Featured Commentary · Panama
Development Without Due Process Weakens Democracy
By Louis Bacon
A dispute unfolding in Panama over a real estate project raises fundamental concerns about the rule of law, environmental review, and the ability of scientific and legal experts to participate in public processes without intimidation. It centers on a foreign investor using antiquated lawfare in an emerging Latin country against small NGOs and locals.
The case is a port project, pushed by US developer John McKeown of Ocean Pacific Investments in David, Panama. The proposed Puerto Barú sits amidst one of the largest mangrove ecosystems in all Latin America – Manglares de David – which anchors a pristine community whose collapse would have far-reaching environmental degradation. Mangroves support and protect coastlines, store carbon, and filter water, in addition to providing habitat for countless species of marine life that support biodiversity and local communities – think ‘coastal rainforests’.
Scientific and legal experts tasked with evaluating the project have raised evidence-based concerns about the port’s ecological impact and its compliance with local Panamanian environmental law. In response, Ocean Pacific is weaponizing Panama’s law against its own citizens – bringing civil and criminal defamation claims against experts and securing court-ordered asset freezes of bank accounts against the NGOs and advocates involved in the review process. These schemes do not test the science; rather, they disable the scientists and skeptics who are raising questions by utilizing a legal loophole left over from Panama’s past – ironically reminiscent of past foreign exploitation of defenseless Panamanians.
Reasonable people can disagree about the merits of various development projects. What should not be in dispute is that the silencing of critical environmental voices – simply because they cannot afford to continue the research essential for a fair and transparent review – is wrong.
This type of criminal defamation against individuals is incredibly rare in McKeown’s home country and has been widely considered an unconstitutional abuse since a 1964 ruling by the U.S. Supreme Court (Garrison v Louisiana). However, in certain Latin American countries that inherited Spanish colonial penal codes, a ‘crime against honor’ can still be waged – with severe penalty.
The Inter-American Court of Human Rights has repeatedly ruled that criminalizing speech is a violation of freedom of expression. As a result, a number of Latin American countries have decriminalized defamation or reformed their codes to prioritize fines over jail.
This is not yet the result in Panama, and, because of the disgraceful actions by the foreign plaintiff Ocean Pacific, local organizations involved can no longer pay their staff, conduct research, or pursue lawful advocacy – instead potentially landing in prison. What a neighbor! This takes bullying to a new level.
As a victim of defamation myself, I was also viciously bullied by an expert tormentor in the practice of libel but won one of the largest civil fines for defamation in US history – so I know a bit about bullying, defamation and civil recourse. This persecutor also tried to wage his own private criminal prosecution against me in an environmental battle in the Bahamas which was thankfully thrown out by the Attorney General there. This erstwhile plaintiff now resides in criminal custody for far worse crimes than slander.
Reasonable people can disagree about the merits of various development projects. What should not be in dispute is that the silencing of critical environmental voices – simply because they cannot afford to continue the research essential for a fair and transparent review – is wrong. It is outrageous that foreign interests are attempting to gag Panamanians who are working to protect their own country’s environment for future generations.
Panama was one of the first nations to enshrine environmental protection as a legal right, and it is a model of an emerging country pursuing environmental responsibility and sustainable development. But legal protections are only meaningful when those who rely on them can enforce and enjoy them without intimidation. An obscure, dated law should not be used to deter good-faith environmental oversight today.
This is especially important to me because I have spent years involved in the stewardship and long-term conservation of Islas Secas, an island archipelago 50km from the proposed port site. Although these islands would not be directly affected, the surrounding region and natural landscapes – some of the most beautiful in the world – would be, were development to proceed.
Years of collective effort have been dedicated to preserving this natural bounty for generations to come.
For that reason, their fight is now my fight.
Manglares de David, which plays a crucial role in Panama’s endangered species conservation efforts, would be directly affected, too. Years of collective effort have been dedicated to preserving this natural bounty for generations to come.
For that reason, their fight is now my fight. Access to justice should not depend on who can afford to be heard.
This is not just a local dispute. It is a global warning, raising concerns about whether environmental review and lawful civic participation can be stifled when they are at odds with powerful interests. Enforcement of an archaic precedent would be doubly chilling: defending the planet could be costly in terms of finances but also in terms of freedom.
It is fitting that UNESCO, which designated neighboring Coiba National Park a World Heritage Site, has issued a formal warning that the Puerto Barú development poses a potential threat to this environmental treasure.
We have a shared responsibility to respect independent expertise and a fair and open legal process as we work both for sustainable development and to safeguard critical global ecosystems. Environmental stewardship, open inquiry, and justice depend on the same foundation – and when that foundation is weakened, no one wins.
ABOUT THE AUTHOR
LOUIS BACON
Louis Bacon is a conservation philanthropist and founder of Moore Capital Management and The Moore Charitable Foundation. He has dedicated decades to land, water, and wildlife preservation across the Americas.