Panama News

By DON WINNER for Panama-Guide.com - Last night the US Ambassador to Panama William Eaton held a reception at his residence on the eve of the inauguration of Expocomer 2008 with Panamanian, regional, and international business leaders. While covering the event I talked to Glen Champion, the Vice President of Bern Hotels & Resorts Panama, and had the chance to talk to him about the recent decision by the Panamanian Supreme Court to nullify the 2003 ARI resolution granting them a concession to build and operate a hotel on Kobbe Beach, now known as Playa Bonita. (more)
We're Not Involved: Champion explained the legal action was initiated by the losing company in the bidding process (Desarrollo Urbanístico del Atlántico) against the Panamanian government. In addition, he said there were legal decisions at seven lower levels that went in their favor before the Panamanian Supreme Court nullified the 2003 ARI resolution.
What Happens Now? "We're still open for business," said Mr. Champion. I asked what they were going to do and what happens now, and he said they are waiting for the Panamanian Ministry of Economy and Finance (MEF) to make a decision. The old Inter Oceanic Region Authority (ARI) now no longer exists, and all of their functions have been rolled into the MEF. So, it now falls to the MEF. And at this point it appears the MEF has not yet decided on a plan. In the meantime the hotel at Playa Bonita continues to operate.
Problems With the Gamboa Rainforest Resort? I had heard a rumor after the Supreme Court handed down this decision on Kobbe Beach that "Gamboa was next." I asked Mr. Champion if there was any pending lawsuits or legal activity against that property and he said no, there is not. He also denied having heard those kinds of rumors, and rather speculated that it was just people speculating (if that makes any sense) about other problems the Bern organization might be facing.
A Suspicion of Corruption: This decision from the Supreme Court is being seen as a "step in the right direction" with regards to corruption. Did the Bern organization do something back in 2003 to convince ARI to change the rules or procedures to favor them? Did Bern pay someone off? No one will probably ever know. One thing is for certain - you'll never see a photo of Herman Bern handing a couple of suitcases full of cash to some government employee and smiling for the cameras. But the one thing you can see in cases of governmental corruption are inexplicable acts on the part of officials. Why in the world would ARI suddenly decide to change the rules at the last minute, and to do so in such a way as to keep anyone else from knowing what the new rules are? Why, for what reason? What common sense reason can be used to explain what they did? I don't have one. The Supreme Court apparently did not have one either, and they simply decided that the entire resolution is flawed and tossed it out (and let the chips fall where they may.)
The Standard Five-Year Slow Roll: If you're going to start some kind of legal action in the Republic of Panama, be prepared to wait at least five years for "justice." That's about how long it takes (on average) for any case or lawsuit to slowly and painstakingly wander it's way through the judicial system. And this calendar is particularly true when there are millionaires fighting on both sides with unlimited assets to spend on lawyers. I win (you appeal). You win on appeal (and then I appeal that.) If you want to slow things down, you can. If you want to speed things up, forget about it. This case is a perfect example of how long it takes to get resolution on anything - about five years on average. And in fact that's almost considered "fast" in the grand scheme of things.
"Faith's Review and Expectation" First of all I had no idea this piece of land or issue was in dispute before the court. Secondly, the only thing I know about it now is what I've read in the papers, and a little additional information I learned when speaking to Mr. Champion last night. I have not, for example, either read the case file or done any independent investigation into this issue or decision. But if I had known about it before the decision, the "common sense" man in Panama would have put their chips on the Bern camp. They already built the hotel - it's up and operating. Any betting man would have thought the Bern people would have won this case in a "business as usual" decision. This decision from the Supreme Court was way, far away from "business as usual." Rather, it's being seen as shades of things to come, and of a future remarkedly different from what we've become accustomed to seeing over the past five generations or so. Just as "grace is enabling power sufficient for progression" - this is new.
Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

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