US embassy cable - 05PANAMA2357

UNCLAS SECTION 01 OF 02 PANAMA 002357 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR WHA/CEN 
SOUTHCOM ALSO FOR POLAD 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, PM, POLITICS & FOREIGN POLICY 
SUBJECT: PANAMANIAN REACTION TO 212 (F) VISA REVOCATION OF 
SUPREME COURT MAGISTRATE WINSTON SPADAFORA 
 
REF: PANAMA 2351 
 
Summary 
------- 
1.  (SBU) On the same day that Panama's National Assembly 
Justice Affairs Committee dismissed a complaint filed by the 
NGO Alliance for Justice against eight Supreme Court justices 
for highly questionable rulings, on November 29, Embassy 
Panama delivered formal notification to Winston Spadafora 
that his U.S. visa had been revoked under section 212 (f) of 
the Immigration and Nationality Act for corrupt acts. 
Spadafora's son presented the visa for revocation on November 
30.  The Embassy made no announcement until the Public 
Affairs and Political Sections received specific questions 
from journalists and other contacts on November 30.  The 
first radio broadcast of the unconfirmed news occurred around 
mid-day on November 30.  Later that afternoon, an Embassy 
spokesman presented the basic facts to several reporters 
regarding the section of law under which the visa was 
revoked.  The next morning, December 1, all the major news 
stations and newspapers covered the story.  While President 
Torrijos said he respected the USG's sovereign right to 
revoke a visa, civil society and opposition parties peppered 
the press with demands for Spadafora's resignation and 
specific evidence of his corruption acts.  Meanwhile, 
Spadafora told the press that he is willing to face charges 
if they are made public, pointed out that he had not been 
formally accused of committing a crime, and stated his 
intention to stay at his post "until the last day." 
Revocation of Spadafora's visa underlines the Embassy's 
commitment to the fight against public corruption in the face 
of a reluctant administration.  End Summary. 
 
Spadafora's Reaction:  Mea Ain't Culpa 
-------------------------------------- 
2.  (SBU) Winston Spadafora is the highest Panamanian 
official to lose his U.S. visa due to corruption since the 
revocation of former President Ernesto Perez Balladares's 
visa five years ago.  In the face of heated public calls for 
his resignation, Spadafora has strenuously denied any 
wrongdoing, telling the press that he has "never been accused 
of corruption."  Spadafora upheld the USG right to exercise 
immigration policy, but demanded that the USG bring proof of 
his corrupt acts before a court.  (Note:  Embassy has little 
expectation that the GOP will use diplomatic channels to 
request the information.  End note.)  He refused to resign 
his position as Supreme Court magistrate.  Spadafora vowed to 
bring his case before the OAS and UN.  Ironically, he is 
suing two journalists for libel over a March 2001 story which 
alleged corruption on his part in the construction of a road 
past his ranch in Chorrera with public funds. 
 
"The U.S. did what our own government wouldn't" 
--------------------------------------------- -- 
3.  (SBU) Civil society's reaction to the revocation is 
overwhelmingly positive.  One day after news of the 
revocation leaked, Panama's two major newspapers, Panama 
America and La Prensa, ran front page stories about it, 
relegating articles about President Torrijos's trip to Havana 
to the inner pages.  A La Prensa editorial supported the U.S. 
decision and derided the "existing pact among local 
politicians" which hinders the pursuit of corruption among 
public officials.  Echoing public frustration about the 
government's disinclination to investigate and prosecute 
corruption cases, the same editorial also called "painful" 
the intervention by a foreign government into acts that 
"should have been investigated and punished in Panama." 
National Bar Association President Mercedes de Grimaldo 
expressed sentiments similar to the editorial. 
 
Smiling and Biting their Tongues 
-------------------------------- 
4.  (SBU) In general, leaders of civil society and government 
officials have made careful statements supporting the right 
of the USG to issue or revoke one of its visas.  Solidarity 
Party legislator Marilyn Vallarino smiled broadly when 
stating her support for the sovereign right of the USG to 
revoke Spadafora's visa.  Under Panama's criminal libel laws, 
individuals cannot make a public accusation or imply that 
they assume someone's guilt without evidence of its veracity. 
 For this reason, most individuals who have spoken publicly 
about the revocation have qualified their statements as not 
supporting an assumption of corruption. 
 
5.  (SBU) Anti-corruption Front spokesman Enrique Montenegro 
called the revocation "good news."  Panamanian Association of 
Business Executives (APDEDE) President Enrique De Obarrio 
said the revocation indicated a "perception of corruption in 
the Court," while other officials mentioned the questionable 
circumstances and public controversy surrounding Spadafora's 
nomination to the Court.  (Note:  Spadafora's nomination is 
linked to charges of bribery and public corruption within the 
then-Moscoso administration and the National Assembly.  End 
note.)  Democratic Change Party President Ricardo Martinelli 
asked Torrijos to take "concrete actions and ask for the 
resignation of all nine justices," while  Solidarity Party 
president Jose Raul Mulino asked Spadafora to resign. 
Democratic Revolutionary Party (PRD) legislator Elizabeth de 
Quiros was skeptical that proof of corruption existed but 
added that it was not the part of another country to take 
action on behalf of Panama.  The Panamenista Party, the party 
responsible for Spadafora's nomination to the Court, has been 
notably silent.  It is not the PRD, but the smaller 
opposition parties leading the vocal charge against Spadafora 
and Court corruption. 
 
GOP Reaction:  Damage Control 
----------------------------- 
6.  (SBU) On December 1, in an effort at damage control, 
Justice Affairs Committee Chairman Freidi Torres called the 
Embassy seeking a meeting with Ambassador Eaton to explain 
the committee's decision to dismiss the complaint against the 
justices.  (See Reftel.)  President Torrijos, who was elected 
on a "zero corruption" platform, attempted to remove the 
spotlight from a corrupt individual and signaled his lack of 
interest in seeking a prosecution or a resignation.  La 
Prensa on December 2 noted Torrijos arguing that the problem 
of corruption in Panama "goes far beyond individuals," is 
pervasive and "requires the force of all to bring about a 
transformation."  Although it is unlikely that the revocation 
of Spadafora's visa will spur the Torrijos administration 
into action, the public overwhelmingly supports active 
pursuit of public corruption. 
 
Comment 
------- 
7.  (SBU) Torrijos's characterization of Panamanian society 
as being pervasively corrupt probably indicates that he will 
remain passive and indecisive as exemplified by his creation 
of the Justice Commission, after Court magistrates hurled 
mutual accusations of corruption at each other earlier this 
year.  One significant positive development of the visa 
revocation has been the repeated requests for concrete 
evidence by civil society and opposition parties who cannot 
legally make statements that assume Spadafora's guilt. 
Unfortunately, as noted above, the GOP is not likely to 
request a look at the evidence through official channels. 
Though the U.S. cannot otherwise release the confidential 
information that justified the revocation, the action has 
brought to the forefront a wave of keenly interested parties 
who would use the revocation as a stepping stone for change. 
Previously, evidence in high-profile cases of corruption 
remained under the control of the Court and National Assembly 
to do with as they saw fit.  The revocation has provided 
civil society with a near-smoking gun of Spadafora's corrupt 
acts, placing the issue of unaddressed Court corruption 
squarely in the public realm under the auspices of 
international pressure to hold accountable corrupt public 
officials. 
 
ARREAGA