News
Tuesday 11th February 2025.
February 10, 2025
The National Assembly’s Economic and Finance Committee approved in its first debate bill 186, an initiative that seeks to transfer funds of 91.6 million dollars to the Disability, Old Age and Death Program (IVM) of the Social Security Fund (CSS) .
With an estimated deficit of 22% for 2025 , the bill aims to ensure the payment of pensions in February, while the National Assembly discusses bill 163, which proposes reforms to the CSS.
Although Bill 163 was introduced on November 6, 2024 and called for discussion in extraordinary sessions until December 31 of the same year, to date no reform has been approved to solve the system’s financial deficit.
The funding deficit has so far been managed with the subsystem’s reserves, but it is expected that, in 2025, the economic benefits to cover pensions will amount to 2,748 million balboas. However, the available reserves will not be enough to cover 100% of pensions, and a deficit of 615.7 million balboas is estimated, which represents 22% of the necessary funds. This situation puts the financial stability of the system and the guarantee of decent pensions for beneficiaries at risk.
During his speech before the Economic Commission, the Minister of Health, Fernando Boyd, defended the urgency of approving Bill 186, which seeks to guarantee the necessary funds to cover the payment of pensions in February 2025.
Boyd recalled that the deficit of the Disability, Old Age and Death Program amounts to 22% , which represents a shortfall of 615.7 million balboas, a figure that puts the stability of the system at risk.
According to him, the immediate objective is to ensure the transfer of 91.6 million balboas to cover the needs for the month of February, while the debate on the modification of the Organic Law of the CSS continues.
“This project responds to an urgent need,” the minister stressed, underlining the importance of the measure to ensure continued access to a decent pension for thousands of retirees.
The debate in the Economic and Finance Committee was opened after the minister’s intervention, with the participation of the commissioners, who analyzed the proposal in the context of the financial crisis of the pension system. Finally, the deputies gave their approval to the bill.
Boyd expressed hope that, once the amendments to the Organic Law of the CSS are approved, the problem of the deficit will cease to be a recurring discussion in the Assembly. “Let us hope that this issue remains in the past,” he said, appealing to the legislative will to speed up the process.
The discussion in the National Assembly continues, with the expectation of reaching a definitive solution that guarantees the stability of the pension system and provides security to the beneficiaries.
The Central American Parliament (Parlacen) has chosen to ignore the request for the swearing-in of former Panamanian President Laurentino Cortizo and former Vice President José Gabriel Carrizo.
Traditionally, the organization has given former presidents a place as regional deputies, granting them privileges and immunities . Therefore, the lack of response in this case has raised questions in the political arena.
Cortizo and Carrizo requested their swearing-in before the Parlacen last year, but to date the organization has not included the issue in its agenda.
The lack of definition has generated conflicting positions, even among the Panamanian deputies who make up Parlacen.
Some defend the right of former presidents to occupy a seat, while others maintain that the issue is not a priority at the moment.
Carlos Outten, a deputy for Realizing Goals (RM) and vice president of the International Relations Commission of Parlacen, confirmed that the swearing-in of Cortizo and Carrizo is suspended until further notice and that it does not appear as a priority on the agenda of the international organization.
However, Dorindo Cortez, also a Parlacen deputy for RM, expressed his concern about the lack of swearing-in of the former president and the former vice president, stressing that this is a right of the former presidents and an obligation of the organization.
Cortez questioned why the process has not been carried out and pointed out that the Political Steering Board of Parlacen has the responsibility of including the issue on the agenda, something that has not happened so far.
Last October, eight deputies from the Panamanian Parlacen group spoke out against the request for the swearing-in of Cortizo and Carrizo, calling it an “inappropriate and unfortunate claim” for the country. However, they clarified that they do not ignore the right that both have, according to the Constitutive Treaty of Parlacen.
However, they stressed that Panama faces important political, social and economic challenges that require transparency and accountability.
As you may recall, on October 17, lawyer and former ambassador Guillermo Cochez filed a criminal complaint against Cortizo for the alleged commission of a crime against public administration in the form of embezzlement. According to him, the complaint is related to the disbursement of at least 711,288.64 dollars to pay for bariatric surgeries for 46 people during the previous administration.
That same day, former attorney general Javier Caraballo reported that his office has two complaints against Carrizo.
A request for a replacement sentence will be presented this Tuesday, February 11, before a judge of compliance by the defense of Silvana Manzini de Obarrio , sentenced to 48 months in prison for unjustified enrichment and money laundering.
Judicial sources confirmed that his lawyers requested a hearing to commute the 48-month sentence to a fine.
De Obarrio reached an agreement with the prosecution in the case against his son, Adolfo “Chichi” de Obarrio , also charged with unjustified enrichment and money laundering.
The sentence imposed is divided into two sanctions of 24 months each: the first, for unjustified enrichment, and the second, for money laundering, in both as a primary accomplice.
At the hearing on November 20, 2024, the first liquidator of criminal cases, Águeda Rentería , validated the agreement, but her defense attorney, Eduardo Sequeira, requested the commutation of the sentence to days-fine. However, the judge explained that this request must be submitted to a compliance judge.
Adolfo “Chichi” de Obarrio, who was private secretary to former President Ricardo Martinelli (2009-2014) , left Panama in December 2014.
This process began after an audit by the Comptroller General of the Republic , which revealed that De Obarrio could not justify three million dollars in his assets.
As part of this investigation, the prosecution ordered the seizure of two properties belonging to De Obarrio in Punta Barco and San Carlos, in West Panama, as well as two other properties in the district of San Francisco.
De Obarrio also faces a 120-month prison sentence for the Blue Apple case , in which he was also ordered to pay $5,091,486.92 to the National Treasury, an amount that must be paid within 24 months after serving his main sentence.
Minera Panamá’s suppliers have expressed, through a letter, their concern about the economic and social impact generated by the cessation of operations at the mine located in Donoso, Colón province.
The letter, which has already been sent to the President of the Republic, José Raúl Mulino , highlights the seriousness of the situation after seven months have passed since the first call made by the businessmen in July 2024.
According to suppliers, the number of affected companies has increased, with 76% of suppliers having to reduce their staff, and 42% of these warning that they could close permanently if the mine does not reopen this year.
“Economic uncertainty, rising unemployment, a weak job market and a lack of concrete measures have led to the total collapse of supplier companies, thereby affecting the national economy,” they said.
They say that this closure would lead to the loss of more jobs, adding to the more than 50,000 jobs already lost between 2023 and 2024.
In the letter, the businessmen emphasize the relationship between the cessation of mining operations and the crisis of the Social Security Fund (CSS) . They point out that Cobre Panamá, as an operating mining project, contributes significantly to the taxes that could help resolve the CSS crisis.
However, the lack of mining activity has drastically reduced contributions from suppliers, as many of them have had to lay off staff.
“In the situation we find ourselves in, in which many of us have had staff layoffs, our contribution is now $0.00,” they indicated.
Suppliers are calling on the government to reactivate mining. They say that the mining project is essential for the development of the surrounding communities, since a large part of their workforce comes from these areas, which today face a “panorama of unemployment and growing uncertainty.”
They also requested a meeting with the President to discuss possible solutions and find a balance between economic development, necessary regulations and social stability.
“When the mining project was abruptly closed during the previous administration, we were not listened to or taken into account, but in this new administration, we see a great possibility that our interests, needs and concerns will be taken into account,” the letter concludes.
The number of jobs lost between 2023 and 2024 was driven by the contraction in the construction (-12,701 jobs), financial activities (-6,021) and mining (-5,351) sectors.
MiAmbiente is currently making progress in the process of carrying out a comprehensive environmental audit at the mine.
The Panama Canal Authority (ACP) has opened registrations for the Student Assistant program, aimed at Panamanian university students who wish to gain work experience on the interoceanic waterway.
The program is aimed at students in the first, second or third year of their first university degree and who have an academic average equivalent to a grade of “B” or 1.75 or higher.
To apply, applicants must visit the ACP employment portal , enter the “Student Assistant Program” option , answer the evaluation questions and complete the form. In addition, university credits must be attached.
Applications will be available until March 9, 2025.
Those selected will work in person, completing a minimum workweek of 40 hours, from Monday to Friday, between 7:00 a.m. and 4:15 p.m.