INTRODUCTION

On Sunday 22 October 2006 –three days ago- the People of Panama voted in an overwhelming majority “yes” to the proposed expansion of the Panama Canal. The preliminary results show that 77.8% voted “yes” and 22.2 voted “no”, with a turn-out rate of 43.32 % of the total electorate of 2,122,522. The officials results are expected this evening.

I am pleased to present this Verbal Report to the OAS Permanent Council on the findings of the OAS Electoral Observation Mission to Panama to monitor the referendum held three days ago –Sunday October 22, 2006- on the proposed expansion of the Panama Canal.

In July 24, 2006 the Government of the Republic of Panama and the Electoral Tribunal invited the Organization of American States to observe the referendum. The OAS Secretary General accepted the invitation and deployed an Electoral Observation Mission to observe the day of the election.

The GS/OAS signed two agreements with the national authorities to carry out its duties in compliance with the provisions of Article 24 of the Inter-American Democratic Charter. The agreement between the General Secretariat of the Organization of American States and the Government of Panama, signed on October 11, 2006, granted the privileges and immunities to OAS electoral observers. In addition, the GS/OAS signed an agreement with the Electoral Tribunal on October 20, 2006 to establish the scope and procedures of the Electoral Observation Mission in Panama.

ACTIVITIES

A total of fifty observers from sixteen different countries participated in the Mission, of which 20 where recruited internationally and the remainder consisted of volunteers of the diplomatic missions based in Panama City.

During its stay in Panama, the Mission focused its activities on the day of the referendum. OAS international observers covered seven out of nine provinces, as well as two indigenous regions in the country.

Once the Mission arrived in Panama, on the week prior to the referendum, it held meetings with government officials, electoral authorities, national observers, the Director of the Panama Canal Authority and representatives of groups both in favor (approx. 270 organizations) of and opposed (approx. 70 organizations) to the proposal to expand the Canal. The Mission also met with members of the diplomatic community and the media.

In the period prior to Election Day, various issues emerged, several of which were brought to the Mission’s attention during its program of meetings. Supporters of the proposal expressed their belief that the expansion of the waterway will promote international trade which would positively impact the development of the country and that there was a need to invest in the operations to renovate and update facilities. Opponents, for their part, raised a series of concerns related to the potential economic and environmental impacts that could arise as a result of the implementation of such a project, as well as presented concerns regarding the limited time and resources available to them to mount an extensive campaign.

The day of the referendum, observers visited 180 polling stations representing 525 polling booths in 42 districts of the country. They monitored all aspects of the voting process, including the opening and closing procedures at the polling booths, as well as the counting and transmission of results. In addition, the Mission observed the official counting procedure carried out by the Junta Nacional de Escrutinio (JNE).

FINDINGS

The following are among the most relevant findings of the Mission:

The Mission acknowledges that all parties involved collaborated to ensure that the electoral process on an issue of great importance to the country was efficiently and peacefully conducted. In particular, I would like to recognize the Electoral Tribunal and other authorities for their excellent work in preparing for and organizing the referendum.

The Mission congratulates the representatives of both groups (in favor and opposed to) for their democratic behavior throughout the electoral process. This contributed to a democratic and peaceful election. The Mission observed the presence of delegates of the group in favor in all polling stations visited by its team. It also observed a minimal presence of delegates of the group opposed to the proposal in all polling stations visited.

The Mission took note of the peaceful and orderly participation of the people of Panama in this process. Despite the lower-turn out rate in comparison to previous referenda held in Panama, the Mission considers that the election was carried out in accordance with international norms and standards that ensure free, fair and credible elections.

The Mission observed that the electoral authorities complied with all procedures established in the Constitution, as well as in the electoral legislation. The vast majority of polling stations visited by the observers opened and closed on time according to the existing electoral regulations. Observers also noted that polling station members were present throughout the day of the election and performed their duties in an effective manner.

On the day of the referendum, delegates from the “no” group handed the OAS Mission a copy of a document presented by them to the electoral authorities denouncing that members of the “Yes” group in the referendum distributed propaganda in the vicinity of some polling stations. The Mission forwarded this complaint to the competent authority, the Fiscal Electoral, and requested information on the procedures that this office will take on this matter. In addition, it provided the electoral body with information on other complaints received by its observers on the day of the referendum.

In relation with the claims received regarding the use of propaganda in the vicinity of the polling stations, the Mission noted that the lack of specificity of the applicable legislation could have led to confusion on this matter.

Before the referendum and during the day of the referendum, the Mission exchanged information with national electoral observers, including members of the Defensoría del Pueblo and the Comisión Justicia y Paz.


CONCLUSIONS AND RECOMMENDATIONS

The OAS Electoral Observation Mission concluded that the referendum of October 22 in Panama proceeded without any significant incidents or system-wide shortcomings that could jeopardize the transparency and outcome of the election.

With regards to the legislation regulating the use of propaganda on Election Day, the Mission finds that a more specific legal framework would prevent future incidents on this matter.

It is important to note that during our meeting with the “yes” and the “no” group all expressed the importance of the Panama Canal and their expectation that the benefits emanating from the expansion of the Canal would benefit all Panamanians.

Given the importance of this effort, in the planning and execution one of the main challenges ahead will be to take into consideration the concerns expressed by all stakeholders regarding this project

The Mission expresses its gratitude to the authorities and citizens of Panama for the support provided for the fulfillment of its objectives. It also expresses its appreciation to the Government of the People’s Republic of China, the Republic of Korea, and the United States for their contributions to the Mission.

I would like to take this opportunity to congratulate the People of Panama for their peaceful and orderly participation in this process on an issue of great importance to the country.

I would also like to thank the observers who participated in the Mission for their commitment and integrity to fulfill the Mission’s objective, and to the Representative of the OAS General Secretariat in Panama, and his team, for the essential support for the Mission.

In closing, let me take this opportunity to thank Secretary General Jose Miguel Insulza for his confidence in designating me as Chief of the Observation Mission and also express deep appreciation to the Deputy Chief of Mission, Ms. Katalina Montana of the Department of Political Affairs and the Core Group for the excellent preparatory work and effective execution on the day of the referendum.

The final report of the Observation Mission will be presented to the Permanent Council with 6 weeks, and will include a more detailed report accompanied by some recommendations.

Thank you.