1. Overview
Ernesto Pérez Balladares González-Revilla, famously known by his nickname El Toro"The Bull"Spanish, served as the 28th President of Panama from 1994 to 1999. Educated in the United States, Pérez Balladares began his career in banking before entering politics, serving under military ruler Omar Torrijos and later as a campaign manager for Manuel Noriega's preferred candidate in the 1989 presidential election. His presidency was marked by significant free market reforms, including the privatization of state-owned enterprises and Panama's entry into the World Trade Organization. However, his term also faced numerous controversies, such as the rehabilitation of former Noriega officials, disputes over media freedom, and a failed attempt to amend the constitution for re-election. Post-presidency, he encountered several legal challenges, including allegations of corruption and money laundering, though many charges were eventually dismissed. He was later convicted of slander. His political career reflects a complex period in Panamanian history, transitioning from military rule to a more robust democracy.
2. Early Life and Education
Ernesto Pérez Balladares' foundational years shaped his later political trajectory, marked by his birth in Panama and his advanced education in the United States.
2.1. Birth and Childhood
Ernesto Pérez Balladares González-Revilla was born on June 29, 1946, in Panama. He is married to Dora Boyd de Pérez Balladares, and together they have three daughters.
2.2. Education
Pérez Balladares pursued higher education in the United States, where he earned master's degrees from both the University of Notre Dame and the Wharton School of the University of Pennsylvania.
3. Early Career and Political Beginnings
Pérez Balladares' career before the presidency was rooted in the financial sector and early involvement in the Panamanian government under different political climates, including the military regime.
3.1. Banking Career
From 1971 to 1975, Pérez Balladares worked as a credit officer for the City Bank, serving both Panama and Central America, marking his initial professional experience in the financial sector.
3.2. Roles Under Omar Torrijos
Pérez Balladares gained early experience in national governance by serving as the Minister of Economy and Finances under the military government of General Omar Torrijos. This role provided him with insights into national economic management during a period of significant political influence by the military.
3.3. Founding the Democratic Revolutionary Party and Early Roles
In March 1979, Ernesto Pérez Balladares was one of the co-founders of the Democratic Revolutionary Party (PRD), a significant political entity in Panama. He subsequently became the Party Secretary in 1982. His early political career was not without challenges, as he clashed with the new military leader, Manuel Noriega, in 1984. This conflict led to Pérez Balladares spending several months in exile in Spain.
3.4. 1989 Presidential Election Campaign
Pérez Balladares played a central role as the campaign manager for Carlos Duque, who was Manuel Noriega's preferred candidate in the 1989 Panamanian presidential election. This election was highly controversial; international observers reported that opposition candidate Guillermo Endara was leading by a significant margin (3-to-1), but the Noriega government annulled the results before counting was complete. Following the United States invasion of Panama in December 1989, Endara was certified as the election's winner and sworn in as president. During the invasion, Pérez Balladares was briefly detained and interrogated by US forces due to his association with Noriega, but he was subsequently released.
4. Presidential Candidacy and Election
Ernesto Pérez Balladares' ascent to the presidency culminated in the 1994 general election, where he campaigned to distance himself from his past associations while appealing to national sentiment.
4.1. 1994 Presidential Election
In the 1994 presidential election, Ernesto Pérez Balladares ran as the candidate for the Democratic Revolutionary Party (PRD). His main opponents were Mireya Moscoso of the Arnulfista Party and the salsa singer Rubén Blades, who was then the president of the Papa Egoro party. During the campaign, his opponents attempted to highlight his past connections with Manuel Noriega, even broadcasting photographs of the two together. Pérez Balladares, however, actively disavowed this link, asserting that the contemporary PRD was "diametrically opposed" to Noriega's policies. Instead, he strategically positioned himself as a political successor to Omar Torrijos, who held a revered status as a national hero among Panamanians. The incumbent Arnulfista Party, led by Guillermo Endara, faced widespread public dissatisfaction due to perceived incompetence and corruption within Endara's government. This context contributed to Pérez Balladares' electoral success. He ultimately won the election with 33% of the vote, while Moscoso received 29% and Blades garnered 17%.
5. Presidency (1994-1999)
During his term, Ernesto Pérez Balladares implemented significant economic reforms, managed various domestic challenges and controversies, and navigated Panama's foreign relations, particularly with the United States.
5.1. Economic Policies and Reforms
Pérez Balladares' administration was characterized by a strong commitment to free market principles. He appointed several free-market economists to his cabinet to drive his agenda. During his presidency, both the national electric and telephone companies underwent privatization. In 1997, Panama achieved membership in the World Trade Organization, signifying its deeper integration into the global economy. In 1995, Pérez Balladares initiated a reform of Panama's labor code, a decision that sparked protests from 49 labor unions and led to a notable decline in his public popularity.
5.2. Domestic Administration and Controversies
Pérez Balladares undertook several domestic actions that drew significant public and political debate. A controversial policy involved the rehabilitation of numerous former officials from the Manuel Noriega era. This included his Housing Minister, who had been accused of involvement in torturing political prisoners during Noriega's rule, and his First Vice President, Tomas Altamirano Duque. Pérez Balladares ultimately pardoned over 200 individuals for crimes committed during the Noriega years, justifying these actions as a step towards national reconciliation.
Further controversies arose from financial decisions, such as the disbursement of 35.00 M USD in back pay to Noriega's paramilitary Dignity Battalions. Additionally, despite ongoing poverty across the country, his administration doubled the salaries of his cabinet members, a move that generated considerable criticism and highlighted the social and political implications of his domestic policies.
5.3. Foreign Relations
During his presidency, Ernesto Pérez Balladares actively pursued stronger diplomatic ties with the United States. Demonstrating this commitment, his government agreed with President Bill Clinton to accept 10,000 Cuban boat people at US military bases in Panama, a proposal that the previous administration of Guillermo Endara had rejected. Additionally, Panama provided asylum to the former Haitian military ruler Raoul Cédras as part of a negotiated settlement for his departure from Haiti. Pérez Balladares also pledged his commitment to joining the US-led anti-drug effort and committed to enacting new legislation aimed at preventing money laundering within Panama.
5.4. Minera Petaquilla Concession Controversy
In 1997, during the administration of Ernesto Pérez Balladares, the National Assembly of Panama approved Law 9, which authorized a highly contentious mining concession contract between the state and the company Minera Petaquilla S.A., later known as Minera Panama S.A. This contract, valid for 30 years, granted Minera Panama exclusive rights to explore, extract, exploit, process, refine, transport, sell, and market copper and other precious metals across a vast area of 34 K acre (13.60 K ha) in Coclé Province.
The agreement drew significant criticism from various quarters, with opponents arguing that the lopsided terms infringed upon Panama's mineral rights sovereignty. They contended that the deal relinquished excessive control over national resources to a private corporation and lacked sufficient foresight regarding its long-term environmental and economic impacts. Furthermore, allegations of improper influence or corruption emerged concerning the concession's approval process.
In December 2017, the Supreme Court of Justice of Panama declared Law 9 and the associated contract unconstitutional, following legal challenges that questioned its legality and Pérez Balladares' authority to broker such an agreement. This ruling was re-affirmed and became final in June 2021, after various appeals were rejected.
Subsequently, in December 2022, Panama's Official Gazette No. 29685 published Resolution No. 2022-234 from the National Directorate of Mineral Resources. This resolution ordered Minera Panama to suspend all mining activities and submit a comprehensive plan for safely preserving operations, in compliance with the Supreme Court's judgment. The measure aimed to prevent damages and address conditions that could harm the mining project, its workers, or the environment, given that Minera Panama no longer held a valid concession contract after the 2017 ruling. The resolution also underscored the government's unsuccessful attempts to negotiate a new contract acceptable to both parties.
5.5. Media Freedom and Governance Issues
Pérez Balladares' presidency also saw incidents that raised concerns regarding freedom of the press and broader governance issues. In 1996, Peruvian journalist Gustavo Gorriti, who worked for the Panamanian newspaper La Prensa, reported that an agent of Colombia's Cali Cartel had contributed 51.00 K USD to Pérez Balladares' presidential campaign. Initially, Pérez Balladares responded by threatening to sue for libel and labeling the report "journalistic terrorism." However, he later acknowledged the report's accuracy, stating it was "the first time, perhaps in my life, that I have had to swallow my words."
Despite this admission, when Gorriti's work visa expired the following year, the Panamanian government initially refused to renew it. This decision triggered widespread criticism from international press non-governmental organizations and domestic opposition parties, who viewed it as an attempt to stifle investigative journalism. Under significant pressure, the Pérez Balladares government eventually relented, and Gorriti's visa was renewed.
In 1998, Pérez Balladares also proposed constitutional amendments that sought to impose penalties on domestic or foreign journalists who "incite violent protest." Additionally, he proposed to ban the wearing of military fatigues or boots, measures that were viewed by critics as attempts to control public discourse and suppress dissent.
5.6. Constitutional Referendum for Re-election
In 1998, Pérez Balladares initiated a constitutional referendum aimed at amending the constitution to allow him to serve a second consecutive term in office. The Panamanian Constitution typically requires a former president to sit out two consecutive terms before being eligible to seek the office again. Pérez Balladares argued that an additional term was necessary to fully implement his ongoing reforms. Despite extensive spending by the Democratic Revolutionary Party (PRD) to promote the "yes" vote, the proposal was decisively defeated by a margin of almost 2 to 1. This outcome was widely interpreted, including by The Economist, as a testament to the resilience of Panama's democracy, demonstrating that it was "more resilient than many dared suppose."
5.7. End of Term and Transition
As Ernesto Pérez Balladares' presidency drew to a close and he was constitutionally ineligible to seek re-election, the Democratic Revolutionary Party (PRD) ultimately nominated Martín Torrijos, the son of Omar Torrijos, as its candidate for the 1999 Panamanian general election. However, Torrijos lost the election to the Arnulfista candidate, Mireya Moscoso.
In the final weeks of Pérez Balladares' term, his administration faced a torrent of accusations from the Arnulfista Party and then-president-elect Moscoso. These allegations included the illegal use of funds derived from the sale of government property, the issuance of last-minute contracts to political allies, and the alleged illegal sale of visas to Asian individuals seeking to enter the United States unlawfully. Critics also expressed concerns that Pérez Balladares was populating the new Panama Canal Authority, which was set to assume oversight of the Panama Canal on January 1, 2000, with his own business associates and "cronies," raising questions about potential conflicts of interest and governance transparency.
6. Post-Presidency Legal Issues
After leaving office, Ernesto Pérez Balladares faced multiple legal challenges and investigations concerning alleged misconduct during and after his presidency.
6.1. Corruption Allegations and Investigations
In November 1999, shortly after the end of his presidential term, Pérez Balladares' tourist visa to the United States was revoked following allegations of his involvement in the illegal sale of US visas to Chinese immigrants.
In September 2009, the Panamanian government initiated an investigation into the former president on charges of money laundering; however, initially, insufficient evidence was found to substantiate these allegations. On January 14, 2010, Pérez Balladares was placed under house arrest due to accusations that he had accepted money from the Lucky Games SA casino. This marked a significant event as he became the first former Panamanian president to be arrested. In April of the same year, the bank account of his company, Shelf Holding Inc., was frozen, and he was required to surrender his passport following a trip to Peru. In October 2010, District Attorney Jose Ayu Prado announced that there was sufficient evidence to formally charge Pérez Balladares with money laundering. A preliminary hearing for the case was held on April 11, 2011, but the judge subsequently dismissed the charge against him two weeks later. In December 2012, when Ayu Prado was nominated to the Supreme Court, Pérez Balladares publicly stated via Twitter that the appointment was a quid pro quo for the persecution he had faced.
6.2. Slander Conviction
Ernesto Pérez Balladares was later charged with slander for publicly calling comptroller Alvin Weeden a "narcocriminal." On February 17, 2012, Pérez Balladares was convicted of the charge. As a result, he was sentenced to either pay a 3.00 K USD fine or serve a year in prison.
7. Personal Life
Ernesto Pérez Balladares is married to Dora Boyd de Pérez Balladares. Together, they have three daughters.
8. Legacy and Evaluation
Ernesto Pérez Balladares' presidency (1994-1999) is viewed through a multifaceted lens, marked by significant economic reforms and contentious domestic and ethical issues. His administration is credited with implementing bold free-market policies, including the privatization of key state services and Panama's integration into the World Trade Organization, which supporters argue modernized the Panamanian economy. However, these economic changes, particularly the labor code reform, also triggered widespread protests and a decline in his popularity, highlighting the social impact of his economic agenda.
Critics often point to his decision to rehabilitate and pardon numerous officials from the Manuel Noriega era, along with the controversial disbursement of back pay to the Dignity Battalions and the doubling of cabinet salaries amid national poverty, as actions that raised concerns about ethical governance and reconciliation post-dictatorship. His administration also faced scrutiny over issues of media freedom, particularly the attempted non-renewal of journalist Gustavo Gorriti's visa and proposed constitutional amendments seen as restrictive to the press.
A defining moment of his legacy was the failed 1998 constitutional referendum to allow his re-election. Despite substantial campaign spending, the public's decisive rejection of this proposal was widely seen as a significant affirmation of Panama's democratic resilience and a rejection of attempts to concentrate power. The controversial Minera Petaquilla concession contract, approved during his term and later declared unconstitutional, further underscores concerns regarding national resource management and potential corruption.
In his post-presidency, the numerous corruption allegations, including those related to illegal visa sales and money laundering, despite many being dismissed, contributed to a critical perception of his ethical standards. Overall, Pérez Balladares' tenure represents a pivotal period in Panama's transition, characterized by both ambitious economic restructuring and persistent debates over transparency, human rights, and democratic principles.
9. Election History
Ernesto Pérez Balladares participated in several key elections throughout his political career, serving as a presidential candidate and a vice-presidential candidate.
| Election | Office | Term | Party | Vote Percentage | Votes | Result | Outcome |
|---|---|---|---|---|---|---|---|
| 1989 election | First Vice President of Panama | - | Democratic Revolutionary Party | 28.38% | 188,914 votes | 2nd place | Lost |
| 1994 election | President of Panama | 28th | Democratic Revolutionary Party | 33.30% | 355,307 votes | 1st place | Elected  |