This interesting article reports on the Panama government’s payments to 2 different lobby firms who manage image and publicity relationships internationally.
While the payments seem to be quite low compared to what they are trying to accomplish, the greater question to us is, “where are the results?”. We have seen very little substantive defense communicated by the Panamanian administration…and what we HAVE observed has been basically lying down for the international governance community when it comes to maintaining the sovereignty and constitutional responsibility of the Panama government to protect the rights, privacy, and reputations of all corporations and/or trusts who do their business in Panama.
The almost immediate results of Panama accepting and complying with the Obama administration’s FATCA bill of 2010 was to throw all law-abiding American companies, business people and thousands of retirees in Panama “under the bus” when it came to basic banking and legal services (we cover this extensively in our progressing book on “The Bloody Truth about Living and Doing Business in Panama”). Many of us had to close accounts or consult expensive legal and accounting services to stay alive and competitive in business or living in Panama.
It has been acknowledged even by the organization responsible for distribution of Panama’s stolen documents that probably over 95% of foreign entities that were serviced by Mossack & Fonseca were clean and legal. All the terrible “drug and cartel” money launderers that were using Panama for illicit activities were in the extreme minority…but now the Panama government and judicial system has opened the door for the complete undermining of their own constitutional protections of foreign entities operating in Panama. Now that this overblown situation based on illegally gained documents has blossomed…the media entities propagating these false claims based on stolen information are still held harmless for the damages they have caused thousands of legal entities in Panama.
It is not logical nor wise for Panama to allow this destruction of their sovereignty and rights to manage their own affairs when it comes to taxation, banking and competitive development in their small country. Their current system is very dependent on global business and investment especially in light of their dependence on the Panama Canal revenues.
We hope to someday see the results of the funds Panama is paying these lobbyists and publicists. More than that, we hope their legal system will get back on track in demanding justice against the robbers and perpetrators of these sovereign documents and information that have become public domain to all competing nations. Protection of their banking and financial service sector is paramount for maintaining the growth Panama has realized this past decade.
These and many other issues are being addressed in “The Truth about the Panama Papers”.