Titling Scams and Suspicious Canal Bids: Panamanian Corruption Spreads to Land Holdings and Prominent Politicians
After the approval of the Panamanian free trade agreement (FTA) with the United States on October 12, 2011, President Ricardo Martinelli praised members of the United States Congress who had supported the pact, stating that “through their hard work and supportive pro-growth policies, Panamanians are building one of the strongest, most competitive economies in Latin America.” With the lucrative Panama Canal expansion project and the recently passed FTA, in the next five years Panama is projected to have the highest rate of economic growth in Latin America. Despite such growth, however, Panama’s economic and social development will most likely be crippled by the revelation of persistent government corruption, including major land titling and construction scandals. These concerns come at a crucial time, as relatively vast investments are being attracted from around the world and the U.S. is strengthening ties with its long-linked trade and security partner.
Land Scams: Widespread Government Involvement
Recent news articles have brought to light a new series of scandals, as investigative journalists level accusations against Panamanian government authorities for illegally granting land titles to anonymous companies and close friends. Panama’s officials, known for their cronyism and skullduggery, have been awarding the transfer of extremely expensive parcels of land to such companies as Segura Ventura, S.A. The real owners of these companies, in accordance with their anonymous status, are usually kept secret. Intimate friends of the Martinelli administration have also become possessors of illegal land titles. Allegedly, the administration is deeply involved in these land scams in the areas of Juan Hombrón, Paitilla, Costa del Este, and Chilibré. Due to increasingly discernible government corruption, these land titling scandals, once fully disclosed, will most likely hinder Panama’s economic and social development.
This analysis was prepared by COHA Staff.
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