All amounts in U.S. dollars. Numbers in italics are estimates, usually based on the closest year for which data are available.

All amounts in U.S. dollars. Numbers in italics are estimates, usually based on the closest year for which data are available.

All amounts in U.S. dollars.

All amounts in U.S. dollars.

Document: 2008 End-Use Monitoring Report

Program: International Narcotics Control and Law Enforcement

PANAMA CITY

Background

EUM Program Coordinator
NAS Administrative Assistant Debbie Guarnieri Tel: 507-207-7273; guarierida@state.

Inventory System

The stand-alone version of the Non-Expendable Property Application (NEPA) inventory system has been implemented.

Staff Member EUM Responsibilities
Staff members, the NAS Assistant, and PSC advisors perform periodic site visits and meet with GOP personnel to discuss the use of donated assets. DEA and DHS/ICE agents also conduct regular on-site visits and report any discrepancies/needs concerning INL- provided resources. The NAS and the GOP are jointly responsible for maintenance of all INL-donated equipment. The NAS sells items returned as non-functioning/non-repairable that are deemed to have sufficient retail value at GSO directed embassy auctions. Auction sale proceeds are returned to program funds. The NAS also certifies destruction of property that is deemed to have no significant resale value.

Counterpart Agencies
General International Affairs Criminal Statistics System (SIEC)
Drug Prosecutor's Office Financial Investigative Unit (FIU)
Financial Analysis Unit (FIU)
First Prosecutor's Office Anti-Corruption Unit
First Prosecutor's Office Drug Unit IPR
Prosecutor Office Organized Unit
Joint Information Coordination Center (JICC)
Panama National Police (PNP)
The Police Fluvia Unit (UMOF)
Investigations Directorate (DIJ)
National Aerial Naval Service (SENAN)

In 2008, the National Assembly passed a bill to merge the Technical Judicial Police Unit (PTJ) with the National Police Investigations Directorate (DIJ). This combined unit has retained the original name of the Investigations Directorate and is controlled by the Panamanian National Police (PNP). Also during 2008, the National Maritime Service and the National Air Service were merged into the National Aerial Naval Service (SENAN). Items donated to the former institutions are all accounted for and being used
by the respective organizations.

Monitoring Procedures

On-site Inspections
Five (5) scheduled and twenty-eight (28) unscheduled inspections were conducted in 33 cities in 2008.
The number of donated items subject to inspections was 4,978. The percentage of items personally inspected was 78%,

Secondary Methods of Monitoring Resource Status
When on-site inspections were not feasible, the NAS staff relied on meetings and conversations with host country offices, who confirmed that the equipment allocated to their respective units was present and remained in good condition.

Status-Commodities

Computer Equipment
The NAS currently tracks 380 CPU's donated to host government institutions to include: PNP-42 units, DIJ-55 units, SENAN-32 units, Public Ministry-121 units, CFZ-23 units, MOGJ-52 units, and Presidency-32 units, Customs-14 units, and CENAID-5 units. The equipment listed above is still in fair working condition, but some of it is becoming outdated/obsolete. This equipment is being used to maintain statistical crime information, counter narcotics investigations, prosecutions, and money laundering cases. In 2009, post will modify its inventory control system to remove items that while still being used by units, have reached the end of their useful lifespan.

Canine Program
Twenty-three (23) canines were donated to the PNP in 2005. Seventeen (17) remain operational; 13 are used for drug detection; one is used for explosives detection, and three are used for protection and security. Six canines have been retired. The canines are all being housed in Tocumen and are in good health.

Satellite Phones
There are currently two satellite phones provided to the Fluvial Unit of the PNP. These phones are used during surveillance operations in remote locations. The equipment is in good working condition.
Night Vision Goggles
The NAS has donated 19 sets of Night Vision Goggles to the GOP. Eight units have been donated to SENAN, five units to the DIJ, and six to the PNP. This equipment is being used for counternarcotics and surveillance operations and is in good working condition.

Vehicles
The ability of NAS to maintain vehicles seized by Panamanian Police narcotics units enabled post to provide PNP vetted units with a fleet of vehicles for under $20,000 per year. This program has proven highly successful and much less costly than providing new vehicles on a consistent basis.

National Aerial Naval Service (SENAN)
Ford 250 pickups 4
Motorcycles 4
Bus 2

Financial Investigative Unit (FIU))
Ford CAB 2
Ford Focus 2

Joint Information & Coordination Center (JICC)
Ford Taurus 1

Panamanian National Police
Ford 250 pickups 2
Toyota Prada 1
Ford Exployer 1
5-ton trucks 10
1 1/4/ ton truck 4
Humvee Ambulances 4
Utility Humvee 11
Suzuki motorcycles 6
Ford 4x2 1
Ford Clubwagon 1
Chevrolet van 1

Investigations Directorate
Ford Focus 2
Honda RV1 2

Vessels
TThe NAS is currently refurbishing five 82-foot ships donated to Panama. At the end of FY-2008, refurbishment of one of ships was completed. The ship has already been involved in successful counternarcotics operations. The NAS plans to complete the refurbishment of two or more ships, as well as conduct routine maintenance on the first ship during FY-2009.

Panamanian National Police
Proline vessel 2
Donzi fast boat 2

SENAN
Donza vessel 2

Program Impact

Vessels
The Police Fluvian Unit (UMOF) used NAS donated vessels to seize over 16 tons of cocaine in 2008. Vessels donated to the National Maritime Services were not associated with similar seizure numbers in FY-2008, but following the creation of SENAN, the units assigned these assets have expressed a greater eagerness to actively pursue narcotics traffickers.

Communications Equipment
Cell phones, satellite phones, and radios compatible with the police network provided to vetted units and other select units with the National Police network have contributed to Panama once again leading the region in interdiction with the seizure of over 50 tons of cocaine in FY-2008. The equipment has enabled PNP officials to communicate during both special operations and in the course of their normal activities.

Vehicles
The ability of the NAS to maintain vehicles seized by Panamanian Police Narcotics Units enabled post to provide PNP vetted units with a fleet of vehicles for under $20,000 per year. This program has proven highly successful and is more cost-effective than providing new vehicles on a constant basis. These vehicles, along with four program vehicles maintained by the NAS, enable PNP personnel to conduct investigations, surveillance, and patrols.

Laboratory Equipment
Laboratory Equipment donated to the DIJ laboratory in Santiago is of vital support to the region. This unit provides fast response to the PNP unit by working cases in the northern provinces of Panama that traditionally were underserved by the other laboratory located in Panama City.

Problems and Corrective Action Plan

PNP/PTJ Merge
The merge of the PNP and PTJ units has hampered the inspection of some inventories. Post plans to update the PNP and PTJ inventories as part of the planned overhaul of the system.

Vessels
A Donzi vessel donated to the SENAN was broadsided by a commercial boat; the vessel has been assessed as a loss and will be removed from inventory.

Unmonitored Resources
Four (4) percent of the donated items were not monitored in 2008 due to staffing shortages and the need to update post's inventory system. Some outlying locations were not monitored during 2008. All items not monitored in 2008 were donated prior to 2005 and were visually inspected in 2007. Post is modernizing its monitoring system and will visually inspect all items not inspected in 2008 in the first quarter of 2009.

Repair and maintenance of Commodities
Communications equipment and spare parts for the PNP were being stored in two different facilities making it difficult to run an efficient inventory system. The NAS has consolidated the storage into one centralized location.

Facility Repair
The roof of the room used to house the X-ray unit at the Tocumen International Airport was in urgent need of repairs to prevent water leakage that could damage the equipment. The GOP has repaired the roof.

Disposal of Commodities
Post is in the process of disposing outdated equipment that has served its useful lifespan. Items deemed of sufficient value will be sold by GSO directed auctions; other equipment will be disposed of following NAS procedures.

Document: FY2009 Section 1022(a) Report

Program: Section 1004 Counter-Drug Assistance

NATION: Panama PROJECT SUPPORT EFFORT: Armory Upgrade PROJECT CODE: 3432 FUNDING ($K): $l,100K DESCRIPTION: Armory upgrade in support of the SEN (Panama Navy) PROJECT TASK: Armory upgrade

Document: International Narcotics Control Strategy Report

Program: International Narcotics Control and Law Enforcement

U.S. Policy Initiatives and Programs Policy Initiatives. USG-supported programs focus on improving Panama's ability to intercept, investigate, and prosecute illegal drug trafficking and other transnational crimes; strengthening Panama's judicial system; improving Panama's border security; and promoting strict enforcement of existing laws. In 2009, NAS, Department of Homeland Security (DHS), Office of Defense Cooperation (ODC), and USCG provided resources for modernization and upkeep of SENAN, SENAFRONT, and PNP vessels and bases, and assisted SENAN with training personnel and maintaining key aircraft for interdiction efforts. Over the past year, the USG provided training, operational equipment and support to the multi- agency Tocumen Airport Drug Interdiction Law Enforcement Team. NAS coordinated training for the Drug Enforcement Administration (DEA) and U.S. Immigration Customs Enforcement (ICE) vetted units, as well as continued training for the quick response motorcycle team (?lynx? unit) in Tactical Law Enforcement procedures, internal affairs, Anti-Corruption investigations, and crowd control procedures. In 2009, NAS and CBP continued support for operational evaluation teams of U.S. Border Patrol Agents who work in the border areas with SENAFRONT. NAS also continued support for a major law enforcement modernization project with the PNP to develop its police leadership and implement community-based policing procedures. The program aims to improve community policing tactics, expand existing crime analysis technology, and promote managerial change to allow greater autonomy and accountability. In 2009, this program exposed the PNP leadership to the concepts of Community Policing. Due to the program's success, the PNP has incorporated the training concepts into the curriculum of its three training academies. NAS continues to provide material and training support to increase the effectiveness of the GOP's counternarcotics effort. Bilateral Cooperation. In 2009, the GOP continued to sustain joint counternarcotics efforts with U.S. entities, such as DEA and USCG, and worked to strengthen national law enforcement institutions with assistance from NAS. The DEA vetted unit continues to lead the region's vetted units in cocaine seizures. The NAS-funded ICE vetted unit doubled in size in 2009, and became a major asset for the PNP. This unit led several high-profile investigations and operations involving crimes with a nexus to the U.S. In 2009, Panama and the USG also coordinated to launch a Panamanian Trade Transparency Unit (TTU) in early 2010. The TTU will enhance information sharing for combating trade-based money laundering activities. Maritime cooperation improved in 2009. At U.S. urging, SENAN, SENFRONT, and the PNP formed a Joint Task Force (JTF) to increase the GOP's ability to leverage the entities' varied skills to combat drug trafficking when deployed to strategic locations in Panama. The JTF was created at the close of 2009, but plans are in process to establish a base of operations on Panama's Pacific Coast near the assistance from NAS. The DEA vetted unit continues to border with Colombia to work in conjunction with U.S. maritime assets to deny use of Panama's Pacific littorals waters to traffickers. In 2009, the USG and Panama cooperated to execute 18 cases under the provisions of the maritime counternarcotics bilateral agreement, which resulted in the removal of over 7.5 metric tons of cocaine, arrest of 76 smugglers, and seizure of 12 vessels.

Document: Bureau for International Narcotics and Law Enforcement Affairs Program and Budget Guide, Fiscal Year 2010

Program: International Narcotics Control and Law Enforcement

Program Objectives and Performance Indicators Enhance Panama's interdiction capability to disrupt the regional flow of illicit drugs, chemicals, weapons, and people by improving its law enforcement infrastructure and control of its borders and international ports of entry and exit.

• Assistance to increase operational readiness of the Panamanian National Police (PNP), the K-9 unit, airport groups, and special operations units within the Directorate of Information and Intelligence will result in improved capacity to identify major trafficking organizations, exploit their vulnerabilities and seize their assets.
• Strengthening GOP coastal/ interdiction capabilities with better inter-agency communications and augmenting anti-terrorism capability for specialized units will result in greater territorial integrity, especially with regard to incursions by the Fuerzas Armadas Revolucionarieas de Colombia (FARC) and other criminal organizations.

Document: Airmen aboard hospital ship providing humanitarian help

Program: Humanitarian and Civic Assistance

For Airmen traveling aboard the hospital ship USNS Comfort, 10 days spent in Colon, Panama, meant helping bring smiles to thousands of grateful Panamanians through the U.S. Southern Command´s mission Continuing Promise 2009.

The ship docked in Colon, May 24 through June 3, where teams of servicemembers, along with civilians from charity groups and academic missions, went to work assisting the Panamanians.

During the medical portion of the mission, personnel treated patients daily at three temporary medical sites in Colon. These sites offered minor medical care such as teeth cleanings, eye screenings and general medical examinations. They saw on average more than a thousand patients a day.

There also were several engineering sites with missions ranging from repairing a school playground to renovating a local medical clinic. Veterinarians and preventive medicine physicians provided roving services ensuring that the needs of the animal population were not forgotten.

Document: FY 2010 Congressional Budget Justification for Foreign Operations

Panama has experienced a period of strong economic growth and remarkable progress in strengthening its democratic institutions, marked by a firm commitment to free market economics. However, Panama’s stability remains under stress as a result of continued high poverty rates, very high inflation in food prices,, vast income disparities, and increasing crime related to the drug trade and perpetrated by local gangs and international drug traffickers, including the Revolutionary Armed Forces of Colombia (FARC). The United States will work in partnership with the Government of Panama (GOP) to consolidate Panama’s gains in democracy and economic growth, while fostering the institutionalization of legal and regulatory structures which will increase Panama’s capacity to be a guardian of the Panama Canal and a reliable ally.

Peace and Security: U.S. programs will continue to develop the capacity and professionalism of the Panamanian Public Forces' (PPF), including the new National Aero-Naval Service, the new National Frontier Service, the National Police, and the Institutional Protection Service. U.S. support will also help enhance respect for the rule of law in general, and the upcoming transition to an adversarial justice system, in addition to improving the management of resources within all the PPF. While Panama has excellent law enforcement and security cooperation relationships with the United States, institutional weaknesses and a lack of resources pose real limits on Panama’s capacity to deal with the increasing threat posed by international crime, including the FARC and other drug trafficking organizations, in addition to a growing local gang problem.

U.S. assistance programs seek to augment Panama’s counter-terrorism efforts, security programs, and maritime interdiction capacity. This will be achieved by improving the PPF’s equipment to allow for more effective response to threats; enhancing critical infrastructure and training facilities; strengthening the GOP's security capabilities on the border with Colombia; increasing the PPF's mobility; and providing communication equipment and logistical support packages for better command and control.

U.S. assistance programs will help strengthen the capacity of Panamanian governmental institutions to work with civil society and international partners to combat narcotics trafficking, transnational organized crime and gang-based violence, and terrorism. Assistance will support the equipment, operational, and training needs of the PPF, in particular in the areas of mobility, communications, and infrastructure with a focus on enhancing counter-narcotics and counter-terrorist capabilities. Given its strategic geographic location, particular emphasis will be placed on enhancing the control of Panama's borders with Colombia and Costa Rica, as well as the Pacific and Atlantic coastal zones and the country's ports and airports. U.S. assistance will also help strengthen anti-money laundering programs, with a particular emphasis on combating terrorist financing, and help modernize the PPF, with a focus on introducing community policing practices and problem solving capabilities.

Increases in FARC activity and transnational crime in Panama have led the Government to reorganize its air and maritime services and establish a new Border Force. These missions are in addition to the Government’s long-tem commitment to secure the Panama Canal. Since the restructuring, Panama’s Public Forces have been more aggressive in attempts to deny the FARC and other transnational criminals safe haven in Panama. To support this restructuring and increase in operational tempo, the Government of Panama is requesting additional training and equipment for the Public Forces tasked with extending state authority and security to remote parts of Panama. The FY 2010 funding will provide training and equipment to units responsible for supporting maritime interdiction, border operations, and canal security.

Governing Justly and Democratically: U.S. assistance will support democracy initiatives to foster continued GOP progress towards strong, open, and effective governance, which will contribute to and recognize Panama’s important role in regional security. In partnership with the GOP, the United States will support improvements in government transparency and accountability, improved governance, including a strengthened civil service law, judicial reforms, specifically related to implementation of new criminal and criminal procedures codes, as well as strengthening civil society’s role as a government watchdog. U.S. assistance activities will also complement those activities expected to be carried out under the Merida Initiative, including activities targeted toward communities that are vulnerable to crime.

Investing in People: U.S. assistance will help prevent and control the spread of HIV/AIDS. USAID's regional program, managed from Guatemala, will provide support to Panama to increase HIV/AIDS prevention practices and services directed mainly at those most at-risk, improve the HIV/AIDS policy environment, and improve the delivery of comprehensive care and treatment for people living with HIV/AIDS.

Economic Growth: In coordination with a large number of public and private stakeholders at the national and local levels, the United States will facilitate comprehensive social, economic, labor, and environmental reforms. These reforms will boost the country’s competitiveness by systematically strengthening the linkages between micro, small, medium, and large enterprises and increasing their participation in the international market. Improvements will be achieved by strengthening the capacity of private sector organizations and individual businesses to produce goods and services that meet international market requirements, including international labor and environmental standards.

The United States also plans to consolidate recent interventions in the Panama Canal Watershed, covering new sub-watersheds of significant importance for biodiversity conservation, and implementing strategic actions in key areas for biodiversity protection as a means of safeguarding this commercially and strategically important waterway. Activities will focus on: development of land use plans; sustainable and 643 environmentally friendly income and job generation; strengthening watershed management councils; improvement of local skills to participate in the growing tourism industry; policy reform; and promotion of best management practices.

The United States will also expand sustainable forest management activities initiated in the Darien region. The United States will partner with indigenous communities to help them better manage their forests and other natural resources. This activity will specifically target unsustainable resource use in indigenous reserves, and will address issues ranging from unmanaged timber harvesting, forest clearing, illegal logging, inefficient wood harvesting and processing methods, and unsustainable agricultural practices. The objective is to raise communities’ awareness of the value of their forests and to augment their capacity to sustainably manage their resources, while increasing incomes derived from forest-based activities.

Panama’s recent high economic growth has been characterized by an equally high degree of economic inequality. The United States will help the GOP achieve sustained and broad-based economic growth by increasing the competitiveness of micro, small, and medium-sized enterprises (MSMEs) in target sectors. U.S. programs will help improve the business value chain, trade, and investment environment; strengthen service providers and business capacity; expand access to appropriate technologies; and encourage reform of policies that hinder business growth and job creation. The GOP continues to take major steps to foster broad-based growth by establishing public-private sector dialogue. In FY 2010, funds will support publicprivate sector dialogue to promote at least one policy reform to improve implementation and compliance with international trade and investment agreements such as labor reform or sanitary standards. FY 2010 funds will also promote up to an additional five policy reforms during FY 2011.The United States will also expand sustainable forest management activities initiated in the Darien region. The United States will partner with indigenous communities to help them better manage their forests and other natural resources. This activity will specifically target unsustainable resource use in indigenous reserves, and will address issues ranging from unmanaged timber harvesting, forest clearing, illegal logging, inefficient wood harvesting and processing methods, and unsustainable agricultural practices. The objective is to raise communities’ awareness of the value of their forests and to augment their capacity to sustainably manage their resources, while increasing incomes derived from forest-based activities.

Panama’s recent high economic growth has been characterized by an equally high degree of economic inequality. The United States will help the GOP achieve sustained and broad-based economic growth by increasing the competitiveness of micro, small, and medium-sized enterprises (MSMEs) in target sectors. U.S. programs will help improve the business value chain, trade, and investment environment; strengthen service providers and business capacity; expand access to appropriate technologies; and encourage reform of policies that hinder business growth and job creation. The GOP continues to take major steps to foster broad-based growth by establishing public-private sector dialogue. In FY 2010, funds will support publicprivate sector dialogue to promote at least one policy reform to improve implementation and compliance with international trade and investment agreements such as labor reform or sanitary standards. FY 2010 funds will also promote up to an additional five policy reforms during FY 2011.

Document: International Narcotics Control Strategy Report

The USG encourages Panama to devote sufficient resources to enable its forces to patrol land borders along Colombia and Costa Rica, its coastline, and the adjacent sea-lanes, and to increase the number of arrests and prosecutions of major violators, especially in the areas of corruption and money laundering. The USG will continue to offer the GOP expertise and resources to strengthen Panama's ability to safeguard its citizens, confront drug traffickers, and ensure that law enforcement efforts are anchored in democracy. The USG will also continue to support law enforcement modernization through improved equipment, maintenance, strategic planning, decentralization of decision making, and community-oriented policing philosophies.

For its part, the USG will provide significant support in the coming year under the Merida Initiative—a partnership between the governments of the United States, Mexico, Central America, Haiti and the Dominican Republic to confront the violent national and transnational gangs and organized criminal and narcotics trafficking organizations that plague the entire region, the activities of which spill over into the United States. The Merida Initiative will fund a variety of programs that will strengthen the institutional capabilities of participating governments by supporting efforts to investigate, sanction and prevent corruption within law enforcement agencies; facilitating the transfer of critical law enforcement investigative information within and between regional governments; and funding equipment purchases, training, community policing and economic and social development programs. Bilateral agreements with the participating governments were in the process of being negotiated and signed at the time this report was prepared.

Document: International Narcotics Control Strategy Report

Policy Initiatives. USG-supported programs focus on improving Panama's ability to intercept, investigate, and prosecute illegal drug trafficking and other transnational crimes; strengthening Panama's judicial system; improving Panama's border security; and ensuring strict enforcement of existing laws. The Narcotics Affairs Section (NAS), Department of Homeland Security (DHS), Office of Defense Cooperation (ODC) and USCG provided resources for modernization and upkeep of SMN and PNP vessels and bases, and assisted the newly-created SENAN with training personnel and maintaining key aircraft for interdiction efforts. In 2008, the USG provided training and operational equipment and support to the multi-agency Tocumen Airport Drug Interdiction Law Enforcement Team. NAS coordinated training for the DEA and ICE vetted units, as well as the quick response motorcycle team ("lynx" unit) in Tactical Law Enforcement procedures, internal affairs and Anti-Corruption investigations and crowd control procedures.

NAS and CBP continue to organize operational evaluation teams of Border Patrol Agents who work in the border areas with National Police. NAS continued to develop a major law enforcement modernization project with the PNP to develop its police leadership and implement community-based policing procedures. The program focuses on many pillars including proven community policing tactics, expansion of existing crime analysis technology, and promotion of managerial change to allow greater autonomy and accountability. NAS provision of computers, office equipment, and other operational equipment will help the counternarcotics units achieve their goals.

Bilateral Cooperation. In 2008, the Torrijos Administration continued to sustain joint counternarcotics efforts with DEA and USCG, and worked to strengthen national law enforcement institutions with assistance from NAS. Maritime cooperation continued to be excellent. The U.S. Coast Guard provided training to SMN and APC personnel on waterside port security, maritime law enforcement, and port security-vulnerability assessments.

Document: Southern Partnership Station Returns to Panama

Program: Exercises

High speed vessel Swift (HSV 2) returned here yesterday for the second of two instruction evolutions in Panama during Southern Partnership Station (SPS).

Training teams from Navy Expeditionary Training Command, Naval Criminal Investigative Service and the Marine Corps Training and Advisory Group began their courses today with students from the Panamanian National Air and Maritime Service and the Panamanian National Police. The courses provide instruction in a variety of topics such as waterborne security, small boat navigation, basic coxswain, armed sentry, pier sentry, close quarters battle techniques, junior and senior enlisted leadership principles, boarding team member, port security and small boat repair.

“Overall we’ll be teaching 16 students waterborne security and coxswain techniques,” said small boat instructor Hull Technician 1st Class Jack Yates, from Chicago. “The students are going to learn high speed maneuvers and handling of boats in high pressure situations in order to facilitate high value asset protection such as security escorts or picket boat maneuvering.”

Document: Section 1209 Report to Congress on Foreign-Assitance Related Programs Carried out by the Department of Defense

Program: Humanitarian and Civic Assistance

Projects support USSOUTHCOM TSC goal to shape the environment by promoting democracy, regional prosperity, and stability.