Speech: First Accountability Report

By President José Raúl Mulino

This is my first accountability to the country. We knew that the State’s finances were in bad shape, but we never imagined the serious situation we found ourselves in. These past few months have been a time of hard work to sort out the mess, avoid social conflicts and deal, as far as possible, with the payment of debts and excessive commitments that were left to us. We spent a lot of time resolving the past in order to straighten out the management.

The result of the last election showed discontent with those responsible for the country’s financial debacle. Many of us know how difficult it is to start from scratch; now imagine starting with less than 50 billion dollars with a State bloated with staff, inefficient and parasitic, with structures that are sustained by the abuse of public resources, in all orders.

From day one, the party for a few was over. We started the State’s engines with optimism and with firm steps we are getting out of the quagmire. But the costs left behind are high and I hope that our justice system investigates objectively, and applies the law to those who were responsible.

We are putting our house in order, with the limitations that exist due to all the rules and laws that were made to protect what does not work. It is a world totally contrary to that of the businessman, the private worker and the entrepreneur. With the current laws, it is almost impossible to fire a bottle because he has high blood pressure or sugar, or any other medical condition that does not represent an impediment in the real world.

These shields that protect inefficiency are very tough, but not impossible to overcome. To overcome them, we need better, more modern laws with a sense of social justice. And we will continue to propose them. The collapse of the current system is evident and real.

Despite all the difficulties, on July 1, 2024, we began a new path, a historic turn that left behind a neglected way of governing, without frank communication and where political and personal interests prevailed over management in favor of the people.

We started a sincere and open dialogue with all sectors, telling them the realities, good or bad. Every week I speak live to the entire country, explaining situations and telling them about the progress. I answer questions from citizens and journalists, without filter, because I feel that facing any issue is the only way to regain confidence in this exhausted political system.

Today is when the cycle of the new government is actually completed, as we cut the umbilical cord with a comptroller’s office submerged in criticism for the lack of oversight and transparency. Today the justice system in our country begins a new cycle, without the pressures and interferences of the past, which, rather than seeking justice, sought heads.

Under my administration, the new prosecutors are free to correct past procedural errors that need to be corrected and to pursue crime; they will never be enemies again. They have my full support to fulfill the historic duty of discovering the truth about what is happening and what happened during the different administrations, including the current one.

Thus begins an era of definitive change, which will allow us to move towards a better, clearer future where resources are no longer used to pay off debts acquired inefficiently and are used on projects that people need.

Ladies and gentlemen.

We made an orderly transition and moved forward without taking any action that would harm the people. In these 6 months we achieved our goals through various actions that allowed us to move forward without further damaging the fragile foundation of the country. I would like to tell you about some of the progress and work that has been done in 6 months.

In the commercial field, Panama joined MERCOSUR as an Associate State, gaining access to a market of 271 million consumers, and the OECD recognized Panama as the headquarters of the Informal Semiconductor Network. We received 12 new companies under the SEM regime and 19 companies were approved under the Free Trade Zone regime, generating an investment of 163 million and more than 1,100 jobs.

In support of small and medium-sized businesses, we fulfilled a campaign promise with the launch of the Entrepreneur’s Space, serving 500 users in 15 days. And this is just the beginning of the program, which is well funded by state banks.

In tourism, we are beginning to wake up with the reformulation of the ATP-IDB loan to develop strategic projects such as the revitalization of Colón, the rehabilitation of churches in the Old Town and the modernization of convention centers, the latter with the aim of reaching the milestone of turning Panama into the Congress and Convention HUB of the Americas. To this end, we closed the record number of 58 international events, and together with the tourist insurance that will be tendered this month, we will make Panama an increasingly competitive and attractive country.

In collaboration with Copa Airlines, we relaunched the Panama STOPOVER program, surpassing the annual goal with almost 160 thousand passengers, which represents a 23% growth compared to the previous year. Other sectors of the private sector joined this initiative with packages for the capital and the interior.

The fruits of agreements reached with charter companies and large wholesalers will soon begin to be seen, such as the recent announcement by the airline CÓNDOR with flights between Germany and Panama, starting this year.

Tocumen International Airport consolidated its regional leadership with 19 million passengers, 196,712 tons of cargo, record revenues of 222 million dollars, 90 destinations and operational improvements that optimized the user experience.

Progress has been made in modernizing key airports such as Alonso Valderrama in Chitré, Raúl Arias in Contadora Island and Marcos Gelabert.

We are cleaning up the finances of the State that we received in a critical state. We implemented a containment of public spending, achieving a reduction of more than 1.3 billion dollars and paying almost 900 million in inherited debts.

We drastically reduced official advertising in the media, as well as the onerous production costs that far exceeded those paid in the private sector. We reduced the number of rented cars and achieved greater efficiency in purchases because when negotiations are open, prices go down.

Panama has consolidated its leadership in renewable energy by covering 100% of its electricity demand with clean sources, exporting surpluses to neighboring countries.

There will be no increase in electricity rates, benefiting Panamanian families, and progress has been made in the electrification of rural communities.

We have imposed fines on electric companies for non-compliance with Panamanians in previous years and have made it clear that poor service to users must change.

We are making progress in strategic infrastructure with the Offshore Wind Farm project and the installation of the Google submarine cable, attracting technological investment.

The National Lottery regularized the books and complaints were filed with the Public Prosecutor’s Office so that those responsible for the theft would face justice as Panamanians expect. That institution was anything but charitable.

In land management, more than 90 thousand historical maps were digitalized and we improved the satellite network, essential for megaprojects such as the Panama-David train. Income from concessions was doubled and the payroll was reduced by 30%.

We have intensified efforts against counterfeiting and smuggling, achieving a 75% increase in the retention of counterfeit goods. Operations such as “Operation Dragon” stand out, seizing millions of dollars in counterfeit currency, adulterated rice and cigarettes. The Digital Traveler Affidavit was 100% implemented at the main entry points to the country.

We have made significant progress in the education, science and innovation sectors in this first stage. This is just the beginning, we will not stop in this effort.

30 Educational Networks by Specialty were implemented and 16 Regional Directors Councils were established to decentralize decisions and improve educational quality.

The School Lunch Program benefited more than 100,000 students, while an intensive agricultural plan generated food for more than 120,000 students.

For the first time, we opened 4,200 teaching vacancies by 2025 and carried out interventions in more than 500 educational centers. We signed an agreement with Amazon for the “Skilling Panama” program, training 31,000 people in key digital skills such as artificial intelligence.

IFARHU distributed 139 million in scholarships, benefiting more than 900 thousand students, without personal or political privileges, as promised. Pending payments were made since 2022 and 480 files were audited to guarantee transparency. This entity is essential and we must continue on the path of decency.

In science and innovation, we organized the Eighth Meeting of the OECD Semiconductor Network, positioning Panama as a global player in this industry and awarded 352 scholarships for this important sector that represents the future.

In technology, we promoted the digitalization of procedures and strengthened government cybersecurity. There is still much to do, but getting started has been essential.

In the area of ​​culture, we reintegrated 22 educational centers, benefiting more than 5,000 students with training in various artistic disciplines. We created the Office of the Historic Center of Colón and made progress in the restoration of the Church of San Felipe, the Historic Center of Colón and the Reina Torres de Araúz Anthropological Museum, with 53% physical progress after resolving stoppages.

In national sport we have tangible results. We fulfilled the payment of incentives to the Olympic delegation that represented Panama in Paris 2024. We organized the CODICADER Games for people with disabilities, promoting sports inclusion.

In terms of infrastructure, we reactivated more than 20 abandoned or halted projects, such as the renovation of the Mariano Bula sports complex in Colón, which had been neglected for 10 years. We also renovated the Olympic swimming pool in David and remodeled the Rod Carew Stadium. In addition, we rehabilitated facilities such as the Roberto Durán Arena and the Eileen Coparropa swimming pool.

Within the framework of our social rehabilitation policy, we launched the National Resocialization Plan, benefiting the prison population with training and productive activities for their social reintegration. The Ministry of Government is working on this mission. But it is complemented by the construction of prisons to break up overcrowding.

In public transport, we inaugurated the San Isidro Interchange, improving the connection between MiBus and the Metro, and increased the fleet to 960 buses, creating jobs and optimising routes. In addition, we promoted sustainable mobility with the approval of an IDB loan to acquire 60 electric buses.

Our commitment to infrastructure is moving forward with firm steps, with projects such as the Fourth Bridge over the Canal, rescued after a decade of inaction, the 8-lane President Roberto F. Chiari highway and the expansion of the Las Playas Corridor. These are not instant projects, but we are following up and supporting them to move forward.

We reactivated 25 projects, including essential roads and bridges, and reactivated asphalt plants and crushers to accelerate improvements to the road network.

To fulfill the promise of bringing potable water to Panamanian families, we are carrying out high-impact projects, such as the interconnection in Pacora, eliminating cisterns, and launching tenders to build wells in critical regions. In addition, the Northern Hydraulic Ring will improve the water supply for 200,000 Panamanians. The infrastructure and supply network are very deteriorated and this reconstruction will take time. Asking for patience is not realistic, but trust that progress is being made.

We have taken significant steps to improve the quality of life and health care of all Panamanians.

The Ministry of Health activated the Commission for Digital Transformation in Health. Telemedicine was implemented in 25 facilities. We equipped medical centers benefiting more than 300,000 people, and simplified registration processes to guarantee accessible medicines. We reactivated abandoned hospitals such as Metetí, Bugaba and Cañazas, and we made 50% progress in the construction of the new Children’s Hospital. Obviously, regularizing the enormous arrears that exist, but facing so much disarray.

The Social Security Fund performed more than 800 surgeries, significantly reducing the surgical backlog. In the City of Health, we inaugurated the High Complexity Pediatric Hospital and installed modern gynecological-obstetric and neonatal facilities. We made a large investment to expand to 600 hemodialysis machines and improved services in provinces such as Chiriquí and Bocas del Toro with cutting-edge technology.

With the integration of the oncology hospital and the oncology centre of the City of Health, the integration of the health system began.

We have implemented comprehensive strategies to combat delinquency and organized crime, dealing decisive blows to criminal organizations. 80,000 packages of drugs have been seized so far this year and more than 4,000 firearms have been confiscated. Combating drug trafficking and its mafias is an enormous and dangerous task, but we face it head on, trying to lower crime rates.

Regarding irregular migration, we have achieved a 41% reduction in the flow of migrants crossing the Darien jungle, going from 511,103 in December 2023 to 300,549 in the same period in 2024. 38 repatriation flights have been carried out, deporting a total of 1,548 people. The routes were controlled and today we work every day to ensure that this illegal migration does not reach the rest of the country.

In social matters, we have paid 225 million dollars to the most vulnerable Panamanians. The Creciendo Contigo Program was implemented in 13 communities, benefiting 1,020 families with children from 6 to 48 months. We have invested 250 thousand dollars in food for 2,234 children from 0 to 4 years old. The costs of registration and monthly fees at the CAIPI MIDES were reduced and the hours of attention were extended to support low-income families.

The Panamanian Institute for Special Education expanded its coverage to 18,346 students, offering food programs and new coverage in Early Childhood and Intermediate Technical Careers.

We have made significant progress in job creation. Through the “My First Job” program, 1,258 job openings have been opened for young people in its initial phase. In addition, 64,800 new employment contracts were registered, including for people with disabilities, achieving the reintegration of more than 2,000 people into the labor market.

The agricultural sector has also shown improvement. More than 37 million in arrears have been paid to producers and by next April, we will have paid more than 80 million for corn, milk, rice and other products.

The Sustainable and Inclusive Agricultural Innovation Program was launched, initially benefiting 5,000 small producers, including vulnerable areas such as indigenous regions.

Monthly fairs were held nationwide, with over 50,000 people attending, who had access to cheaper food. There will be sales stands throughout the country so that people can buy cheap food without any problems.

Panama reaffirms its commitment to the environment with the Saboga Island Wildlife Refuge, protecting endangered species and consolidating our position as a leader in marine conservation.

In the fight against climate change, the most exhaustive forest analysis in the country’s history was carried out, identifying critical areas of deforestation.

Panama will host two rounds of high-level UN environmental negotiations in 2025, consolidating our role as a key player in sustainability and international cooperation.

As you can see, we did a lot with what they left us and this is just the beginning. I do not come before you to lie or to sell false promises. We worked hard with what they left us, but we are moving forward, which is the fundamental thing.

Our government was and is focused on reforming the Social Security Fund, which has been delayed. I can tell you frankly that the future of the country depends on this.

I repeat, it is not the President’s wish to make reforms to Social Security just for the sake of it. But it is my firm commitment not to further harm the economy by avoiding the issue or looking the other way, as could have been a convenient but irresponsible behavior.

The bill was presented on November 6th to be debated and discussed at length. Hundreds of people attended this Assembly and gave their opinions of all kinds. Even though they were not satisfied, they went to the interior of the country where participation was low, in some cases with less than half of those registered.

The government presented its project, the citizens made their statement and we still have to see the projects and the arguments of the deputies to whom I say that Panamanians want and deserve growth, development and well-being. It is only fair.

But in order to do so, decisions must be made, one of which is to pass the Social Security reform. Our project is responsible; surely everything can be improved and they must be improved at once. Delaying the time does not solve the problem. On the contrary, it makes it worse. Nor is it responsible to justify, or not support, the project because all the national problems must be corrected first. That is demagogy. The reform of the Social Security Fund does not go through that, nor can the situation be used to introduce issues that are foreign to the reality that motivates the reform.

Our metrics have been validated and we are willing to meet with the technical teams of the parties to continue moving forward on a real solution, as we have done many times. But, to date, nothing has been presented on their part. The statements are not proposals!!

Honorable deputies: it is time to move forward responsibly. I earnestly ask you that, just as you ask us in a fair way for the economic reasons regarding our project, you give us yours to support the modifications or leave things as they are at present. You know well that not changing anything is not an option. Now it is up to you, as the National Assembly, to make the decisions.

I ask that, if the proposal is to increase the ITBMS, the population be told that there will be a three-point increase in their consumption and that this proposal is sufficient to save the Social Security Fund or is a palliative measure so that in a few years it must be reformed again, because it is everyone’s responsibility, as I do, to speak the truth and support it. If you want to propose a tax reform, then say so clearly.

This is not about tax reform under the pretext of not addressing the actuarial problems of the Social Security Fund that cannot be solved with more taxes.

I am confident that if we unite and do things right, Panamanians will enjoy economic prosperity in the coming years, which will only be possible if we move from words to actions, if we have the greatness to make the changes that are needed.

And it is not just about the Social Security Fund, but about a reform of the State that allows for greater agility, lower expenses and greater dynamism in an economy that has not yet taken off with the power that our people need.

I said it from day one, the project is not written in stone, but it is important to complete it so that we can look forward with the peace of mind and guarantee of a strong Social Security that truly serves the insured.

Fellow citizens,

While other countries in Latin America have made progress in open systems of public competitions, democratising access to public office based on merit, in our country the friend and the supporter are perpetuated. The laws that correct this situation must be born here, not in coffee shops or on Sunday programmes.

I respect this Assembly and its independence, but I must ask you to put the same emphasis and effort that you put into debates, questions and requests to ministers, into drafting laws that allow the State to be reduced and eliminate bottlenecks.

Do the work of presenting supported projects that help the State to be better, not only the Executive, but also the Legislative and Judicial branches, which must also be more efficient.

We all need to produce more with less bureaucracy. Let’s start with a new Law on Administrative Careers. A first step in the right direction. So that the Executive, which has taken the decision to reduce the bureaucratic structure, eliminates duplicate functions, reduces ministries without cutting essential functions.

At the end of this year we will have fewer officials, fewer ministries and fewer secretariats than we have now. We will use the money saved for the works that people need, many of them in the circuits that you represent.

Panamanians,

Since the beginning of my administration, I have removed any locks that may exist in Justice, so that, in freedom, prosecutors and judges can act efficiently and without the pressures of the past. But this work must be objective, independent and equal in treatment. Focusing on some, leaving others out, does not correspond to true Justice.

I do not want cruelty or privileges, because I was on the side of the victims of this cruelty, which will not happen again. But I also do not want history to unfairly single out some and leave others unpunished. This is not how a true democracy is built.

Duty calls us to unity, because we all save this country or no one saves it. Each person must act from his or her responsibility, from his or her place seeking the common good because first come the interests of the country, then sectoral interests and, lastly, far away, personal interests.

It is with this conviction that I want to announce a series of measures that I will take in the short term.

First: reduction in the price of medicines: I have asked Minister Fernando Boyd to make the 20 most commonly used medicines available to pharmacies this month at a significant discount.

To ensure this discount, we will do something unprecedented. Drugs that are approved, for example, by the FDA in the United States and the EMA in Europe will have automatic and immediate health registration here. We are going to put an end to the drug mafia in the Directorate of Pharmacies and Drugs.

I say to the officials: if they plan to serve four or five distributors, they should resign and go work in the private sector. Those who stay should be clear that they will work so that 4 million Panamanians have cheaper medicines.

This will encourage competition, lowering prices, benefiting everyone.

This will be done with a commitment from the sector to sell to pharmacies at the same price as they sell to MINSA or to the Social Security. If they do not comply, I will do it through direct import. This time, Panamanians win. Ladies and gentlemen, I need your commitment for this to happen, because medicines are unaffordable.

We will control the supply with ACODECO, with heavy fines for those who speculate with people’s health. This is an urgent commitment. We will end these abuses, and I hope that it will be in peace.

On the other hand, on state lands, we will launch a subdivision plan in various parts of the country so that low-income families can own their plots, with infrastructure and services, thus beginning territorial planning. This is one of the best tools for distributing wealth.

Minister Jované of MIVI will be presenting the start of this project in the coming days.

On the other hand, water is a recurring problem in the country. The West is one of the regions that suffers the most. The Howard Water Treatment Plant is about to be finished, but it does not have the water intake to purify it and it does not have the electric plant either. In other words, they built a water treatment plant without water and without electricity. Another stroke of genius!

Completing the work will take at least 18 months. In the meantime, we will carry out a plan for new wells with pumping stations throughout the country, mainly in the western region. Starting this month, we will begin the plan for 200 new wells that should be completed in the first quarter.

While we carry out the final works, we will begin to bring abundant water to the people, with strict control over the distribution. I will not allow any more motorcycles with the GPS of the tanker trucks lying about the deliveries. That is a crime and whoever does it will be prosecuted.

In terms of security, we will move forward with the construction of a maximum security prison, so that serious crimes such as drug trafficking, extortion, kidnapping and human trafficking can be held there. It will be a stronger, stricter system without the privileges that crime has today. Human rights are for everyone, but mainly for the victims, who are the majority.

This year we will have greater economic creativity. I am a prudent man, but I did not come here to win a Nobel Prize in economics. The greatest gift is to see the country happy, with money in its pocket as a result of more quality jobs and entrepreneurs with opportunities. That money must come from economic growth, various investments, and not from the national budget.

I am clear that we must expand the economy and increase financial confidence in Panama. Our foreign minister will seek the opportunities that our country offers to attract investments together with the ministries in the economic area.

We will continue and strengthen the strategy to remove the country from the current discriminatory lists, the professional team will be improved and we will appoint a special and qualified ambassador to provide the corresponding follow-up. Panama does not deserve this discrimination and I appeal to friendly countries to understand that their support will be necessary to end these policies that affect and damage our good name.

I would like to inform Panamanians that, as of today, we are non-permanent members of the United Nations Security Council. This is the sixth time that we have been honored with this position.

As I said at the United Nations General Assembly, this is the result of sustained work over time. It is due to our country’s conduct in the fight against terrorism, human trafficking and drug trafficking. Panama will continue to work, this time from the Security Council, for peace and harmony among all nations.

On the other hand, I want to share that this year I assume with responsibility and commitment the task of leading our nation towards the great transformations that our history demands so that future generations inherit a Republic that protects people, the environment and institutions, thus enjoying 21st century citizenship.

The Original Constituent Process is an ethical and moral imperative that responds to the need for a Modern Republican State. For them, I declare 2025 as the year of Constitutional Literacy, a necessary stage to lay the foundations for a new social pact, more inclusive and fair.

Together, we will make this process the solid foundation for building the future we deserve, and which was not achieved for different reasons and motivations.

I decided to move forward in this direction so that every Panamanian is respected and guaranteed inclusion, transparency and social justice.

Compatriots,

In closing, I want to tell you that the year that just ended was one of much effort and work. I know that it has been hard, both at home and in the State. The accounts were so red that they were burning; the good thing is that we are going to manage to cool them down and put them in the positive, generating jobs and wealth in the country.

I want to highlight the work and effort of the Office of the First Lady, which has managed to be at the side of the victims of the floods and the most vulnerable Panamanians. My wife, Maricel, and her team have managed to promote employment in the female penitentiary system, restoring hope and dignity to the inmates. Her project “Love on Wheels,” which deploys mobile clinics equipped to perform mammograms, electrocardiograms and ultrasounds in hard-to-reach areas, benefited almost 10,000 people in the first months of her administration, or Misión Patitas, which sterilizes thousands of pets. These are just a few examples of what she does.

She and her team strive to help my administration with the most vulnerable sectors, while working to bring health to pets and promoting activities for children and the elderly, such as the revitalization of Omar Park that serves the entire family.

I have faith and hope that this will be the year of achievements, of the change that we all hope for and that I promised you during my campaign. All of us here have a moral obligation to work in that direction, starting by not losing our investment grade, which would be very detrimental to the economy and would affect ordinary Panamanians above all.

I am confident that together we will maintain this level of investment, we will reduce unnecessary and bureaucratic expenses. In this way we will stimulate the economy so that uncertainty will be transformed into prosperity and confidence in a better future.

This will be the year of concrete responses, based on our work and investment plan. I tell all officials, of whatever rank, that the people are attentive, they expect results and their patience has limits. The stage of paying debts and of transitioning to more open institutions and of fixing the internal chaos has passed. Now they must focus on those results, with concrete solutions for the people and reducing their structures to make them efficient.

We will have a better year, which will be the beginning of an economic and social recovery after so many years of decline. We have a great future and we will achieve it by working hard, united, with optimism, bringing Panamanians the answers we have promised, for which we are here.

Panamanians, there is a future here and we are going to take advantage of it.

I wish you a 2025 full of Health and Prosperity. I promise to work, work and work to achieve the national objectives.

May God bless our beloved country.