Panama newspapers gain reprieve

The on-line version of La Estrella de Panama on Thursday Jan. 5 carried  a count down clock to the  impending closure of the country’s oldest newspaper and its tabloid stable mate El Siglo. at midnight.

While  Eduardo Quiros the  president of the controlling company GESE, owned by Abdul Waked said that there was no Plan B to save the newspapers and final editions were being prepared for distribution on Friday, employees were at the Ministry of Labor (Mitradel)to confirm their entitlements when the axe fell.

But  it didn’t.

The United States has extended the license that will allow the two dailies  to continue publishing.

They   as well as Soho Mall, also owned by Waked,, will  have access to the US financial and commercial markets.

The US Treasury Department, through its Office of Foreign Asset Control (OFAC), renewed the licenses for both newspapers until July 13, 2017.

In the case of Soho Mall, which is under the control of a group of banks seeking a buyer, the extension is until March 10 .

A US Embassy statement said:  “Based on various communications with interested parties toward a definitive solution for the GESE editorial group, the United States Embassy in Panama reports that OFAC issued a modified general license for the newspapers La Estrella and El Siglo,”

The businesses were included on the Clinton List in May for activities related to money laundering and drug trafficking.

The United States prohibits its citizens and companies from maintaining relationships with listed entities.

“The license allows US companies and individuals to continue to offer services to the newspapers’ websites, as well as to buy products such as ink and paper for print publication,” the embassy added.

“The intention of this extension is to give these companies time to disengage from their business relationship with GESE before July 13, in case a permanent solution is not achieved where GESE does not need any license”

The US Ambassador to Panama, John Feeley has suggested that the papers’ problems could be solved if Waked sold his controlling interest, but Waked  has been quoted as saying on  several occasions, : I will sell my son, but not the newspapers. That all Panama understands,”