Friday
Friday 4th April 2025.
April 3, 2025
President José Raúl Mulino announced this Thursday, April 4, that his government would seek to reduce the fiscal deficit of the Non-Financial Public Sector (NFPS) from 7.3% to 4% during 2025, a process that the president described as “painful for the public sector.”
According to the Fiscal Balance of the Ministry of Economy and Finance (MEF), as of December 31, 2024, this 7.3% deficit represents approximately $6.416 billion that the treasury needs to balance income and expenses, a situation that the government would seek to gradually resolve by reducing the deficit to 4% , that is, to approximately $3.516 billion.
Although the president did not detail what strategy they would implement to achieve deficit reduction, he did signal that some type of cutbacks in the public sector could be made.
During his Thursday press conference, the president distanced himself from “public job board” programs or emergency employment programs in state entities, but instead favored incentivizing the private sector to boost the economy , particularly through infrastructure projects.
Previously, the Mulino administration attempted to cut government budgets when it presented the General State Budget for the 2025 fiscal year. The budget was rejected for failing to comply, among other things, with the Fiscal Responsibility Law and the legally mandated fixed contributions to the Ministry of Education and state universities.
To strengthen fiscal sustainability in the short and medium term, the MEF detailed various actions in its Fiscal Balance, such as spending containment in the Central Government and decentralized institutions.
The president also noted that the General Directorate of Revenue (DGI) is already conducting operations to verify tax collection , particularly the Tax on the Transfer of Movable Property and Provision of Services ( ITBMS ).
Mulino explained that of the 2,297 businesses visited for verification, 66% were found to be in default on their ITBMS payment, and fines have been imposed on businesses that do not comply with this obligation.
“If we want to strengthen revenue collection so there’s money in the budget and we can move forward with projects, it’s only through collecting taxes . I’m not proposing any way to create new taxes; it’s through creating a national network with the DGI (General Directorate of Public Administration) to oversee and collect taxes,” Mulino said.
Although direct taxes represent a major source of revenue for the state, the president only referred to strengthening the collection of the ITBMS , which is an indirect tax. Indirect taxes represent approximately $1 billion less revenue than direct taxes. These direct taxes include payments by legal entities, individuals, as well as taxes on the transfer of real estate and business operation notices.
The first judge in charge of liquidating criminal cases, Águeda Rentería , issued an acquittal verdict in favor of the eight defendants, including the former Minister of Public Works, Federico Suárez , for the crime of embezzlement, for the design and construction of the Arraiján-La Chorrera Highway .
Through judgment No. 3, issued this Wednesday, April 2, Judge Rentería decreed the acquittal of all those involved , after determining that the Anti-Corruption Prosecutor’s Office failed to prove the responsibility of those involved in the commission of the crime under investigation.
“With regard to the crime of embezzlement, it has not been possible to conclusively prove the existence of harm to the State, despite the reprehensible actions that occurred. It is important to remember that the burden of proof falls on the Public Prosecutor’s Office, and in accordance with the principle of the presumption of innocence, any reasonable doubt must be resolved in favor of the accused,” the ruling states.
The ruling, which was announced Thursday morning, also states that the aforementioned project was completed through the execution of the performance bond.
In addition to Suárez, those acquitted in this case include the legal representative of the company Transcaribe Trading (TCT), Daniel Ochy , Eder Márquez, Eduardo Rodríguez, Lester González, Alcides Velásquez, Miguel González and Marcos Saavedra.
In the trial held on February 29, 2024, anti-corruption prosecutor Ariel De Gracia had requested a guilty verdict for the defendants, considering that they caused property damage amounting to $7.8 million.
The Superior Court for the Settlement of Criminal Cases overturned a ruling issued by the First Court for the Settlement of Criminal Cases and sentenced a group of 22 former officials of the National Customs Authority to 32 and 40 months in prison for the crime of corruption.
By means of Edict No. 359 posted in said court last Wednesday, the parties are informed of the decision taken by the Superior Court for the Settlement of Criminal Cases to sanction the former officials with the aforementioned penalties and also to order their suspension from public office for the same term as the principal penalty imposed.
The 52-volume investigation, which began in 2015, established that customs officials facilitated the entry of goods into the country without paying taxes.
The investigation also revealed that the officials operated jointly to obtain financial benefits from the irregularities committed.
The investigation included a review of bank accounts and assets acquired by the officials with money obtained from their illicit activities.
Judicial sources explained that the sentences imposed can be replaced by fines or community service, but they must be processed before a court of law.
The President of the Republic, José Raúl Mulino , said that Panama is waiting for the sale of the concession for the ports of Balboa and Cristóbal to be finalized .
“We’ve been in communication with all three parties: two buyers and the seller, and everything indicates that this will move forward. When that happens, we’ll be informed because that decision must be approved by Panama, as the contract and the law stipulate,” Mulino stated at his weekly press conference.
A month ago, the Hong Kong consortium CK Hutchison announced the commitment to sell at least 40 ports in 23 countries to the American investment group BlackRock .
Among these ports are the Panamanian ports of Balboa and Cristobal , which are currently operated by Panama Ports Company, a subsidiary of Hutchison.
Mulino said that to date, there isn’t much financial or legal information available because the deal hasn’t been finalized.
“My advisory team is exploring various possibilities for this once the transaction closes.”
The deal was expected to close on Wednesday, April 2 , but international media reported that the Chinese government was reviewing the transaction and was even asking Hutchison’s owners to finalize the sale.
The transaction is valued at nearly $23 billion , and no news has been reported regarding the eventual signing of the deal.
On the other hand, Mulino stated that the Silk Road agreement with China is closed and will not be revised.
President José Raúl Mulino ruled out any possibility that the Nicaraguan government had proposed a “quid pro quo” regarding the delay in the trip of former President Ricardo Martinelli , who had sought asylum in that country.
The president, who in the past called Nicaragua “a country without God or law ,” this time moderated his speech when referring to the nation governed by the regime of Daniel Ortega and his wife Rosario Murillo.
“They haven’t asked me for anything,” the president said, referring to statements by Co-President Rosario Murillo, who accused the Panamanian government of hostile behavior and blocking Nicaragua’s participation in the General Secretariat of the Central American Integration System (SICA) .
According to Mulino, there is no exchange of favors or political pressure. In other words, he ruled out ” blackmail” on the part of that country, as lawyers, internationalists, and other stakeholders have called it.
He also clarified his government’s position regarding its abstention from supporting the motion against Nicaragua in the SICA.
According to Mulino, the organization uses consensus as a decision-making method, so Panama’s decision “does not imply a blockade of Nicaragua,” but rather an opportunity for the Central American country to present a new list of candidates.
“I hate it (consensus), because if there’s a majority, the majority must be respected. But well, the modus operandi isn’t new; consensus always serves to make someone drag their feet, and then the decision isn’t made,” the president said.
Men dressed in camouflage and carrying large backpacks outside a hotel on Balboa Avenue. This is part of what can be seen in a photograph that has circulated on social media in recent days. The image has raised many questions.
Security authorities have provided clues on the matter. The unusual military deployment corresponds to the United States Armed Forces.
The National Aeronaval Service (Senan), in a statement, reported that Panama and the United States are currently conducting the joint exercise Panamax 2025, “focused on the protection and security of the Panama Canal against potential threats.”
These maneuvers are organized by the United States Southern Command and involve security forces from several countries. More than 20 nations from Latin America, the Caribbean, and Europe have participated in various editions. The exercises include simulations of naval, air, and land operations.
The U.S. Embassy in Panama recently announced that four helicopters and two U.S. Southern Command aircraft will be in Panama from March 24 through mid-April to conduct joint security exercises with the Ministry of Security , as well as to participate in humanitarian assistance programs in remote areas.
A few weeks ago, it was announced that Southern Command forces signed an agreement establishing a framework for long-term collaborative training of Panamanian security forces.
U.S. Secretary of Defense Pete Hegseth is scheduled to arrive in Panama on Monday, April 7, for high-level meetings with the country’s authorities. His agenda includes a meeting with President José Raúl Mulino, where they will discuss security and defense cooperation.
Additionally, he will visit the National Aeronaval Service (Senan) base, tour the Panama Canal locks, and travel to Fort Sherman in the province of Colón, a strategic location in the Atlantic region.
Activities will begin on April 7, when Rodman Naval Base will host an official reception in honor of the commander of the U.S. Southern Command, Alvin Holsey. The event will bring together local authorities and representatives of the security sector, although it will not include the presence of the Secretary of Defense, who will arrive in the country that same day for his official agenda.
April 8th will begin with a meeting between the Secretary of Defense and the president in the morning, followed by a tour of the Canal watershed. At noon, the official will visit the National Aeronaval Service (Senan) base and, at 2:00 p.m., will travel to Fort Sherman in Colón.
That evening, at 8:00 p.m., he will attend a reception with the region’s security ministers. The following day, he will participate in the Regional Security Summit, to be held in Panama City, where cooperation strategies will be discussed with representatives from each country in the region.