News
Thursday 6th February 2025.
February 5, 2025
In the first debate of the third block of reforms to the Social Security Fund (CSS) , the Labor, Health and Social Development Commission of the National Assembly rejected the increase in the retirement age proposed in Bill 163.
The Executive’s initiative proposed raising the retirement age from 57 to 60 for women and from 62 to 65 for men, a measure that generated intense debate in various sectors. Considered the most controversial point of the reform package, the adjustment was discarded at this legislative stage, although the discussion on the sustainability of the pension system remains open and new proposals are expected to be evaluated in the second debate.
One of the first to react was the director of the CSS, Dino Mon, who said that, in the next phase of the legislative process, when amendments can still be made, they will insist on the need to increase the retirement age.
The government’s proposal was to increase the age by three years in one fell swoop. Then a legislative proposal emerged, led by the ruling Realizing Goals party, to make the increase in the age progressive. This option was also welcomed by Mon.
Mon argued for his position by pointing out that the problem has a demographic and financial root. He explained that the global trend shows an increase in life expectancy and a decrease in the birth rate, which makes it difficult to sustain the pension system based on the contribution of active workers to finance retirees.
“It is a global dynamic,” he said, stressing that the pension financing crisis cannot be resolved without addressing these structural changes.
The specialist highlighted that more than 90% of countries have opted to increase the retirement age to ensure the viability of their social security systems.
In this regard, he noted that Panama cannot be an exception and that postponing the discussion would only aggravate the problem.
“We will never have enough contributors to support pensioners under a pyramid model,” he warned, emphasizing that mathematics leaves no room to avoid this adjustment.
Mon acknowledged that the measure could be unpopular, but defended its gradual implementation to minimize the impact on workers.
“I am the one who would least like to see our retirement age increased,” he said, although he insisted that the country must guarantee social protection in the future.
He also stressed that the level of funding needed to sustain pensions must be aligned with demographic changes; otherwise, he warned, the country’s development and the well-being of the population could be compromised.
In view of the imminent second discussion of the bill, Mon reiterated his position in favour of increasing the retirement age. “We have to accept that this is going to happen,” he said, emphasising the urgency of adopting responsible measures to avoid the unsustainability of the pension system.
As decided by the deputies in the first debate, the retirement age would remain at 57 for women and 62 for men, allowing workers the option of prolonging their working life if they so wish. This decision reaffirms the legislators’ refusal to raise the retirement age.
During the discussion, Article 153, related to income to the Single Solidarity Fund, was also addressed. Initially, the Government had proposed a contribution of 997 million dollars to strengthen this fund.
However, the legislative proposal seeks to increase this state contribution. Deputy Rodríguez questioned the need to increase the retirement age when, according to estimates by the Ministry of Economy and Finance (MEF), tax evasion of the ITBMS amounts to one billion dollars annually, a figure higher than the cost of maintaining the current retirement age.
He also criticised the government’s fiscal management, arguing that efficient tax collection would avoid passing on the financial adjustment to workers.
He also called for reducing unnecessary state spending and the uncontrolled growth of the public payroll, which in one month added almost 4,000 new employees and reached 4.7 billion dollars.
According to the congresswoman, this increase was a key factor in the decision of the rating agency Fitch Ratings to withdraw Panama’s investment grade in March 2024.
An operation led by the Specialized Prosecutor’s Office against Organized Crime and the National Police led to the confiscation of 32 properties, including several farms, obtained through a money laundering scheme using fake cryptocurrencies.
Prosecutors have issued arrest warrants for an Italian citizen and an American , one of whom is facing a 20-year prison sentence for his involvement in fraud.
The investigation began on January 4, 2023 after a series of activities linked to a scam involving the use of fake cryptocurrencies were discovered.
Investigations carried out by the authorities revealed that the funds obtained from the fraud were transferred and used to purchase apartments, farms and high-end vehicles.
Authorities carried out raids in the districts of San Francisco, Villa Lucre and Cerro Azul, where several properties allegedly acquired with funds obtained from cryptocurrency fraud were located.
The General Electoral Prosecutor’s Office presented a package of reforms to the Electoral Code to the Electoral Tribunal (TE) .
The document, which contains 66 amendments, establishes —among other issues— the increase of penalties for several electoral crimes.
For example, a prison sentence of 2 to 5 years is proposed for the material or intellectual authors who buy or sell their vote in exchange for money, goods, payments in kind, services or appointments in the State. Currently, the penalty is 1 to 3 years.
It also recommends imposing a prison sentence of 2 to 5 years (instead of the current 1 to 3 years) on those who falsify or alter personal identity cards, impersonate an identity, order the issuance, issue, possess, deliver or circulate false identity cards, thereby generating electoral impact.
The Prosecutor’s Office also proposes a new article that would punish with 2 to 5 years in prison those who prevent or hinder the development of a political campaign through acts of violence, manipulation, coercion or coercion.
Furthermore, it proposes penalizing with the same penalty those who, through any act, prevent or hinder the completion of a pre-candidacy or candidacy by independent nomination.
Likewise, it proposes sentences of 2 to 5 years in prison for those who use state property and resources for the benefit of or against certain pre-candidates, candidates or legally constituted or forming political parties. “This penalty will be doubled if the aforementioned use is carried out within the period in which the corresponding electoral process is open,” the project highlights.
The document, presented by prosecutor Dilio Arcia , was received by the president of the Electoral Tribunal, Narciso Arellano.
The Electoral Court will soon convene the National Commission for Electoral Reforms to begin the period of discussions on updating the Electoral Code . This commission aims to present a package of changes to the National Assembly before the general elections of 2029.
Amid pressure from Donald Trump over China’s alleged influence on the Panama Canal and the management of two of the five ports operating in the country by the Hong Kong group CK Hutchison , the Panama Maritime Authority (AMP) announced that it is carrying out inspections of all port concessions, including operators of auxiliary maritime services.
Although the agency clarified that these are regular and routine inspections, the operation also coincides with the latest measures by the Comptroller General of the Republic to conduct a second audit of the Panama Ports Company (PPC), a subsidiary of CK Hutchison that operates the port of Balboa and that of Cristóbal in Colón.
The AMP stated that the inspection was led by the acting administrator of the AMP, Alexander De Gracia, and the general director of Ports and Maritime Industries, Max Florez.
The inspection on Wednesday, February 5, included the Balboa Port Shipyard and the Panama Colon Container Port (PCC), as well as United Crown Construction Inc., which operates a concession on Margarita Island, also in Colon. In some cases, these ports are still under construction.
The agency said in a statement that the maritime transport services, water and fuel supplies, as well as the physical and structural conditions of the port facilities were inspected.
The AMP announced that it will continue with its inspection plan for the different concessionaires nationwide.
“Our obligations as an institution include the supervision of the concessions we grant, and this operation is essential to guarantee transparency, efficiency and social well-being,” stressed Acting Administrator Alexander De Gracia.
“Proper oversight not only protects public interests, but also fosters trust in institutions and promotes sustainable development,” De Gracia added.
The president of the Panama Maritime Chamber, José Digerónimo , said in an interview with La Prensa that the international pressure exerted by the President of the United States, Donald Trump, on the Panama Canal and contracts with Chinese companies generates uncertainty in the country and may also send a negative signal for attracting new investments.
Digerónimo emphasized that China does not manage the Canal, nor does it have any influence on the ships that pass through the interoceanic waterway.
He said that even for ships arriving at the country’s five ports, the Canal itself is the one that coordinates the movement and trajectory of those ships to any of the port infrastructures located at the entrance of the interoceanic route.
In this way, the president of the Maritime Chamber joins the voices that refute the arguments of President Trump, when he tries to argue that the Canal has violated the Neutrality Treaty, and that is why he will challenge its management.
Digerónimo expressed concern that the government may succumb to cancelling contracts under external pressure, which could send a negative message to future investors, making it difficult to attract foreign capital for megaprojects in the country.
He said that there is already a negative precedent with the cancellation of the mining contract with First Quantum, with which the State faces international lawsuits and arbitrations, to which can be added that of the ports managed by Hutchison Ports PPC of Hong Kong, in case a decision is made on the ports of Balboa and Cristóbal.
Our position as a Chamber of Shipping is to support the Panamanian government. The leadership in this situation is led by President José Raúl Mulino and Foreign Minister Javier Martínez-Achay, and as Panamanians we must support them.
As for the alleged Chinese influence on the Canal , I can say that it is non-existent. The Canal is 100% Panamanian- owned . Although the Hutchison Ports in Balboa and Cristobal belong to a Chinese company, their operation is fully regulated by the Panama Canal. Every ship that docks at these ports is handled by Panamanian pilots, who have full control of the vessel.
These ships do not move unless there is a Panama Canal pilot on board and that pilot takes control of the vessel. Not even the captain has control, the pilot gives direct orders to the ship’s helmsman, so if this really constitutes a threat to the operation of the Canal, I honestly do not see it.