The Supervisory Commission of the Fondo de Ahorro de Panama issues its Opinion Report for the Fiscal Year 2018
Panama | June 26, 2019
The Supervisory Commission (the “Commission”), the representative body of civil society, issued its Opinion Report for the Fiscal Year 2018 (the “Report”) regarding the administration of the Fondo de Ahorro de Panama (“FAP” or “Fund”)
The Report is issued in accordance with the provisions of Law 38 of June 5, 2012 (the "Law") and addresses aspects related to the financial results and performance of the Fund, its management model and corporate governance, in addition to the main goals and strategic aspects proposed for the next term. (Access the 2018 Opinion Report here in Spanish only)
In the Report, the Commission expressed that the administration of the Fund by the Board of Directors has been consistent with the objectives defined in the Law, under prudent investment decision-making and in accordance with the directives established by the Ministry of Economy and Finance. The Commission highlights that the investment decisions taken by the Board of Directors in its administration of the Fund have protected its initial seed capital.
The Commission considers it appropriate to evaluate the following aspects, among others, to further strengthen the Fund's long-term approach for the benefit of future generations of Panamanians:
i. Evaluation of the accumulation rule or other mechanisms to strengthen the Fund, including contributions from the
Panama Canal; and
ii. Incorporating catastrophic insurance coverage to hedge the contingency risk derived from the withdrawal from the
Fund as result of possible natural disasters.
Moreover, Julio C. Fábrega, representative of the National Council of Organized Workers (CONATO, in Spanish) and Chairman of the FAP’s Supervisory Commission, expressed that “this Opinion Report, which was a team effort, seeks to provide Panamanians with an independent prospective regarding the management of the Fund; we are confident through its disclosure, this Report will meet the expectations of the civil society, which we represent.”
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:
Establish a long-term savings mechanism for the Panamanian State; and
Establish a stabilization mechanism in case of a state of emergency (declared by the Cabinet’s Council) and economic slowdowns.