The Supervisory Commission of the Fondo de Ahorro de Panama issues its Opinion Report for the Fiscal Year 2017
Panama | July 3, 2018
In June 2018, the Supervisory Commission (the “Commission”), the representative body of civil society, issued its Opinion Report for the Fiscal Year 2017 (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 2017 Opinion Report here in Spanish)
In the Report, the Commission expressed that the management of the Board of Directors of the FAP – supported by its Secretariat – has been consistent with the objectives defined in the Law, under prudent investment criteria and competitive results, in addition to evidencing a high level of transparency and professionalism in such management. The Commission also emphasizes that the actions taken by the Board of Directors to establish the Fund's Foundational Capital were key to protecting 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:
i. An analysis of the effect on the Fund due to the lack of contributions from the Panama Canal;
ii. The evaluation of the accumulation rule or other mechanisms to strengthen the Fund;
iii. The contribution of new capital from various sources of funding to promote the growth of the Fund;
iv. The obtaining of a catastrophic insurance by the Trustor that insures the country of possible contingencies caused by
natural disasters; and
v. The creation of additional reserves to protect the Foundational Capital of the FAP.
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.