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### Viewing cable 04PANAMA1764, PANAMA: PRESIDENT-ELECT TORRIJOS PUSHES

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04PANAMA1764 | 2004-07-09 21:01 | 2011-05-29 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Panama

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 03 PANAMA 001764

    SIPDIS

    SENSITIVE

    DEPARTMENT FOR WHA/CEN/BRIGHAM

    E.O. 12958:N/A
    TAGS: PGOV PREL PM POL SPECIALIST
    SUBJECT: PANAMA: PRESIDENT-ELECT TORRIJOS PUSHES
    CONSTITUTIONAL REFORM - HIS WAY

    Summary: Extraordinary sessions and hot debate
    --------------------------------------------- -
    ¶1.  (SBU) In a surprise move, President Moscoso ordered
    "extraordinary sessions" of the Legislative Assembly to
    discuss constitutional reform.  The move drew cheers from
    some civil society groups and criticism from those like
    former president and second-place 2004 candidate Guillermo
    Endara who favor convoking a constituent assembly
    (constituyente).  By signing Executive Decree No. 68 on June
    30, 2004 to officially call for extraordinary legislative
    sessions from July 5-20, President Moscosos surrendered
    major ground to Torrijos and the PRD.

    ¶2.  (SBU) President-Elect Martin Torrijos held a June 18
    press conference to announce that his party, the Democratic
    Revolutionary Party (PRD), would propose a package of
    constitutional reforms to the Legislative Assembly.  Since
    the Moscoso administration and its allies currently control
    the Legislative Assembly, Torrijos had to convince Moscoso
    during a June 21 meeting to convoke the extraordinary
    sessions.  Moscoso had announced earlier that there was no
    time to discuss such reforms and pro-Administration
    legislators had also told Poloffs there seemed to be no
    interest in the GOP or the opposition PRD to discuss them.

    ¶3.  (SBU) Critics, first among them civil society
    representatives, have taken issue with several of the
    reforms that the PRD has proposed.  The PRD's chief
    political opponent, the Arnulfista Party, has followed suit.
    President Moscoso, also Arnulfista Party President, has only
    "accepted" Torrijos' proposal inasmuch as she agreed to
    order the legislature to review it.  Most recently,
    President Moscoso delivered a short televised message asking
    Panamanians to remain alert to ongoing legislative debate.
    While some of the PRD's proposed reforms have merit, others
    appear to be driven by political expediency.  In any event,
    we share public (and PRD) skepticism that President Moscoso
    is truly committed to pushing through these reforms before
    she leaves office on August 31.  End Summary.

    The package
    -----------
    ¶4.  (SBU) The 90-page document that PRD Legislator Jerry
    Wilson submitted proposes extensive amendments to Panama's
    constitution.  After offering initially positive feedback on
    Torrijos' announcement, local lawyers, including a former
    Supreme Court Justice, and pro-administration legislators
    quickly labeled some reforms "dangerous" for the democratic
    system.  Though the PRD (Torrijos included) assured that the
    reforms were open to debate, several proposed reforms have
    raised eyebrows and called the PRD's "good faith" into
    question with Panamanian observers.

    The process
    -----------
    ¶5.  (U) Pursuant to Article 308 of Panama's Constitution,
    the PRD-proposed constitutional reform package will be
    discussed during three rounds of debate by the entire
    legislature (rather than in small committees like other
    bills).  Before official presentation to the entire
    legislature, the legislature's Government Committee heard
    concerns from political party and civil society
    representatives as well as former government officials who
    oppose certain elements of the proposed reform package.
    Amending the bill is authorized during first and second
    debates, but the third round of debate will be limited to a
    yea or nay vote.  If approved, the bill will be published in
    the Official Gazette.

    ¶6.  (U) If passed by this legislature, after the new
    administration and incoming legislators take office on
    September 1, then-President Torrijos would need to send the
    bill back to the Legislative Assembly within the first five
    working days.  The new legislature would have the
    opportunity for another yea or nay vote after a single round
    of debate.  If approved by both (outgoing and incoming)
    legislatures, the bill must be published in the Official
    Gazette within the next ten working days after executive
    ratification so that it may enter into effect.

    The fundamentals
    ----------------
    ¶7.  (U) The proposed reform package included:
       -Reducing the number of Vice Presidents from two to one;
       -Reducing the number of legislators from 78 to 67
    (current Constitution stipulates one seat for every 30,000
    inhabitants);
       -Restricting parliamentary immunity (no immunity for
    legislators in civil or labor matters);
       -Reducing the number of legislators' alternates
    (suplentes) from two to one;
       -Allowing independent candidates to run for legislative
    seats (electoral law currently mandates that legislative
    candidates must be nominated by political parties);
       -Increasing professional pre-requisites for legislative
    candidacies;
       -Establishing a mandatory referendum for Canal expansion;
       -Reducing the transition period between election and
    inauguration from four to two months;
       -Eliminating centralized, pre-disbursement control of
    government expenditures (control previo);
       -Allowing number of Supreme Court Justices to be defined
    by legislation instead of the constitution;
       -Establishing a mechanism for convoking a constituent
    assembly to enact future constitutional reforms;
       -Making the Electoral Tribunal's budget independent;
       -Enforcing the de-centralization of municipalities;

    The Controversy
    ---------------
    ¶8.  (SBU) Some elements of the PRD proposal have generated
    heated public debate.  Detractors accuse the PRD of ignoring
    civil society concerns that have arisen in various fora like
    the UNDP-convened dialogue "Foro Panama 2020."  Critics say
    Torrijos has proposed amendments that will impair government
    functions and threaten the democratic system.  Details of
    three controversial proposals (none of which have been
    debated yet) follow.

    ¶9.  (U) ELIMINATING "CONTROL PREVIO":  Article 276 of
    Panama's Constitution grants the Comptroller General (CG)
    the discretion to decide when to implement pre and post-
    disbursement controls on government expenditures.  This
    authority has allowed CGs in the past to exercise what some
    consider excessive power over certain government operations.
    The PRD reform calls for a new law to classify which
    expenditures require pre-disbursement control.  Three former
    CGs from Arnulfista and PRD administrations joined forces
    with current CG Alvin Weeden to uniformly reject this
    proposal.  Professor Ruben Dario Carles, CPA Jose Chen
    Barria, Dr. Gabriel Castro, and CG Weeden visited the
    legislature's Government Committee to express their
    opposition.

    ¶10.  (SBU) APPOINTING SUPREME COURT JUSTICES:  Article 200
    of Panama's constitution divides the Supreme Court (CSJ)
    into Civil, Criminal, and Administrative Courts, each with
    three Justices.  The PRD proposal would transfer the power
    to restructure the courts to lawmakers.  Opponents claim
    that by structuring the Supreme Court based on laws rather
    than the constitution increases the danger that it would
    become over politicized.  Even some PRD lawyers have
    expressed their opposition.  One said, "if the U.S. has nine
    justices with a 250+ million population, there is no
    justification for a country with mere 2.9 million to have
    more than the current nine justices." (NOTE: President
    Moscoso has appointed five Justices to ten-year terms and
    opponents have heavily criticized four of them for being
    closely affiliated with her.  Rumors already abound that
    Torrijos plans to appoint three new justices (one in each
    court) to gain control of the court. END NOTE.)

    ¶11.  (SBU) CALLING A CONSTITUENT ASSEMBLY:  For years, civil
    society has called for direct citizen participation in the
    constitutional reform process.  Many would even prefer that
    Panama's constitution be discarded and a new one drafted
    from scratch.  Government and political party elites tend to
    oppose constituent assemblies, fearing limits to their
    control over the reform process.  Supporters of a
    constituent assembly failed to achieve the issuance of an
    additional ballot during the May 2 election that would have
    consulted voters about constitutional reform.

    ¶12. (SBU) Torrijos and the PRD are against a constituyente,
    which would hamstring the incoming administration; however,
    to appease critics they decided to include a mechanism for
    calling one in their reform package.  The PRD proposal would
    require 25% of the voting population (about 475,000 people)
    to sign a petition calling for a constituent assembly.
    Civil society groups want to reduce that figure to 5-10%.
    If the mechanism remains part of the reform package, the end
    figure will probably be a compromise around 15-20%.

    Comment:  A familiar tune
    -------------------------
    ¶13.  (SBU) The legislature didn't reform the constitution
    during regular sessions, which ended June 30, and prospects
    appear just as tough now.  Neither President Moscoso nor the
    27 legislators who lost their re-election bids have a strong
    political incentive to promote the PRD-sponsored bill.
    Arnulfistas might even get more mileage by opposing PRD
    proposals under the pretext of "ensuring adequate civil
    society participation in the process."  On the other hand,
    President-elect Torrijos has current PRD legislators working
    triple-time to build buy-in for reforms in this legislature
    and the next.

    ¶14.  (SBU) Given the outright PRD control of the next
    legislature, the greatest obstacle to passage will be
    getting the bill through this one.  A senior PRD official
    expressed concern to DCM that Moscoso has no intentions of
    supporting these reforms but instead is using this public
    debate to deflect criticism of her government's questionable
    record on good governance.  Embassy believes that some of
    the PRD's proposed reforms have merit, while others appear
    driven by political expediency.  In any event, we share
    public skepticism that the badly battered Arnulfista Party
    is really committed to pushing through this package of
    reforms, even though President Moscoso could claim some
    credit in finally carrying out her campaign pledge to reform
    the constitution.  End Comment.

    WATT

`