Noriega preferred to remain behind the scenes, rather than become president, and to avoid the public scrutiny that came with the post. He did not have a particular social or economic ideology, and used military
nationalism to unify his supporters. The
Partido Revolucionario Democrático (Democratic Revolutionary Party, PRD), which had been established by Torrijos and had strong support among military families, was used by Noriega as a political front for the PDF. This party drew considerable support from low-income employees brought into the government bureaucracy by its expansion under Torrijos and Noriega. Noriega compelled the
Panamanian National Assembly to pass Law 20 of 1983, which was supposedly aimed at protecting the Panama Canal from communists, and allowed a huge influx of U.S. weapons to the Panamanian military. The law also tripled the size of the military forces. Noriega's period in power saw significant
capital flight from Panama; according to Kempe, this was at least in part because wealthy individuals worried that their wealth would be seized by Noriega's administration. The military government of Torrijos had maintained its power in large part by extracting resources from Panama's expanding service sector, particularly its illicit portions. According to political scientist Steve Ropp, Torrijos was a "gifted politician with a genuine concern for improving the economic lot of the average Panamanian", but his individual talent had a relatively small role to play in preserving his government. When Noriega created the PDF in 1983, he brought into its control Panama's customs and immigration apparatus, as well as the country's whole transportation network. This expansion of the military's role occurred simultaneously with a large growth in the cocaine trade, as well as in markets for weapons in various military conflicts in Central America. The profits the military reaped from these activities gave Noriega's military regime considerable financial clout. Noriega took control of most major newspapers by either buying a controlling stake in them or forcing them to shut down. The government also harassed, intimidated, or exiled individual journalists and editors. The newspaper
La Prensa, which remained independent and was frequently critical of Noriega, had its staff intimidated and its offices damaged; eventually, it too was forced to close. In May 1984, Noriega allowed
the first presidential elections in 16 years. Noriega and Díaz Herrera picked
Nicolás Ardito Barletta Vallarino to be the PRD's candidate, with the intention of keeping him under close control. When the initial results showed Arias, who had the support of much of the opposition, on his way to a landslide victory, Noriega halted the count. Dinges said that he could find no one willing to confirm persistent reports that he received a $200,000 per year stipend from the CIA. Prior to and during Noriega's trial, Noriega's lead attorney Frank A. Rubino claimed that Noriega had received $11 million in payments from the CIA. In January 1991, federal prosecutors filed a financial report indicating that Noriega had received a total of $322,000 from the United States Army and the CIA over a 31-year period from 1955 to 1986. In June 1988, Tokyo gave its official backing to the Panamanian military government.
Drug and weapons operations Panama's and Noriega's involvement in drug-trafficking grew considerably over the early 1980s, peaking in 1984. Intensifying conflicts in
Colombia,
El Salvador,
Guatemala, and
Nicaragua had led to the creation of covert transportation networks that Noriega used to transport drugs to the U.S., particularly
cocaine. During this period, Colombia's
Medellín Cartel was also seeking allies. Noriega became intimately involved with their drug trafficking and money-laundering operations, and received considerable sums as protection money, bribes, or shares of profits. In June 1986, investigative journalist
Seymour Hersh recorded a U.S.
White House official as saying that reducing Noriega's activities could greatly reduce international drug trafficking. Hersh reported unnamed U.S. officials as saying that Noriega had amassed a personal fortune in European banks as a result of his illegal activities, as well as owning two homes in Panama and one in France.
Murder of Spadafora and aftermath Hugo Spadafora was a physician and political activist who had first clashed with Noriega when they were both members of Torrijos's government. Though an ally of Torrijos, he and Noriega had been personal enemies for a long time. Despite not being a member of the opposition, he became a vocal critic of Noriega after returning to Panama from Guatemala in 1981. Spadafora amassed evidence of corruption within the government by using his position as an ally of Torrijos to question Noriega's allies, including Rodriguez and Carlton. This included a lengthy conversation with Carlton in mid-1985 after his drug operations had collapsed due to conflicts over a missing shipment, and he had received negative publicity in the Panamanian press. In September 1985 he accused Noriega of having connections to drug trafficking and announced his intent to expose him. The drug trafficking charges threatened Noriega's support among his own constituency of middle class individuals who had benefited under his and Torrijos's government. According to writers R. M. Koster and Guillermo Sánchez, on an occasion when Spadafora was traveling by bus from Costa Rica to Panama, witnesses saw him being detained by the PDF after crossing the border. His decapitated body was later found wrapped in a
United States Postal Service mail bag showing signs of brutal torture. Noriega was widely believed to be responsible for the murder, and according to Koster and Sánchez, the U.S. had intelligence implicating Noriega. On the day of Spadafora's arrest, the U.S. National Security Agency monitored a telephone conversation between Noriega and Luis Córdoba, the military commander in Chiriquí province where Spadafora was arrested. During the conversation Córdoba told Noriega, "We have the rabid dog." Noriega responded, "And what does one do with a dog that has rabies?" Spadafora's murder badly damaged Noriega's image, both within and outside Panama, Barletta was highly regarded in the Reagan administration, and his removal brought a downturn in the relations between the U.S. and Noriega. After Spadafora's murder the U.S. began to view Noriega as a liability rather than an asset, despite his ongoing support for U.S. interventions elsewhere. The indictment accused him of "turning Panama into a shipping platform for South American cocaine that was destined for the U.S., and allowing drug proceeds to be hidden in Panamanian banks". The
Alianza Democrática de Oposición Cívica (Democratic Alliance of Civic Opposition), an opposition coalition, nominated
Guillermo Endara, a member of Arias' Panameñista Party, and two other prominent oppositionists,
Ricardo Arias Calderón and
Guillermo Ford, as vice-presidential candidates. Anticipating fraud, the opposition tracked ballot counts at local precincts on the day of the election (local ballot counts were done in public). As an exit poll made it clear that the opposition slate was winning by a wide margin, reports of missing tally sheets and seizures of ballot boxes by the PDF soon emerged. In the afternoon of the day after the election, the
Catholic bishops conference announced that a quick count of public tallies at polling centers showed the opposition slate winning 3–1, a larger margin than it had claimed in 1984. In contrast, official tallies the day after that, however, had Duque winning by a 2–1 margin. Rather than publish the results, Noriega voided the election, claiming that "foreign interference" had tainted the results. Former U.S. President Jimmy Carter, present in Panama as an observer, denounced Noriega, saying the election had been "stolen", as did
Archbishop of Panama Marcos G. McGrath. Noriega had initially planned to declare Duque the winner regardless of the actual result, but Duque knew he had been badly defeated and refused to go along. The next day, Endara, Arias Calderón, and Ford rolled through the old part of the capital in a triumphant motorcade, only to be intercepted by a detachment of Noriega's paramilitary
Dignity Battalions. Arias Calderón was protected by a couple of troops, but Endara and Ford were badly beaten. Images of Ford running to safety with his
guayabera shirt covered in blood were broadcast around the world. When the 1984–1989 presidential term expired, Noriega named a longtime associate,
Francisco Rodríguez, acting president. The U.S. recognized Endara as the new president. Noriega's decision to void the election results led to
another coup attempt against him in October 1989. A number of Noriega's junior officers rose up against him, led by Lieutenant Colonel Moisés Giroldi Vera, but the rebellion was easily crushed by the members of the PDF loyal to Noriega. After this attempt, he declared himself the "maximum leader" of the country. The rebels were captured and taken to a military base outside Panama City, where they were tortured and then executed. ==U.S. invasion of Panama==