Chapter II, Section Two

LAW No. 19
(of June 11, 1997)

Chapter II - Administrative Organization,

Section Two - The Administrator and Deputy Administrator

Article 22. The Administrator is the highest-ranking executive officer and the legal representative of the Authority, and is responsible for its administration and the implementation of the policies and decisions of the Board of Directors. He shall exercise his authority and duties according to the National Constitution, this Law, the Regulations, the respective annual budget of the Authority and the extraordinary credits, and the resolutions and agreements adopted by the Board of Directors, subject, in all instances, to oversight by the Authority. The Administrator may partially delegate his powers to the Deputy Administrator and other Authority officials or workers according to the respective regulation.

Relatives of the Administrator or the Deputy Administrator up to the fourth degree of consanguinity and second of affinity may not be appointed as Authority officials.

Article 23. The following are the requirements to occupy the post of Administrator or Deputy Administrator:

  1. Be a Panamanian citizen.
  2. Hold a university degree or have sufficient practical experience, in the judgment of the Board of Directors.
  3. Must not have been convicted of an offense with criminal intent or an offense against the Public Administration.
  4. Must not be related, at the time of appointment, to the members of the Board of Directors up to the fourth degree of consanguinity or second of affinity. The Administrator and Deputy Administrator may not be related to each other in any manner as described above.

Article 24. The Administrator shall be appointed for a seven-year term, and may be re-elected for an additional term.

Article 25. The Administrator shall have the following functions and duties:

  1. Represent the Authority in any judicial or administrative action and negotiation.
  2. Develop and implement the decisions of the Board of Directors.
  3. Establish salaries and other payments, as well as appoint, transfer, promote, apply disciplinary actions, and remove Authority officials, workers in positions of trust, and workers whose appointment is not the direct responsibility of the Board of Directors, pursuant to what is established in this Law, the Regulations, and the collective bargaining agreement in any case.
  4. Prepare the draft annual budget and supplementary reports of the Authority, in conjunction with the annual report on Authority activities and projects, and submit them for consideration by the Board of Directors.
  5. Make periodic reports to the Board of Directors, as it may so require, on the development of Authority activities and projects and the performance of the other aspects of its budget.
  6. Draft the regulations for the proper operation and adequate modernization of the Canal and submit them for consideration and approval by the Board of Directors.
  7. Enter into and award legal actions and contracts to which the Authority is a party.
  8. Approve the indemnity payments to third parties for damages sustained by them by reason of ship accidents while navigating the Canal, provided that the amount of such indemnity does not exceed the limits set by the Board of Directors.
  9. Approve the payment of compensation and claims arising from reasons other than those contemplated in item 8 of this Article provided they do not exceed the limits set by the Board of Directors.
  10. Reply to any inquiry made by the Board of Directors regarding the setting of tolls, fees, and rates for Canal transit and related services rendered by the Authority.
  11. Provide active and passive administration of Authority patrimony and funds, and ensure the efficient execution of its budget.
  12. Submit, annually, to the Board of Directors, financial statements audited by independent certified public accountants, within the three months following the close of the corresponding fiscal year, and unaudited financial statements when the Board so requires.
  13. Coordinate the functions and activities of the Authority, as required, with the Executive Branch, autonomous entities, the Legislative Assembly, the Judicial Branch, the Public Ministry, municipalities, and the private sector.
  14. Propose to the Board of Directors any projected decisions, resolutions, and measures deemed necessary for the best management of the Authority.
  15. Organize and coordinate the trade and marketing strategy of the Canal and its public relations policy.
  16. Appoint, subject to the ratification of the Board of Directors, the directors of the main bureaus.
  17. Attend, with a right to speak, the meetings of the Board of Directors, except those which at the Board's discretion must be held without his being present.
  18. Exercise summary jurisdiction to collect the obligations due the Authority.
  19. Propose to the Board of Directors the operative and administrative structure of the Authority.
  20. Perform any other function as assigned by this Law, the Regulations, or the Board of Directors.

Article 26. The Administrator shall be relieved during his temporary or occasional absences by the Deputy Administrator, who must meet the same requirements as the Administrator; and the Deputy Administrator shall fill the vacancy left by the Administrator upon his resignation or death, or for any other reason, until a replacement is appointed and takes office.

The Board of Directors shall set forth in the Regulations the line of succession in the absence of the Administrator and Deputy Administrator.

Article 27. The Administrator may only be suspended or removed from his post with the concurrence of eight members of the Board of Directors.

The Administrator and the Deputy Administrator may also be suspended or removed because of a proven physical, mental, or administrative incompetence, as determined by the Board of Directors.

The suspension or removal of the Administrator or the Deputy Administrator shall be applied without prejudice to any other applicable criminal sanction.


Section Three: The Inspector General