US embassy cable - 04PANAMA2881

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PANAMA: TRANSPARENCY OF BUDGETS/MILITARY SPENDING

Identifier: 04PANAMA2881
Wikileaks: View 04PANAMA2881 at Wikileaks.org
Origin: Embassy Panama
Created: 2004-11-30 16:31:00
Classification: UNCLASSIFIED
Tags: EFIN EAID PM ECONOMIC AFFAIRS
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.


 
UNCLAS PANAMA 002881 
 
SIPDIS 
 
 
TREASURY FOR OASIA/MDM: J. FRANCO 
STATE FOR EB/IFD/OMA: L. GALLAGHER 
 
 
E.O. 12958: N/A 
TAGS: EFIN, EAID, PM, ECONOMIC AFFAIRS 
SUBJECT: PANAMA: TRANSPARENCY OF BUDGETS/MILITARY SPENDING 
 
 
REF: A. STATE 239929 
     B. 1998 PANAMA 02908 
 
 
1. Military forces are constitutionally banned in Panama. 
The Central Government oversees Panama's civilian security 
forces.  Panama presently appears to meet the standards set 
out in the legislation, described in reftel, for 
international financial institution funding.  Per reftel A, 
the following information is provided: 
 
 
------------------------------------------ 
A. General Overview of Auditing Procedures 
------------------------------------------ 
 
 
(1) Civilian security expenditures are audited by the 
Comptroller General's Office.  Each governmental institution 
also maintains its own auditing office. 
 
 
(2) The Comptroller General audits security expenditures. 
 
 
(3) The audits are reported to the Comptroller General. 
 
 
(4) All authorities who receive the audits are civilian. 
 
 
(5) Yes, there is an existing framework for conducting annual 
audits of security forces expenditures.  The Comptroller 
General audits the security forces on an annual basis and 
each institution's internal audit office audits expenditures 
on a regular basis. 
 
 
(6) Yes, there is an instituted government policy that 
requires annual audits of receipts that fund the security 
forces. 
 
 
--------------------------------------------- --------------- 
B. The Military Budget and On-budget and Off-budget Revenues 
and Expenses 
--------------------------------------------- --------------- 
 
 
(1) The country's security budget is contained within the 
budgets of the Ministry of Government and Justice (MOGJ) and 
the Ministry of the Presidency (MOP), the two institutions 
responsible for the country's security forces.  The MOGJ 
oversees Panama's National Police Force, the National 
Maritime Service, and the National Air Service.  The MOP 
oversees the Institutional Protection Service and the Public 
Security and National Defense Council. 
 
 
(2) To post's knowledge, there are no/no significant 
off-budget military receipts. 
WATT 

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