Potential Panama economic crisis brings caution call
PANAMA’S Chamber of Commerce has called for caution with the possibility of a major economic crisis brought on by US action surrounding one of the country’s largest business groups led by the Waked family.
The Chamber’s president, Jorge Garcia Icaza has urged the Executive Branch, through the Ministry of Labor and Workforce Development to “mitigate” the uncertainty generated by the US case involving Waked International Group, S.A. with at least 1300 jobs that could be affected by the shutting down of links to 68 companies in the Waked empire.
Meanwhile, the US Embassy says that the prohibition on engaging in transactions with persons and companies mentioned in the Clinton List extends to Americans who have dual nationality.
The Waked family is considered one of the most powerful in the Panamanian business world. In the province of Colón, specifically in the free zone they are almost ubiquitous reports La Prensa.
The purchase of the iconic Felix B. Maduro chain of department stores in 2015 raised the Waked retail profile and the recent construction of the Soho Mall on Calle 50 ensured top ranking in the world of luxury brands.
Its undeniable weight and economic power, has generated uncertainty in the country following accusations of the United States Treasury Department and the US Drug Enforcement Administration (DEA)., US authorities registered 9 executives, including Nidal Waked (under arrest in Colombia) and 68 companies in the call list Clinton, accusing Waked members of the family to lead a network of laundering drug money from.
Being on the list means that any US citizen or company based in that country cannot send to or receive money or goods from corporations mentioned in the Clinton List.
In practical terms, its stores cannot continue to sell merchandise from the United States. Relations were also frozen with financial institutions of that country including credit cards while all US suppliers are vetted to avoid transactions with listed companies.
There has been no shortage of rumors and speculation about the future of the business empire throughout the region, led by Waked International nal Group, S.A. (WISA) headed by Abdul Waked, with about 104 duty free and retail stores.
Garcia Icaza in addressing questions from La Prensa called for prudence but acknowledged that the country has to face changes to address the issues.
Referring to the impact it will have on the country’s judicial problems he said: “It is important to keep this situation in perspective. This is a serious court case that will have to be handled by both US and Panamanian justice in harmonious cooperation, in adherence to due process and respecting the presumption of innocence. “
Looking to the future Garcia said: “The government should lead a professional genuine transformation of the administration of justice, endowing it with greater financial resources and that the system can act properly for the benefit of all.”
However, he said it is important that this situation is not confused and defined as a problem of the Panamanian business class. “Entrepreneurs are serious, generate jobs, and wealth and are the engine of the economy, working honestly with the thousands of collaborators who are part of our business community.”
Given the involvement of the Waked group in so many economic sectors, the Chamber thinks there will be a reshuffle in the representation of brands and businesses in the country. By how much and when is difficult to visualize.
“It is important to take the time to see what the alternatives are and we should not underestimate the ability we have to find Panamanians to step up to the plate.
“It is essential to allow time for the legal defense of companies to present their defense. We must be patient and prudent at this time to not create a bigger crisis than there already is.”
