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Panama Rejects Incumbent’s Party in Presidential Vote Incumbent’s Party Loses Presidency in Panama
(about 1 hour later)
MEXICO CITY — Panamanians, enjoying one of the fastest-growing economies in the hemisphere, nevertheless rejected the incumbent party’s presidential candidate — and the president’s wife for vice president — and hewed to tradition on Sunday by choosing an opposition candidate as its next president, according to preliminary results. MEXICO CITY — Panamanians, enjoying one of the fastest growing economies in the hemisphere but wary of corruption and growing executive power, rejected the governing party’s choice for president Sunday — on a ticket with the president’s wife for vice president — and instead hewed to tradition by electing an opposition candidate.
Panama’s election commission declared Juan Carlos Varela, who is vice president but broke with the governing party in a rancorous falling out and was stripped of many of his duties, the president-elect based on his capturing 39 percent of the vote, with more than 60 percent of the ballots counted. Panama’s election commission declared the president-elect to be Juan Carlos Varela, who is vice president but broke with the governing party in a rancorous falling out and was stripped of many of his duties. He captured 39 percent of the vote, with more than three-quarters of the ballots counted.
Mr. Varela, a well-known politico whose family owns the country’s biggest liquor producer, was seven points ahead of the 32 percent won by the governing party candidate, Jose Domingo Arias, the former housing minister and a political newcomer. A third major candidate, Juan Carlos Navarro, a former two-time mayor of Panama City, had 28 percent. Mr. Varela, 50, an engineer and well-known politico whose family owns the country’s biggest liquor producer, was seven points ahead of the 32 percent won by the governing party candidate, José Domingo Arias, a former housing minister and a political newcomer. A third major candidate, Juan Carlos Navarro, a former two-time mayor of Panama City, had 28 percent.
Mr. Varela’s victory was a rebuke to President Ricardo Martinelli, who oversaw years of rapid growth and campaigned openly for Mr. Arias. Opponents seized on the choice of his wife as the vice presidential candidate as a thinly veiled attempt to hold on to and concentrate power. Mr. Varela campaigned against growing corruption and promises for a more transparent government. Mr. Varela, who takes office July 1 for a five-year term, campaigned against growing fears of corruption and the president’s iron fist-style of leadership. He promised a more transparent government that will maintain growth and popular social programs and fight inequality.
It seemed Mr. Martinelli’s party had much to give it a sharp advantage: a newly opened subway line in Panama City, the first in Central America, and plans for an expansion. A new, if controversial, highway bypassing the city’s old quarter. A skyscraper forest in the capital reflecting the cash pouring in from corporations, wealthy immigrants and speculators of all stripes. And a growing economy, as the Panama Canal undergoes a $5.2 billion expansion that could accelerate it more. “Today democracy won, today Panama won,” Mr. Varela told cheering supporters at a Panama City hotel, later adding, “We will not tolerate corruption in any way.”
But while Mr. Martinelli has approval ratings around 60 percent, the final round of polls showed the candidate of his right-leaning party, Democratic Change, in a close race. His two main rivals had vowed to continue the big spending but without the iron fist and cronyism they say Mr. Martinelli wielded. Mr. Varela’s victory was a rebuke to President Ricardo Martinelli, who oversaw years of rapid growth and defied electoral law by campaigning openly for Mr. Arias on a ticket that included his wife, Marta Linares de Martinelli, as the vice-presidential candidate. Opponents seized on the move as a thinly veiled attempt to hold on to and concentrate power.
It seemed Mr. Martinelli’s Democratic Change party had much to give it a sharp advantage: a newly opened subway line in Panama City, the first in Central America, and plans for an expansion. A new, if controversial, highway bypassing the city’s old quarter. A skyscraper forest in the capital reflecting the cash pouring in from corporations and wealthy immigrants. And a strong economy, with a $5.2 billion expansion of the Panama Canal that could accelerate it more.
But while Mr. Martinelli has approval ratings around 60 percent, the final round of polls showed Mr. Arias in a close race, with Mr. Varela in third place.
Voters formed long lines all day, and there were few irregularities, said Jennifer L. McCoy, Americas director of the Carter Center, who observed the balloting. In one last-minute dirty trick she cited, fake editions of a major newspaper claimed that two candidates had withdrawn.Voters formed long lines all day, and there were few irregularities, said Jennifer L. McCoy, Americas director of the Carter Center, who observed the balloting. In one last-minute dirty trick she cited, fake editions of a major newspaper claimed that two candidates had withdrawn.
It was typical of the mudslinging in what political analysts said could be the closest of the four presidential contests since the United States invasion in 1989 toppled Manuel Noriega’s dictatorship — the newspaper Panama America reported even he had voted in the Panamanian prison where he has been since returning in 2012 — and ushered in a new era of democracy. It was typical of the mudslinging in what political analysts said may turn out to be the closest of the four presidential contests since the United States invasion in 1989 toppled Manuel Noriega’s dictatorship — the Panama America newspaper reported even he had voted in the Panamanian prison where he is serving time for crimes during his reign.
Opponents of the incumbent party, which Mr. Martinelli, 62, founded five years ago, warned that democracy could be under threat. Mr. Martinelli, 62, a quick-tempered supermarket magnate who shook up the political establishment five years ago as an outsider with a commanding win, could not seek another term. The choice of Mr. Arias, 50, led opponents to doubt that Mr. Martinelli would really give up power if his party won.
Mr. Martinelli, a quick-tempered supermarket magnate who shook up the political establishment five years ago as an outsider with a commanding win, could not seek another term. Alongside his wife, Marta Linares de Martinelli, as the vice-presidential candidate, a political neophyte, José Domingo Arias, led the ticket. The choice of Mr. Arias, 50, a former housing minister, led opponents to doubt that Mr. Martinelli would have really given up power if his party had won. Mr. Arias had sought to ride Mr. Martinelli’s popularity with promises to continue big public works and social programs, but he lacks the president’s flare for the dramatic and blunt talk that endeared supporters and turned off opponents.
Mr. Arias had sought to ride Mr. Martinelli’s popularity with promises to continue big public works and social programs, but he lacked the president’s flair for the dramatic and blunt talk that endeared supporters and turned off opponents. His wife’s presence on the ticket also has been questioned, as Panamanian law forbids the sitting president’s blood relatives from seeking the country’s top two offices. It is unclear if spouses would violate the spirit of the prohibition.
Supporters of two other candidates — Juan Carlos Navarro, 52, a former two-term mayor of Panama City representing the left-of-center Democratic Revolutionary Party, and Mr. Varela, 50, of the right-of-center Panameñista Party — have accused Mr. Martinelli of corruption, lacking transparency in governing and illegally participating in the campaign with a spate of ribbon cuttings and warnings that the economy could falter if his party lost.
His wife’s presence on the ticket also was questioned, as Panamanian law forbids the sitting president’s blood relatives from seeking the country’s top two offices. It is unclear if spouses would violate the spirit of the prohibition.
“Her nomination evidences a desire by Martinelli to remain powerful after the elections,” said Orlando J. Pérez, a political scientist at Central Michigan University who studies Panamanian politics and was in Panama City for the election.“Her nomination evidences a desire by Martinelli to remain powerful after the elections,” said Orlando J. Pérez, a political scientist at Central Michigan University who studies Panamanian politics and was in Panama City for the election.
Mr. Pérez said her candidacy could backfire, as Panamanian voters tend to fret over concentrations of power. The opposition has run strongly despite improvements in the country, including social programs aimed at helping the poor, the elderly and schoolchildren, because “the historic tendency in Panama is to vote for the opposition,” he said.“ Every one of the previous four presidential elections since 1990 has been won by the opposition,” he said.
Analysts said that signs the economy’s surge is slowing — it grew 8.4 percent last year after consecutive years of double-digit expansion — could worry voters, who also are paying more for basic goods as inflation rises. Panama has a wide inequality gap, with more than a quarter of the population of four million in poverty. Crime remains serious. Infrastructure problems, including traffic, chronic urban flooding and power shortages, could also play against Mr. Arias.Analysts said that signs the economy’s surge is slowing — it grew 8.4 percent last year after consecutive years of double-digit expansion — could worry voters, who also are paying more for basic goods as inflation rises. Panama has a wide inequality gap, with more than a quarter of the population of four million in poverty. Crime remains serious. Infrastructure problems, including traffic, chronic urban flooding and power shortages, could also play against Mr. Arias.
Mr. Arias’s opponents have thrown sharp elbows — mainly at Mr. Martinelli.Mr. Arias’s opponents have thrown sharp elbows — mainly at Mr. Martinelli.
Ruben Blades, the Panamanian salsa star and actor who ran unsuccessfully for president in 1994 and served as tourism minister in the mid-2000s, posted a statement on his website declining to endorse any candidate but warning that electing Mr. Arias would constitute a re-election of Mr. Martinelli. He called that a “dangerous risk for Panamanian democracy.” Ruben Blades, the Panamanian salsa star and actor who ran unsuccessfully for president in 1994, posted a statement on his website declining to endorse any candidate but warning that electing Mr. Arias would constitute a re-election of Mr. Martinelli. He called that a “dangerous risk for Panamanian democracy.”
“I state clearly that I reject any attempt to impose a re-election, be it openly or underhanded,” he said.“I state clearly that I reject any attempt to impose a re-election, be it openly or underhanded,” he said.
Mr. Varela has accused Mr. Martinelli and his sons of taking kickbacks in exchange for government contracts. Italian prosecutors are investigating whether the Italian defense firm Finmeccanica paid bribes to foreign governments, including Panama’s, but no Panamanian officials have been charged. Mr. Varela’s supporters suggest Mr. Martinelli put his wife up to running in part to ensure an Arias cabinet would not pursue any case against him.Mr. Varela has accused Mr. Martinelli and his sons of taking kickbacks in exchange for government contracts. Italian prosecutors are investigating whether the Italian defense firm Finmeccanica paid bribes to foreign governments, including Panama’s, but no Panamanian officials have been charged. Mr. Varela’s supporters suggest Mr. Martinelli put his wife up to running in part to ensure an Arias cabinet would not pursue any case against him.
Mr. Arias, in turn, accused Mr. Varela of being close to drug traffickers, a provocative charge in a country where Mr. Noriega was deposed to face charges in the United States of drug trafficking and money laundering. On Saturday, Mr. Varela found himself denying rumors that his American visa had been suspended, with a statement by the American Embassy backing him up.Mr. Arias, in turn, accused Mr. Varela of being close to drug traffickers, a provocative charge in a country where Mr. Noriega was deposed to face charges in the United States of drug trafficking and money laundering. On Saturday, Mr. Varela found himself denying rumors that his American visa had been suspended, with a statement by the American Embassy backing him up.