaw double-digit growth rates and massive investments in public infrastructure\u2014perhaps best symbolized by the gleaming Panama Metro.<\/p>\n

Varela\u2019s fall from grace<\/strong><\/p>\n

Yet, the cooling down of the economy is not the main factor explaining the governing party\u2019s likely defeat in the May elections. In 2017, it came to light<\/a> that Varela and the Paname\u00f1ista Party had received at least $700,000 from Odebrecht through a third party. Varela and his party used the money from the infamous Brazilian construction giant in the 2009 elections, which funded Varela\u2019s successful bid as Ricardo Martinelli\u2019s running mate. While the sitting president at first denied<\/a> the accusations, he later on backtracked by admitting<\/a> that payments had been made, which he labeled as \u201cdonations.\u201d Investigations later disclosed that Odebrecht had delivered over $100 million<\/a> in bribes during the Mart\u00edn Torrijos (2004-2009), Ricardo Martinelli (2009-2014) and allegedly Varela governments. Although Varela would go on to publicly support the $220 million fine<\/a> that Panama imposed on Odebrecht, his administration had already been tainted by corruption in the eyes of voters. In the latest edition of the Corruption Perceptions Index, Panama ranked<\/a> 93 out of 180 countries. As a result, Varela\u2019s approval rating has dropped from 80 percent at the start<\/a> of his presidency to barely<\/a> 20 percent this year.<\/p>\n

Varela has also faced difficulties with his former ally, Ricardo Martinelli. In 2015, Martinelli fled to the United States after a local court ordered his arrest for wiretapping<\/a> over 150 people, including rival politicians, journalists, union workers and lawyers. He has been in jail ever since he was extradited<\/a> to Panama last year. This has not stopped Martinelli from launching a mayoral and legislative bid in next month\u2019s elections. Despite his fall from grace, a recent poll showed<\/a> Martinelli tied for first place in his bid to become the mayor of the District of Panama; whether he can legally run is currently being discussed<\/a> in an electoral court. Whenever he can, the former president accuses<\/a> the sitting president of meddling in the country\u2019s institutions to prevent his release from El Renacer<\/em>, the penitentiary where he is currently locked up.<\/p>\n

Three main candidates <\/strong><\/p>\n

Voters are poised to punish Varela\u2019s Paname\u00f1ista Party in the polls. Leading the uphill battle for the party is Jos\u00e9 Isabel Bland\u00f3n (popularly known as Chalo), the 51-year-old mayor of the District of Panama. A lawyer by training, Chalo gained the incumbent party\u2019s presidential nomination with 56 percent of votes in a primary election. Despite his internal support, the sitting mayor is preforming poorly in the polls and is expected to land far behind other candidates. The mayor\u2019s inability to distance himself from an unpopular president, added to the fact that Odebrecht won numerous public bids<\/a> in Panama City during his administration\u2014which he has actively defended\u2014have severely weakened his electoral prospects.<\/p>\n

Polling better is Democratic Change (CD) candidate R\u00f3mulo Roux, 54, a former Minister of Canal Affairs (2009-2012) and Minister of Foreign Relations (2012-2013) during the Martinelli administration. Roux previously ran an unsuccessful bid for the presidential nomination of Democratic Change in the 2014 election. Once a key ally of Martinelli, Roux turned on the supermarket tycoon as his legal problems unfolded. In 2018, Roux defeated his former boss for control of the party in a convention. The triumph laid the groundwork for him to win the party\u2019s presidential primaries, which he did easily with 69 percent of votes. Martinelli, however, has proven to be a thorn in the side for Roux\u2019s campaign. Due to the former president\u2019s allies within the party and nostalgia among his voters, Roux has been forced to publicly defend the embattled former president. Until recently it was suggested<\/a> that Martinelli could be his vice-presidential running mate. Likely as a result of his close ties to the controversial former president, the Democratic Change candidate is polling in second place.<\/p>\n

Laurentino Cortizo is the leading candidate in this year\u2019s race. Barring any unforeseen development, he will become Panama\u2019s next president. Cortizo, 66, is a veteran politician running on the platform of the Revolutionary Democratic Party (PRD). In the past, Nito, as he is popularly known, has been a deputy for the National Assembly (1994-2004) and Minister of Agricultural Development (2004-2006). In 2006, he unexpectedly quit his ministerial post due to his opposition to aspects of the United States-Panama Trade Promotion Agreement. After an unsuccessful bid for his party\u2019s nomination in 2008, Cortizo took on a secondary role in the PRD where he developed a following among the party bases. Last year he made a comeback by winning the party\u2019s packed presidential primaries<\/a> with 66 percent of votes (there were 17 names on the ballot). Nito\u2019s outspoken criticism of Varela\u2019s dealings with Odebrecht has given him a platform that sets the PRD candidate apart from the corruption surrounding Roux<\/a> and Bland\u00f3n<\/a>.<\/p>\n

With barely a month until Panama\u2019s next election, candidates are struggling to sway voters to their side. The most important issue hanging over the election is the extent of corruption in one of Latin America\u2019s youngest democracies. Whether the country\u2019s political establishment will be able to shake off its corrupt past is a question that remains unanswered.<\/p>\n

Lucas Perell\u00f3 is a PhD candidate in Politics at The New School for Social Research. You can follow him on twitter <\/em>@lucasperello<\/em><\/a>.
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    \u00a0On Sunday May 5, Panama will hold general elections. 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