Watch What You Write In Panama
How Much Freedom Of The Press Exists In Panama?
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?
| Written by Rebecca Tyre |  |
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Filed under: Business, Culture, News on September 9th, 2008
As a blogger on Panama I believe we and the press have a responsibility to be careful what we write or documents we publish. Giving our opinion on issues is one thing and I believe should be protected, but publishing someone personal tax return and stating or even implying that they are evading taxes is another. I believe that unless we are working for the government or running for political office, our personal documents that are filed with the government should not be made public by anyone. A recent law has gone into affect addressing this particular issue to protect private parties from just this kind of slander. Proving that the tax return is not false is not the burden of the defendant in this case. He would have to prove he did not publish it at all.
As came out in this sequester, the paper in question did not have significant assets and therefore had little to lose in comparison to Mr. Bern who has a solid reputation that is being tarnished by mere words that anyone with a computer can now write.
You do not know the circumstances of the personal tax return or how much Mr. Bern’s various entities pay in taxes. I know as a developer our business enterprises pay significant taxes on everything we do and pay ourselves as little as possible, just as most tax payers do.
I do not like the sequestering law in Panama and have seen it abused in a number of instances, but I believe this is a case Bern had little other recourse except to file an action. If the paper were a significant operation they could put up a bond to cover the sequester.
I am not saying this in defense of Mr. Bern or developers, but for all of us. We should not be able to slander someone or publish their personal documents and just say it is freedom of speech.
I agree Sam, I don’t think Herman Bern is out of line here at all. It’s one thing to sue for defamation if somebody calls you a doody head, it’s another if they publish the details of your personal finances. OUCH!
I believe on freedom of speech and freedom of the press two things that are always missing in my beloved country. Unfortunately money talks and does miracles in Panama, if The Politico maliciously published with intent to harm incorrect information, then they must be liable. However, is not news of many powerful exploiting the land, the people, for their own gain then flee with the pockets full of gold. It is sad that the powerful and influential people with $$$ can disregard any written laws and do whatever they want. As that all saying goes, the richest and powerful in Panama get richer and the poor gets poorest. The laws were only written for those that don’t have the means to fight the big rollers.
Good Bless Panama, one day the common people will awake and revel, hope is soon.
WAKE UP EVERYONE!!!!