Panama - CorruptionPanama - Corruption
President Varela campaigned on a pledge to eliminate corruption in the government, increase transparency, and prosecute corrupt officials. His government has filed charges against several high ranking officials of the previous government, including the former head of the Supreme Court who was sentenced to five years in prison for corruption.
The former President, Ricardo Martinelli campaigned on a similar promise in 2009 but he and his administration are adjudged by Panamanians to have been the most corrupt administration since the return to democracy in 1990. There are a number of Martinelli administration figures in jail or under investigation for alleged acts of official corruption.
In the most recent edition (2015) of the Transparency International Corruption Perceptions Index, Panama ranked 94 out of 175 countries measured. The Panamanian judicial system continues to pose a problem for investors due to poorly trained personnel, case backlogs, and a lack of independence from political influence. Supreme Court judges are typically nominated to 10-year terms on the basis of political considerations.
Under Panamanian law, only the National Assembly may initiate corruption investigations against Supreme Court judges and only the Supreme Court may initiate investigations against members of the National Assembly, thereby encouraging, in effect, a “non-aggression pact” between these two branches of government.
The fight against corruption is also hampered by the GOP’s refusal to dismantle Panama's dictatorship-era libel and contempt laws, which can be used to punish whistleblowers, while those accused of acts of corruption are seldom prosecuted and almost never jailed.
Anti-corruption mechanisms exist, such as asset forfeiture, whistleblower and witness protection, and conflict-of-interest rules. However, the general perception is that anti-corruption laws are not applied rigorously, and that government enforcement bodies and the courts are not effective in pursuing and prosecuting those accused of corruption, particularly in high profile cases.
Panama’s government lacks strong systemic checks and balances that incentivize accountability. The lack of a strong professionalized career civil service in Panama's public sector also hinders systemic change.
Panama ratified the United Nations’ Anti-Corruption Convention in 2005 and the Organization of American States’ Inter-American Convention Against Corruption in 1998. However, there is a perception that Panama could more effectively implement the conventions.
Complaints by American investors about allegedly corrupt judicial and governmental decisions prejudicial to their interests remain common and problematic.
UN Anticorruption Convention, OECD Convention on Combatting Bribery
Panama has signed and ratified the UN Anticorruption Convention.
Resources to Report Corruption
NAME: Angelica Maytin
TITLE: Directora Nacional de Transparencia y Asseso a la Informacion (ANTAI)
ORGANIZATION Autoridad Nacional de Transparepncia y Acceso a la Informacion
ADDRESS: Ave. del Prado, Edificio 713, Balboa, Ancón, Panamá, República de Panamá
TELEPHONE NUMBER: (507) 527-9270 / 71/72/73/74
WEBSITE: www.antai.gob.pa Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The former President, Ricardo Martinelli campaigned on a similar promise in 2009 but he and his administration are adjudged by Panamanians to have been the most corrupt administration since the return to democracy in 1990. There are a number of Martinelli administration figures in jail or under investigation for alleged acts of official corruption.
In the most recent edition (2015) of the Transparency International Corruption Perceptions Index, Panama ranked 94 out of 175 countries measured. The Panamanian judicial system continues to pose a problem for investors due to poorly trained personnel, case backlogs, and a lack of independence from political influence. Supreme Court judges are typically nominated to 10-year terms on the basis of political considerations.
Under Panamanian law, only the National Assembly may initiate corruption investigations against Supreme Court judges and only the Supreme Court may initiate investigations against members of the National Assembly, thereby encouraging, in effect, a “non-aggression pact” between these two branches of government.
The fight against corruption is also hampered by the GOP’s refusal to dismantle Panama's dictatorship-era libel and contempt laws, which can be used to punish whistleblowers, while those accused of acts of corruption are seldom prosecuted and almost never jailed.
Anti-corruption mechanisms exist, such as asset forfeiture, whistleblower and witness protection, and conflict-of-interest rules. However, the general perception is that anti-corruption laws are not applied rigorously, and that government enforcement bodies and the courts are not effective in pursuing and prosecuting those accused of corruption, particularly in high profile cases.
Panama’s government lacks strong systemic checks and balances that incentivize accountability. The lack of a strong professionalized career civil service in Panama's public sector also hinders systemic change.
Panama ratified the United Nations’ Anti-Corruption Convention in 2005 and the Organization of American States’ Inter-American Convention Against Corruption in 1998. However, there is a perception that Panama could more effectively implement the conventions.
Complaints by American investors about allegedly corrupt judicial and governmental decisions prejudicial to their interests remain common and problematic.
UN Anticorruption Convention, OECD Convention on Combatting Bribery
Panama has signed and ratified the UN Anticorruption Convention.
Resources to Report Corruption
NAME: Angelica Maytin
TITLE: Directora Nacional de Transparencia y Asseso a la Informacion (ANTAI)
ORGANIZATION Autoridad Nacional de Transparepncia y Acceso a la Informacion
ADDRESS: Ave. del Prado, Edificio 713, Balboa, Ancón, Panamá, República de Panamá
TELEPHONE NUMBER: (507) 527-9270 / 71/72/73/74
WEBSITE: www.antai.gob.pa Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.