Panamas image hit by continuing scandals

Reports on Panama’s latest scandal are appearing around the world as news agencies from as far apart as Argentina pick up the allegations of President Ricardo Martinelli’s involvement in insider trading.

The president should clarify his entire relationship with the brokerage Financial Pacific (FP), said  Panama's former Ambassador  in Washington Ricardo Alberto Arias.

According to the lawyer the sending of two letters to the prosecutor, Jose Ayu Prado, who was investigating alleged multi million dollar fraud by FP, is far from appropriate.
"Obviously, it seems an effort to interfere in the process […] is not appropriate and demonstrates a level of interference that is not for the President," he said.
Meanwhile, The ex-attorney general and now Supreme Court judge, Jose Ayu Prado, confirmed Wednesday that the letters "are in the record" of the case.
Carlos Barsallo, ex-comisionado of the National Securities Commission, said that the letters "lend themselves to varying interpretations, which is harmful. Independence is required and the case has to look right."
He said that prolonging the uncertainty and lack of definition affects the securities institution.
Felipe Chapman, former manager of the Panama Stock Market, said that he feels ashamed and disappointed by the performance of the judicial system in the case.

According to Chapman, the judicial system should be called upon to settle differences in modern society in an impartial way. However, the financial expert questioned that,the Supreme Court has suspended a reorganization of FP by granting an injunction filed by its directors.
This reorganization, which he described as a wise decision, had been ordered by the Superintendency of Securities. Beyond  the court having suspended the reorganization, Chapman was critical of the fact that no final decision on the case had been issued.
"There has been no pronouncement by the court, therefore, we are in a legal limbo," he said, calling the lack of action "disappointing and frustrating."
The general secretary of the National Federation of Public Servants (Fenasep) Alfredo Berrocal warned that President Ricardo Martinelli's involvement with scandal could bring a bad image to the country at the international level.
Berrocal said It was regrettable that the president is frequently involved in these kind of scandals, saying that it deteriorates the image of Panama at the international level.