Press Release

The Supervisory Commission of the Fondo de Ahorro de Panama issues its Opinion Report for the Fiscal Year 2021

Panama | June 23, 2022

The Supervisory Commission (the “Commission”) of the Fondo de Ahorro de Panama (“FAP” or “Fund”) issued on June 22, 2022, its Opinion Report for the Fiscal Year 2021 (the “Report”). The Commission is the representative body of civil society within the governance of the Fund.

The Report – per the provisions of Law 38 of June 5, 2012, that creates the FAP (the “FAP’s Law”) – is issued annually to evaluate the Fund and its management model, corporate governance, financial results, and main strategic goals (access the 2021 Opinion Report here, in Spanish only).

In the Report, the Commission assesses that the management of the Fund complied with the application of prudent economic and financial reasoning in relation to the implementation of an investment strategy that is in accordance with the objectives defined in the FAP´s Law and the guidelines established by the Ministry of Economy and Finance (“MEF”).

The Commission, chaired in the current period by the representative of the National Council of Private Enterprise, expressed that “With this report, the Commission seeks to provide the National Government an independent opinion about the value and importance of the FAP for the country. It is important that the MEF seek, as state policy, the legal mechanisms that will ensure the FAP receive the pending contributions from the Panama Canal Authority for the 2018-2021 period.”

The Commission included in its Report the following opinions and observations that in its estimation strengthen the Fund’s long-term management for the benefit of future generations of Panamanians:

  1. The Transfering to the Fund of Pending Contributions: strengthen the FAP with the transfer of the B/.725.3 million outstanding in contributions that by law correspond to the FAP, as a result of the Panama Canal Authority distributions to the National Treasury during the 2018-2021 period.

  2. Obtaining Catastrophe Insurance: The government should consider obtaining catastrophic insurance to cover the risk of monetary contingency derived from possible natural disasters in the country. We ask the MEF to provide the terms and conditions that it intends to require from the provider of this insurance.

  3. Accountability: The need for the MEF to provide an accounting report of capital withdrawn to address the effects of the COVID-19 pandemic during 2020.

  4. Protect the Assets of the FAP: Consider the inclusion of the FAP in a constitutional article and provide it with an appropriate legal status

  5. Promote the Role and Importance of the FAP: Teach the citizens of Panama about the role and importance of investing, savings, and the benefits that this entails for the country.

  6. Strengthen the Investment Framework: evaluate the feasibility of the FAP investing part of its assets in the country to promote national development, together with the possibility of strengthening its investment framework with the eligibility of new asset classes.

Members of the Commission
The Commission is composed of representatives of the following organizations:

  • The Association of Certified Public Accountants of Panama;

  • The Association of Economists of Panama;

  • The Ecumenical Council of Panama;

  • The National Council of Organized Workers; and

  • The National Council of Private Enterprise.

 

About the Fondo de Ahorro de Panama
The Fund was created by Law 38 of June 5, 2012, whose main objectives are:

  1. Establish a long-term savings mechanism for the Panamanian State; and

  2. Establish a stabilization mechanism in case of a state of emergency (declared by the Cabinet’s Council) and economic slowdowns.

Contact: Administration, +507-394-5776/5706, administrador@fondoahorropanama.com

For additional information visit www.fondoahorropanama.com
 
 
###