Trump Tower in Panama City Fires Trump
The Trump Ocean Tower in Panama City, which is a Donald Trump branded development, has fired the Trump company as the building’s managers. The Associated Press wrote the reasons include accusations of, "mismanagement, overspending, and undisclosed bonuses to executives”.
The building is a 70-story mixed-use luxury development.
Some owners felt that Trump’s management, run by Eric Trump, Donald’s son, was spending more money to benefit the hotel instead of the building’s other components. Trump’s managers never provided a detailed breakdown of the costs generated by each of part of the building, despite repeated requests. The management company also never established the separate bank accounts stipulated in their management contract. A senior Trump executive in New York told one owner in 2012 that maintaining five bank accounts would be too expensive.
Transparency concerns took on a heightened urgency given the Trumps’ failure to stay within its owner-approved budget.
According to the members of the board, Trump’s employees in Panama awarded themselves hundreds of thousands of dollars in bonuses without seeking the authorization of unit owners. Eric Trump said such payments were appropriately disclosed, however board members say they still don’t know the amounts of the bonuses.
Eric Trump cited rising local costs and a broken water main as culprits for $1 million deficits in 2013 and 2014.
Trump's attorney, Alan Garten called the termination “a complete sham” before declaring that the Trump Organization was quitting and demanded a $5 million termination fee.