US embassy cable - 05PANAMA1930

UNCLAS SECTION 01 OF 04 PANAMA 001930 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR WHA/CEN/SCHIFFER AND INR/B 
SOUTHCOM FOR POLAD 
 
E.O. 12958:N/A 
TAGS: PGOV, PREL, PINR, PM, POL SPECIALIST 
SUBJECT: PANAMA'S "COSMETIC" CABINET RESHUFFLE. 
 
 
Summary 
------- 
 
1.  (SBU) The long-awaited GOP "re-organization," rumored 
since last April, was finally announced by President 
Torrijos on Saturday, September 3.  Despite high 
expectations for in-depth Cabinet changes, in the end, just 
as GOP Embassy contacts predicted, changes were minimal, 
leading many in the opposition to label them as "merely 
cosmetic." (Note: a July 2005 Dichter and Neira poll showed 
that 7 out of 10 Panamanians wanted Torrijos to make major 
changes in his cabinet).  Only two Cabinet members, four 
Vice ministers and some national-level directors were 
replaced.  The most important changes affected the 
Panamanian National Police, Customs and the Immigration 
Directorate --all law enforcement agencies.  The rest of the 
changes were reshuffles within the government with the 
arrival of newcomers who either have ties to the President 
or to his Democratic Revolutionary Party (PRD).  Although 
Torrijos could announce further changes, his "re- 
organization" will not convince many Panamanians that 
Panama's government now will move easily to solve what they 
believe are the country's paramount problems: unemployment, 
violent crime and, corruption.  End summary. 
 
Panamanian National Police (PNP) 
-------------------------------- 
2.  (SBU) Prior to making most of his appointments public, 
on August 23, President Torrijos announced that Vice 
Minister of Finance Rolando A. Mirones, Jr. would become the 
new PNP Director General replacing Gustavo Perez.  The GOP 
held the change of command ceremony on September 5.  Despite 
numerous rumors about who would replace Perez, Mirones was a 
surprise choice.  Discipline ruled within the GOP's inner 
circle, which successfully protected the identity of the 
nominee.  For over a month before his appointment, Mirones 
had been attending security trainings below the radar of a 
vigilant media.  Mirones is a tax lawyer, whose only 
previous public position before serving as Vice Minister of 
Finance (2004-2005) was as Internal Revenue Director under 
the Perez Balladares Administration (1994-1999).  A Torrijos 
insider told EmbOff that Mirones had been chosen "for being 
a tough guy and a loyal one." 
 
3.  (SBU) During the 2004 presidential campaign, Mirones was 
a constant TV guest personality defending the Torrijos 
candidacy and the "new" PRD platform.  A young but balding 
lawyer, who the press nicknamed "Kojak," Mirones is 
notorious for his bad temper, sarcasm and lack of patience. 
During his year as Vice Minister of Finance, Mirones 
submitted several formal complaints before the Public 
Ministry on corruption cases committed by the previous 
administration.  Unfortunately, his rush to submit 
complaints produced sloppy work.  Improper legal formats led 
to dismissal of several cases by the courts.  Mirones' tough 
stance on enforcing the Torrijos administration's February 
2005 fiscal reforms gained him plenty of enemies among the 
business and professional communities.  Mirones' list of 
achievements as Vice Minister of Finance for a year include 
uncovering and transferring for prosecution over 100 illegal 
vehicle exonerations; uncovering a network of corrupt 
employees from the internal revenues directorate, and 
identifying five relatively unknown law firms involved in 
fraudulent requests for property tax exonerations. The 
public has high expectations for new PNP Director General 
Mirones as crime rate has increased and he is expected to do 
something about it soon. 
 
4.  (SBU) During Mirones' change of command address, he said 
that he would manage the PNP "rigorously, with discipline, 
honor and transparency."  It is still to be seen if, as PNP 
Director General, Mirones does not favor his father-in-law's 
well-known restaurant "Jimmy's steakhouse" in the PNP 
biddings for procurement of meals. (Note:  The PNP has 
approximately 15,000 agents and its current food provider, 
Niko's Caf, collects about $2 million every eight months. 
End note.) 
 
5.  (SBU) Orcila Vega de Constable, formerly Director of the 
Financial Analysis Unit (overseeing suspicious bank 
transactions), was appointed Vice Minister of Finance to 
replace new PNP Director General Mirones.  Constable has 
long ties with the PRD and was appointed with the influence 
of First Lady Vivian de Torrijos, a close friend of hers. 
Constable is a lawyer with a master's degree in maritime 
law.  Constable served as a public employee for over 20 
years at the former Ministry of Treasury (now Ministry of 
Finance). 
 
 
Customs 
------- 
6.  (SBU) New Customs Director Daniel Delgado Diamante 
(nicknamed by the media "3D") arrives at the Customs 
Directorate after his attempts to have a Vice Ministry of 
Public Security created, which he would head, were 
unsuccessful.  Delgado is a former Panamanian Defense Forces 
(PDF) Colonel, who got a law degree after the U.S. invasion 
of Panama.  Delgado is what some Panamanians refer to as 
"recycled soldier," active in the governing PRD, who 
successfully reinserted himself into society after his 
military past.  Delgado moves to Customs Director from the 
Ministry of Foreign Relations (MFA), where he served as 
Secretary General since September 2004, a position he held 
 
SIPDIS 
during the PRD Perez Balladares administration (1994-1999). 
One of the PRD's security "experts", Delgado's widely 
rumored "deepest desire" is to become PNP Director General. 
Despite his recycling into civil society, Panama's PNP law 
prohibits former soldiers to head the PNP.  Many believe 
Delgado's "military personality" is probably an asset for 
managing Customs, an office with many internal procedural 
and corruption problems.  One of Delgado's first duties will 
be to oversee the transference of the Customs Directorate 
from the Ministry of Finance to the Ministry of Government 
and Justice.  Delgado has been an Embassy contact for many 
years and has already expressed his intention to continue to 
work with the Embassy in his new capacity. 
 
7.  (SBU) Delgado replaces Julio Kennion (Sept 2004-Sept 
2005).  In Kennion's case, Embassy contacts reported that he 
was not working out within two months of his appointment in 
September 2004.  Kennion has been assigned a low-profile 
position in the Presidential Palace. 
 
National Security Advisor (Consejo) 
----------------------------------- 
8. (SBU) Torrijos' loyal follower, supporter, employee, and 
political confidant Leonel Solis is the new Executive 
Secretary at the Council for Public Security and National 
 
SIPDIS 
Defense, known as the Consejo.  Solis is a hardcore PRD 
member who has worked with Torrijos since Torrijos was Vice 
Minister of Government and Justice under the Perez 
Balladares administration (1994-1999).  A straight talker, 
Solis says what he thinks and is not afraid of defending his 
point of view.  Before being appointed at the Consejo, Solis 
had served as Director of the Instituional Protection 
Service (SPI), Panama's equivalent to the Secret Service, 
whose offices are located at the Palace.  From his position 
as SPI Director, Solis was able to keep a low profile with 
little public exposure, which allowed him to do private 
political work for Torrijos. 
 
9.  (SBU) Solis was considered by many to be a "natural" 
to replace Gustavo Perez at the PNP, yet Solis always told 
EmbOffs that he was lobbying not to get the PNP Director 
General's position for several reasons, the most important 
one being his bad relationship with Minister of Government 
and Justice Hector Aleman, who would have been his 
immediate supervisor at the PNP.  Once at the PNP, Solis 
would have bypassed Aleman and reported directly to 
President Torrijos.  Aleman would have found that hard to 
accept --probably a reason for Solis's appointment to the 
Consejo. 
 
10.  (SBU) Although the Consejo's main offices are located 
about 10-15 minutes away from the Palace, Solis has kept an 
office near the Palace to keep himself close to the action. 
 
11.  (SBU) Solis replaces Javier Martinez Acha, Torrijos's 
college roommate at Texas A&M and the godfather of 
Torrijos's daughter.  Martinez Acha reportedly had 
escalating personal and professional disagreements both with 
Torrijos and First Lady Vivian Torrijos.  Torrijos 
repeatedly proposed appointing Martinez Acha as General 
Manager of the state-owned savings bank, Caja de Ahorros, 
only to refuse final confirmation of the appointment due to 
their constant frictions. 
 
Immigration 
----------- 
12.  (SBU) Ricardo Vargas' appointment as new Immigration 
Director was another surprise.  Vargas had been Panama's 
Ombudsman's First Alternate since 2002.  An active member of 
the governing PRD, Vargas is a young lawyer who belongs to 
the PRD's "new" face, but whose family has ties to 
"hardcore".  During his time as Ombudsman's First Alternate, 
Vargas specialized in monitoring prison conditions and 
reporting on the former government's human rights 
violations.  Ombudsman Juan A. Tejada and most of his staff 
are Partido Popular members (former Christian Democrats), 
and many times had disagreements with Vargas, who they 
considered overly critical of the Moscoso administration. 
Ombudsman Tejada was known for raising public awareness of 
corruption under the Moscoso administration, but also was 
willing to give her credit for her accomplishments. 
 
13. (SBU) Vargas replaces Ramon Lima, who was forced to 
leave the Immigration Directorate after media reported that 
his law firm, specifically his lawyer daughter, was 
conducting immigration business before his office as 
Director General.  Despite the obvious conflict of interest, 
Lima clung to his position and insisted that there were no 
wrongdoings.  Finally, forced by a private message from 
President Torrijos to leave, Lima stepped out. 
 
Cabinet changes -- Education 
---------------------------- 
14. (SBU) Ministry of Education Juan Bosco Bernal and 
Minister of Social Development (MIDES) Leonor Calderon were 
the only Cabinet members replaced.  Bernal took the blame 
for not being able "to control" striking teachers 
associations during the CSS (social security) demonstrations 
and strike in May and June 2005.  Bernal will go back to 
teaching at the University of Panama, though there are 
rumors that he has been offered an ambassadorship.  Bernal 
was replaced by his former deputy, Miguel Angel Caizales, a 
former head of Panama's Council of Rectors. 
 
Social Development 
------------------ 
 
15. (SBU) According to rumors, MIDES Minister Calderon had 
long been frustrated by frictions with the First Lady's 
Office over social issues and was apparently forced out by 
the First Lady.  MIDES follows children, women, family, 
youth, disabilities and adoption issues, many of them 
favorite topics of Mrs. Torrijos, who usually takes the 
lead.  As a MIDES office director recently told EmbOffs, 
"the First Lady's Office should assist us, should support 
us, because we are the ones who execute the plans not they. 
Mrs. Torrijos does not want to understand that."  As a 
result of Calderon's departure, a Ministry Director and a 
senior psychologist have threatened to depart.  Calderon, a 
loyal PRD activist with a good reputation within her party 
and within local NGOs would not have willingly left her 
position.  Torrijos appointed her as Palace Coordinator for 
International Cooperation, a position specifically created 
for her. 
 
16. (SBU) Calderon was replaced by Maria Roquebert, who will 
took office on September 15, 2005.  Roquebert was called 
back from Germany were she was serving as Panama's 
ambassador since March 2005.  Before her appointment as 
ambassador, Roquebert worked for Germany's Frederick Ebert 
Foundation, where among others, she served as regional 
director for Latin America.  Roquebert is the sister-in-law 
of Jorge Eduardo Ritter, a close advisor of President 
Torrijos. 
 
Comment 
------- 
17. (SBU) President Torrijos disappointed the Panamanian 
public with his long-awaited Cabinet changes because they 
turned out to be a mere reshuffle with no change in 
government plans or strategies.  Many Torrijos supporters 
hoped he would make bold changes during the May-June Social 
Security (CSS) reform crisis.  They never materialized. 
Internal critics have drawn attention to the GOP's feeble 
public relations apparatus and have called for the 
appointment of a professional public relations/ 
communications chief.  Another evident issue is Torrijos's 
apparent unwillingness to confront his ministers, even when 
they are widely seen as ineffective or counter-productive. 
Instead of confronting the people in his government who 
impede his efforts, Torrijos prefers to reward them with 
consolation prizes such as positions created within the 
Presidential Palace.  Many observers wished that Torrijos 
had announced in-depth changes well before his September 1 
address to the National Assembly, so that he could have 
publicly addressed his new plans with his new 
administration.  That did not happen.  Instead he waited 
until September 3, a Saturday, during his visit to the tiny 
town of Tole in the western province of Chiriqui to make the 
formal announcements. 
 
Arreaga