The reason for Solidaridad to establish an entity in Panama was – in line with our vision on Southern ownership – to create Solidaridad Latin America. Panama has been chosen as location for the legal entity of this branch because their local laws offer the best possibilities in Latin America for financial administration and management. The fact that the country has a relatively stable currency (the USD) prevents losses resulting from currency fluctuations. Establishing a legal entity in Panama is relatively cost effective. We aspire to spend a maximum share of Solidaridad funds on our mission.
A mission which is in sharp contrast with the activities of companies and wealthy people trying to avoid taxes, working with illicit finances and conducting money laundering through the creation of offshore companies. These are activities that Solidaridad does not want to be associated with in any way. Tax avoidance is simply not in question for our operations in Panama. The activities of Solidaridad in Panama (financial transactions) are per definition not taxable. Not in Panama, and not in any other part of the world. So this has not influenced our decisions in any way.
Solidaridad aims to be fully transparent about the Panamanian foundation. The accounts of the foundation in Panama are public and audited by an independent auditor. Solidaridad only works with legal funding from impeccable origin and spends it on the implementation of our programmes. Sources can be found in the financial statements.
The accounts of the foundation in Panama are public and can be found here.
These regional annual accounts are the consolidation of the individual annual accounts of the Solidaridad offices in the region: Argentine, Brazil, Paraguay, Colombia and Guatemala. This consolidated regional annual account also includes direct payments of the region to projects in other parts of the world. The accounts of all Solidaridad offices, as consolidated in this report, are public and audited by internationally renowned accountancy firms. The regional consolidated account is audited by Baker Tilly, a leading international accountancy firm.
The Board of Directors of the foundation in Panama consists of representation from the directors of the Solidaridad offices in the region. This in line with Solidaridad’s vision of local ownership and governance.