Anyone who has had a serious dealings with the justice system knows that Panama has many laws but little or selective enforcement. It is one of the few countries that still uses the ancient inquisitional form of judicial process where the accused never has the opportunity to face his accusers or to have a jury hear his case should it be civil. All judicial process is done by written form to a judge you never see (unless you make "a deal") who makes his decision, which can only be appealed to a higher court. This all takes significant money. But the big cost is the bribe you may be asked to pay to get the decision in your favor. I am not saying that all judges in Panama are dishonest because I know of some who are dedicated and fair, but I have been involved in cases and heard enough others where there is no doubt many are. The system lends itself to graft and corruption where only the wealthy, connected and corrupted can win.
At "The foundation for due process conference" in Washington last week several prominent Panamanians gave testimony on the condition of the judicial system in Panama, and it wasn't pretty. See article below.
What does this mean to you who invest in Panama? Have very good "prominent" attorneys and avoid conflicts whenever possible. Most international companies do not have significant problems in Panama as they have good legal council who's name and clout can be enough to quell a potential action. Few individuals will bring a civil case against them because they know they will not have the financial clout to go very far. So who are vulnerable? Small investors or individuals who may have a valuable property wanted by someone with clout. These are the most common cases I know of. A Panamanian who brings an obviously lame case against a foreigner is not fighting an uphill battle. The local will be connected either through family, friends or judicial contacts and will more than likely win. The individual who comes to Panama to retire will probably never get involved in the legal system.
What should Panama do to clean up its act? First is to change the legal system to be one of common law where a case can be heard in a public forum and an accuser or claimant can be examined along with witnesses who testify under oath.
Cases involving foreigners should have over site by some outside government entity in order to shine the light on flagrant violations of justice, and hopefully apply additional pressure toward judges to rule objectively and fairly.
"Panama has no rule of law '
Betty Brannan Jaén
Strong criticism of the Panamanian justice system made yesterday by Professor Miguel Antonio Bernal and executive director of the Citizens Alliance for Justice, Magaly Castillo during a conference organized by the Foundation for Due Process in Washington, USA.
Panama does not fill any of the minimum requirements (...) must have judicial independence, constitutional supremacy [and] respect for due process. These are minimum conditions, "said the professor.
Bernal said that "part of the political class there is the will there is a rule of law", but there is a "smear campaign" against members of civil society to propose real reforms. They want to "silence" he said.
Castillo, meanwhile, noted that "the Supreme Court is very political," so that "we can say that there is a separation of state powers." He added that civil society is being excluded from opportunities for dialogue on the issue of justice.
Of all the countries of America, said, Panama is the only-with the exception of Haiti that still uses the inquisitorial system which records the highest rate of prisoners per capita.
Bernal argued that Panama "is a complete absence of judicial independence" and "a complete abandonment of constitutionalism."
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