A recent report revealed that a Panamanian law firm sent a letter on behalf of the Trump Organization to Panamanian President Juan Carlos Varela to request his intervention in an ongoing legal dispute over Trump Ocean Club Panama

 Request raises concerns about the Foreign Emoluments Clause, United States’ credibility on questions of corruption and rule of law

WASHINGTON—Today, U.S. Representatives Norma J. Torres (D-CA), co-Chair of the Central America caucus, Eliot L. Engel (D-NY), Ranking Member of the House Committee on Foreign Affairs, and Jerrold Nadler (D-NY), Ranking Member of the House Judiciary Committee, sent a letter to Trump Organization General Counsel Alan Garten to seek clarification following a recent report by the Associated Press that the Trump Organization sought the President of Panama’s intervention in a legal dispute with the owners of the Trump Ocean Club Panama. The lawmakers raised concerns over the leveraging of the diplomatic relationship between the United States and Panama to advance the private interests of the Trump Organization.  

“This request raises a key question: has the Trump Organization sought to leverage the Office of the President and the diplomatic relationship between the United States and Panama to advance the company's private interests? We note that President Trump never divested his holdings in the Trump Organization, and that the company continues to be managed by members of the President's family.  Any use of public office for private gain likely violates both federal law and ethics regulations, and would certainly merit further investigation,” wrote Torres, Engel, and Nadler.

The lawmakers continued, “Additionally, we are concerned that this letter could undermine the credibility of the United States on questions of corruption and the rule of law. By requesting that the President of Panama intercede in a judicial proceeding—in President Trump's name, no less—the letter shows a lack of respect for judicial independence in Panama, a country that has made considerable efforts to strengthen the capacity of its legal system to combat money laundering and corruption. It is troubling that the President of the United States would be among the principal beneficiaries of such a violation of the principle of judicial independence, and we applaud the President of Panama for his refusal to intercede in the legal proceedings in question.”

Previously, Torres and Engel have written to Drug Enforcement Administration Acting Director Robert Patterson and Trump Organization General Counsel Alan Garten to understand the organization’s knowledge of and role in sales at this property connected to allegations of money laundering and drug trafficking.

The full text of the letter is below.

Dear Mr. Garten,

We write to express concern regarding recent communications between the Trump Organization and the President of Panama, concerning a legal dispute over a property managed by the Trump Organization in Panama, and to request additional information.

On April 9, 2018, the Associated Press published a letter written by Panamanian law firm Britton and Iglesias on behalf of the Trump Organization, addressed to President Juan Carlos Varela of Panama.  In the letter, Britton and Iglesias requested that President Varela intervene in a legal dispute between the Trump Organization and the owners of a Trump-branded hotel in Panama City.  Specifically, the letter states: "We  appreciate your influence in order to avoid that these damages  are attributed  not to the other party, but to the Panamanian government.”

This request raises a key question: has the Trump Organization sought to leverage the Office of the President and the diplomatic relationship between the United States and Panama to advance the company's private interests? We note that President Trump never divested his holdings in the Trump Organization, and that the company continues to be managed by members of the President's family.  Any use of public office for private gain likely violates both federal law and ethics regulations, and would certainly merit further investigation.

A broader principle is also at stake. The Foreign Emoluments Clause of the United States Constitution provides that "no Person holding any Office of Profit or Trust wider [the United States] shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State."  The Clause was designed to prevent our country's leaders from being corrupted by foreign powers or influenced by their own financial interests at the expense of the nation.

Additionally, we are concerned that this letter could undermine the credibility of the United States on questions of corruption and the rule of law. By requesting that the President of Panama intercede in a judicial proceeding—in President Trump's name, no less—the letter shows a lack of respect for judicial independence in Panama, a country that has made considerable efforts to strengthen the capacity of its legal system to combat money laundering and corruption. It is troubling that the President of the United States would be among the principal beneficiaries of such a violation of the principle of judicial independence, and we applaud the President of Panama for his refusal to intercede in the legal proceedings in question.

As you know, combating corruption and strengthening the rule of law remains a significant foreign policy priority for the United States, and success in this area is critical to our national security. In Fiscal Year 2017 alone, the United States Congress appropriated $533,200,000 in Western Hemisphere funds within the State Department's International Narcotics Control and Law Enforcement Account. It is our responsibility to ensure not only that these funds are effectively utilized, but also that the President and all other relevant government officials are free from any conflicts of interest that could inhibit their ability to faithfully execute the underlying policy aims. Additionally, the Judiciary committee has jurisdiction over matters concerning Constitutional violations, and there is pending legislation that would clarify the application of the Emoluments Clause to the President and his business dealings. Because the President has not wholly divested himself from his business interests, we are concerned the behavior in these circumstances gives the appearance the President is profiting from relations with foreign governments, which is in violation of the Emoluments Clause of the Constitution.

We respectfully request that you provide, in a timely manner and in any event no later than May 9, 2018, answers to the following questions:

• Was the Britton & Iglesias letter sent at the request of President Trump or any other government official?  If so, whom?

• Was the letter sent at the request of the Trump Organization?

• Has the Trump Organization, or has Britton & Iglesias, made any other attempt to communicate with the President of Panama or any other political figures in Panama, with regard to the legal dispute concerning Trump Ocean Club Panama?

• What other communications has the Trump Organization, or any organization representing the Trump Organization, made with other foreign government officials with regards to Trump Organization properties, since President Trump assumed office?

• Since President Trump's inauguration, has the President or any member of his Administration participated in any decision to expand the presence of the Trump brand elsewhere in the Panamanian market?

• Given that President Trump has not divested his holdings in the Trump Organization, would he stand to benefit financially in any way if the President of Panama had granted the Trump Organization's request to intervene in this judicial process?

Thank you for your prompt attention this important issue.

Sincerely,

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