Watch What You Write In Panama

How Much Freedom Of The Press Exists In Panama?

 

newsnviews2.jpg(costaricapages.com) Panama is a country that has so much potential, yet once in a while someone in the government makes a decision that gives Panama a true “Banana Republic” image. Last week a Panamanian civil court ordered the seizure of assets belonging to a weekly newspaper, in response to an article written about possible tax evasion.


A story about tax evasion in Panama would be nothing new. The problem is that the publication El Periodico, accused Herman Bern, a well known real estate and hotel mogul. The story, Pobre Millonario (Poor Millionaire), was published September 1st, and by the end of that same week the assets of the newspaper, as well as portions of two staff members salaries had been seized. That’s pretty quick work in Panama!


The published article contained a copy of Herman Bern’s 2007 tax filings, which the paper apparently received from an anonymous reader. The newspaper claims they verified the document before publishing it. Bern sued El Periodico for  damages claiming the newspaper had violated an article in the Fiscal Code that prohibits the disclosure of information about taxpayers income. At issue is the income tax filing that was published in the paper, showing that Bern only declared that he earned $39,000 in 2007. The lawyers for the newspaper will now have to prove that the tax information they published was in fact legitimate. $39,000 is not much of an income for a guy who owns a number of high rise condo buildings and many hotels including the Intercontinental Miramar, Playa Bonita and the Gamboa Rainforest Resort.


The Committee To Project Journalists has now jumped on this story saying it “sets a chilling precedent for the local press”. What I think is most chilling is the speed in which the newspaper faced legal consequences. Simple court proceedings can take months to be completed in Panama, yet when someone high profile is the complainant, the process seems to speed up substantially.


It will be interesting to see how this story plays out in court. If El Periodico can prove they published a legitimate tax return for Herman Bern, than either he’s broke or he’s evading taxes. If the tax return proves to be incorrect then the newspaper was reporting irresponsibly or a “correct” income tax return magically appeared. The outcome could also show how free or stifled main stream media is in Panama.


Accusations have been cast in Panama for years that reporters and publishers are easily bribed by government officials and Panama’s elite. I have no personal experience with such circumstances, but, I have had “friendly suggestions” from government officials as to what I should be writing.


How free do you think the press is in Panama?