Panama Investor Blog

Arms for food program nets 157 firearms in Panama

After reading this you will know the most violence prone areas of Panama. Now, in Compton California a similar program netted a record 945 weapons this year compared to last years paltry 387. Must be the economy.

From Newsroom Panama
Panama’s "Arms and ammunition for food and medicine" program netted 157 firearms  in Chorillo in exchange for $27,000 in vouchers

The program which ran for two days at the end of last week, is  aimed at reducing  the number of, weapons on the streets of the most violence prone areas of the country was promoted by the Government the National Police, and the National Assistance Program .

Among the 157 weapons surrendered were six military rifles, five AK-47, and an M16, said Deputy Commissioner Javier Fanuco,.  In addition they 14,000 rounds of ammunition were handed in.
 
Officials are now trying to verify whether any of the weapons were stolen, in order to return them to their rightful owners if they are legitimate  The remaining weapons will be destroyed.
   
The next round of the program will be carried out in Curundú and Tocumen, and possibly San Miguelito and Alcalde Díaz.

So you think safe deposit boxes are safe?

Several readers sent me this disconcerting article  this week. What strikes me the most is the articles slant that everyone is a criminal until they prove otherwise, and the reporter is OK with that. I wonder how he would react if one of those boxes was his?

Here are some of the more disturbing excerpts, but you can read the whole story here at the Telegraph... and a more balanced perspective here at Sott.net.

Police have seized a potential £1 billion “treasure trove” of cash, drugs and guns in an unprecedented raid on concrete vaults holding 7,000 safety deposit boxes.

More than 300 officers and staff were involved in simultaneous raids at three depots in London’s Park Lane, Hampstead and Edgware. Officers have secured the concrete and steel vaults and will take several weeks to remove each box, using angle grinders, to a secret location where they will be prized open with diamond-tipped drills.

Although the operation is being treated as a money laundering investigation senior officers admitted that there was a potential to uncover a massive range of “ill-gotten gains” stored at the depots, including expensive jewellery, computer data, stolen artworks and sculptures.

Some of the boxes are only A4-sized, while others are “walk-in” vaults.

Although they do not know how many of the 7,000 boxes are being rented - at around £100-a-year - police suspect up to 90 per cent of them may hold criminal assets.

Mr Yates said that detectives expect to seize a “substantial amount” of criminal assets from the searches.

“Operation Rize is a money laundering investigation and is entirely unprecedented, one of the largest of its kind ever undertaken in the UK,” he said.

“In the past safety deposit boxes have been searched on an individual basis often resulting in the recovery of guns, drugs and cash. We believe that this operation has the potential to impact upon many layers of serious crime.”

Members of the public who have innocently and legally stored their valuables were “inevitably” going to get swept up in the disruption, it was predicted. Police said they could use a freephone number - 0800 030 4613 - to claim back their goods.

Is Panama a safe place to live?

There have been a number of comments to my post earlier about bringing cash into Panama that have turned to the subject of crime in the country. There is no doubt that crime is increasing in Panama and certain folks are more likely to become a victim of crime than others. 

Why is crime on the rise? Why doesn't the government do something about it? And are gringos more susceptible than Panamanians? What should individuals do to protect themselves? Is Panama a safe place to live? These are the questions I get very frequently in emails from readers considering moving to Panama.

Everyone agrees that crime is on the rise, but it is the type of crime that is on the rise rather than crime in general that is disconcerting. Panama has always been plagued by opportunistic petty crime as is every country, especially in the third world. My wife's sweet aunt who has lived in David for over 70 years says malientes in the neighborhood break into her yard to steal her propane tanks and valves on a yearly basis. Her husband has hundreds of valuable Bonsai trees in pots he has raised for 30 years all over the yard and no one bothers to take a leaf.  They are after what they can use or easily sell. She says she has dealt with these types of crime for years and even with a dog in the yard they manage to take her gas, so she probably knows the thieves.

When I came to Boquete 15 years ago we occasionally would hear about a Panamanian vacation home being broken into while no one was there and everything including the fridge was removed. But we never heard of home invasions until recently. Most homes and businesses have bars on windows which should tell you something about how Panamanians deal with crime. Prevention!

Like bees to honey, criminals have found easy marks in Panama and they do a lot of preparation and due diligence before they strike these days. Oh there are the occasional muggings and opportunistic robberies, especially in Panama city, but now the criminals are more sophisticated. Most crime in the interior of the country are home robberies while the owners are away. Criminals are cowards and would much prefer an easy target than a possible angry homeowner who is prepared. So they carefully case the home from a distance and watch the comings and goings and learn the pattern. They have scouts and cell phones and can know when the owner is returning down a long road home and be long gone with your stuff when you pull in. And what stuff do they prefer? Laptops, jewelry and other small items that are easy to carry and easy to sell. 

So what about the home invasions. In these case the criminals are much more brazen and want cash. They may break in the home, tie up one of or more victims and send the other to the local bank to make a hefty withdrawal. They may have heard there is a safe with cash and valuables and they will make you open it. Even in these horrible incidents, it is rare to hear of someone injured which makes it no less traumatic or dangerous. Again most of these crimes take place in the city, but there have been several incidents in the Boquete area in the last year or so and one was a foreign couple.

Are the police any help? Not really because in the interior there is usually only one patrol car per town and they don't patrol because they don't have a budget for gas.  So don't count on police protection. Aren't Panama laws enforced? No, but think about it. How do you protect a wide square mile area with homes scattered all over it. Even if you patrolled the crooks would just have a lookout watch your pattern and avoid you. So you have to take matters into your own hands.

Are gringos more of a target? You betcha. North Americans flocked to Panama and Boquete buying up land as if they were running out of it, and build beautiful homes on the sides of hills to take advantage of the views. But few gave much thought that maybe these very friendly neighbors may not be the only folks they have to deal with in the future. So home robbery is becoming rampant and the occasional invasion happens too. A gringo house is easy to spot in the countryside as it will be  comparatively large and with a new car in the drive. Few Panamanians can afford such luxury so crooks can be sure there are more valuables in that home  than the Panamanian house down the road. What can you do? If I lived outside of a gated and guarded community I would have a full time caretaker and his family living on the property. They are just more eyes and ears. What about a dog? Dogs are easily poisoned or killed outright, so only count on them to warn you of someone entering your property when you are there.

I have a number of friends who live on small farms scattered about and have no problems because they keep people always on the property. Sure it costs more, but you have built in security at the sacrifice of some privacy. So the fact is if you don't have some kind of security you are an easy mark and in time  you will likely be robbed.

Do you need a gun? Depends on you and your ability and willingness to use it should the time arise. Should you get a permit? Sure if it is no big deal to secure one. But I hear it is more difficult now and can take many months to acquire. The crooks won't have a permit and won't be afraid to use a weapon should they feel threatened. If you have to protect yourself from physical harm the last thing I would think about is the legality of the weapon at hand. This is not going to be a regular occurrence so if the permit is a hassle to get why worry about it. It is just another unenforceable law in Panama. And what should you do if God-forbid you kill or wound someone? Let your conscience be your guide. Once bad people know you are able to take care of yourself, you will probably not encounter another problem. Thieves like easy marks and you aren't one of them. All in all, it is best to live in a gated and guarded community where you can leave your home for weeks or months and only worry about the mildew invasion when you return.

So is Panama safe? Yes it is. In 15 years I have never been accosted and neither have my friends living in the area. Just don't be an easy mark and become a victim. Be prepared as you would living in your home country. No one sleeps with their doors unlocked anymore and they count on their neighbors for help when they need it. If you don't have close neighbors you better look at other options.

It is more than worth the extra vigilance to live in Panama because freedom thrives in places that are more self reliant such as the Panama countryside. Freedom thrives in a reasonable chaos where the biggest crooks, (government) are unable to watch your every move and don't much care. Panama is still a wild and wonderful place full of pristine beaches, jungles and mountains with adventure and sport like no where else on the planet. The people are friendly and will accept you with all your many faults you bring with you. Panama is not perfect and I thank God it is not. There is no freedom in perfection in this world.

The Failure of Anti-Money Laundering Laws

Our friends from Freedom and Prosperity have come out with another great video, this time about money laundering how unsuccessful it has been in catching crooks but highly successful in making everyone's life for difficult.

Costa Rica sets example for corrupt politicians

This article from La Nacion in Costa Rica provides details on the conviction and sentencing to jail of a former President of a party and other high ranking officials for corruption. Here in Panama, corruption is rampant from the lowest official working as a minor clerk in a state office, apparently all the way to the top. It has come to be expected that if you are fortunate enough to be elected by the people or placed in a position for helping in an election, it is now your turn to reap as much as possible during your five year turn at bat. This atmosphere of corruption starts early, as children learn that this is the way to get ahead.

It is socially accepted to pay a little to get paperwork pushed through the heavy bureaucracy which of course leads to more delays for those who don't pay. I was amazed years ago at an accepted practice here in Panama to be able to pay $250 in order to get land titles registered in days rather than the weeks or months it may take after submission. Everyone I knew went this route because it meant you got paid by the buyer faster when you delivered title. The $250 is made out to the public registry so it is not corruption per se, but it seems to me that it encourages delays in order to get more people to pay the $250 to the state. The state is not UPS or Fedex where they should have differing rates based on who can or is willing to pay. We all are already paying the state to perform at maximum level.  When our various applications are delayed month after month we know it is because someone in some office is waiting to be paid off. Files that had "disappeared" in some office somewhere miraculously reappear when a finders fee is paid. All graft does is enrich those who practice it and it encourage inefficiency.

We have seen the local papers recently full of stories of past politicians who are accused of taking advantage of their positions to enrich themselves and their families.To expose them without any prosecution or penalty sends the message to the people to continue the practice of corruption as exposure means nothing other than a few nasty articles in the local paper pointing out how much you got away with. Unfortunately, to many this is like a badge of honor. Exposure without penalties just makes things worse and encourages corruption.

I would hope that Panama will take the example set by Costa Rica and show the citizens that if you get caught stealing from the people there are severe penalties. This is the only way Panama can reduce corruption in its society and strengthen the rule of law so all citizens are treated equally.

The first Paragraph of the article says it all.

"Justice and the political system of our country have gained credit, credibility, legitimacy and strength to the historic and unanimous verdict issued Monday by the trial court in the case of Goicoechea Box-Fischel.  The sentence against the former president and presidential candidate of the Christian Social Unity Party (PUSC), Rafael Ángel Calderón Fournier, and six of the seven other defendants-all, though to varying degrees, influential people in politics, administration and business - , is a stern message, yet refreshing, against impunity and for the institutions.  Therefore, revives confidence in our rule of law, equality of citizens before the law and democracy as the basis of social and political organization."

Merida funding in Panama begins

Although a rather small sum compared to numbers we usually hear thrown about by the U.S. government, the $2 million initial funding for the Merida initiative has begun in Panama.

From the State Department
Bureau of Public Affairs

Office of the Spokesman

Washington, DC

March 13, 2009

U.S. Ambassador to Panama Barbara Stephenson and Panamanian Minister of the Presidency Rafael Mezquita today signed the first letter of agreement implementing the Merida Initiative, a multi-year regional effort to combat organized crime, gangs and the trafficking of narcotics and firearms. Today's signing provides an initial $2,011,000 in FY2008 funding for the first year of the Merida Initiative.
Under this agreement, the Panamanian Government will participate in the following four projects fully funded by the U.S. Government: Central American Fingerprint Exchange, $300,000; Central American Vetted and Sensitive Investigative Units (SIU), $1,000,000; Improved policing and police equipment, $613,000; and improved prison management, $100,000. A second letter of agreement to be signed in the future will cover projects including the targeting of at risk youth and anti-gang programs, community policing, and demand reduction.

Representatives of the Government of the United States and the Government of Panama will meet quarterly to review qualitative and quantitative progress towards achievement of the project goals and objectives. These evaluations are in addition to the ongoing monitoring of the programs and activities conducted by each government.

How serious a problem is money laundering in Panama

According to the latest U.S. government report on money laundering and financial crimes in Panama, there are some serious challanges. Highlighted are the Colon Free Zone, financial and banking center and the construction boom. The report does say however  that the construction industry appears to be more ligitimate than previously thought, highlighted by the diminished activity since the real estate bust. Rather than reprint the entire report, here is a link to Eric Jacksons Panama news which carried a summary. The entire 558 page report can be downloaded here.

Why 911 does not work in Panama

An article in LA Prensa caught my attention because it shows the challenges that face this small country when it comes to making beneficial changes for the public. In the first 4 days of implementing the 911 emergency call number they received over 30,000 calls of which they believe only 300 were actual emergencies. The other 29,700 were prank calls which take up all of the 14 lines making it impossible for actual emergency callers to get through. Why would something like this take place? According to the article in La Prensa, it is because lack of education and lack of penalties for making prank calls. The delinquents behind the prank calls need education in the fact that their actions can cause people to die and that the penalty for making false calls will be very serious. The challenges the country faces in penalizing young people is that laws have no teeth with them. This is why sophisticated criminal operators use underage teens to perform the crimes as they are rarely held for criminal action, even if it involves robbery or battery.

La Prensa;

The new 911 Emergency Management System received upward of 30,000 calls, less than 1 percent of them valid, during the first four days of the service’s launching.

System Director Marta Sandoya said the situation is very serious, since the call center can only serve up to 14 calls simultaneously.

“While a delinquent is monopolizing the time of one of our operators, a person who really needs help may be on call waiting,” she said, explaining the system’s intention is to dispatch emergency aid within 15 minutes of receiving a call.

That time goal may be not be possible now, with the number of false alarms forcing operators to attempt to verify the caller’s identity and location before sending help.

Government Innovation Minister Gaspar Tarté said the issue represents a cultural problem. “The Panamanian people need to act more intelligently and seriously than other countries that also report these irregularities,” he said. “We need to understand that the misuse of this service can result in someone’s death.”

Sandoya added that his office was working on drafting a law that would impose “harsh” punishment on those who made prank calls, and hoped lawmakers would regard it as a crime equal to that of threatening a person’s life.

Panama ranks no.8 in LatAm murder rate for youth

In this ranking Panama would rather be in last place, but unfortunately they are in the middle of the pack of 16 countries rated by World Health Organization for young people between the ages of 15 and 24 who are victims of murder. In a recent report titled “A Map of Violence on Young People in Latin America,” the likelihood of a young person in Latin America being the victim of a murder was 30 times greater than a person living in Europe. You can read the complete report here www.ritla.net. Glad I am over 50 as the statistics show we are not the targets.

Civic groups demands repeal of security reforms

The recent security reforms decreed by the President have met with strong resistance that appears to be gaining momentum. Many civic organizations as well as a number of high profile Panamanians have come out against the reforms as a throw back to the days of the dictatorship. Many consider this move disastrous for the ruling party at a crucial time of elections because it has apparently united both opposition and the general population against it.

La Prensa

A letter has been sent to the Asamblea asking it to repeal the recently approved security reforms.

The Asamblea returns to session for the first today since the reforms were enacted.

Carlos Lemos/LA PRENSA

opposed: A civic organization has written to the Asamblea Nacional demanding it repeal changes made to the nation’s security agencies.1082799

The Comisión Nacional Pro Valores Cívicos y Morales yesterday asked the Asamblea Nacional to dismiss the reforms to public safety recently approved by special decree.

A letter from the commission, which represents six civic organizations, was sent to the media yesterday.

The Asamblea returns from a recess today, and will meet for the first time since the reforms were enacted by President Martín Torrijos,

“We have concerns about the legal changes that were recently enacted,” the letter stated. “We are departing from an historic commitment to public security based on democratic values and handled by civilian authorities.”

The letter asks that the reforms be “dismissed” by the Asamblea and that any future security reforms be debated by the legislature before they are enacted.

The Asamblea will begin debating several articles that were removed from the security reforms because they conflict with the country's Constitution.

This includes perhaps the most controversial of all the proposed security reforms, the right for the country's newly-created security agency to intercept private communications without a court order.

Critics say that the creation of the security agency and the powers that Torrijos wants it to possess are reminiscent of the infamous G-2 intelligence service operating under Manuel Noriega's military regime, which was responsible for keeping tabs on dissidents critical of the dictatorship.

The government has defended the reforms as being necessary to combat the country’s growing crime problem. Panama has experienced an increase in violent crimes.