Monday
Monday 21st July 2025.
July 20, 2025
At least $45 million in alleged damages to the State were the result of audits conducted by the Comptroller General’s Office during the first half of 2025. Although all indications are that the amount will be higher.
The data, included in a recent management report, exposes the scope of alleged irregularities detected in various public institutions between 2019 and 2024 , and fuels public expectations that the findings will not remain solely on paper.
The entity reported that 237 audits were submitted between January and June, of which 88 were forwarded to the Public Prosecutor’s Office and the rest to the Court of Accounts.
He also detailed that more than 500,000 documents were endorsed during that period, mobilizing $30 billion.
According to the Comptroller’s Office, this money “stopped sleeping on desks” and began circulating in the economy, following a reduction in the approval process, which went from 180 days to less than 45.
With an additional 398 audits underway, the oversight body hopes to maintain the same pace. However, beyond the numbers, the true impact will depend on the progress of investigations and the translation of responsibilities into concrete consequences.
Although specific details remain confidential, the agency warned that the mishandled amounts could exceed $20 million in this first phase of audits.
This is a scandal that originated during Laurentino Cortizo’s administration: parallel decentralization, millions of dollars in funds from the National Decentralization Authority that were distributed according to political criteria. The majority of these millions ended up in communal councils and municipalities controlled by authorities close to influential representatives of the Democratic Revolutionary Party (PRD), the group that governed the country during the previous five years.
Added to this is a potential financial loss exceeding $24 million , which is the focus of the investigations being conducted by the Anti-Corruption Prosecutor’s Office into the IFARHU Economic Aid Program. Currently, the former director of IFARHU, Bernardo Meneses, is provisionally detained in connection with this case.
The Anti-Corruption Prosecutor’s Office has commissioned the Judicial Investigation Directorate (DIJ) to locate the district representatives and mayors who received funds from the Social Interest Program (PDIS) of the National Decentralization Authority (AND) and who are under investigation for alleged embezzlement.
The order was issued by the prosecutor’s office after conducting a series of investigations at the National Bank of Panama (BNP), the Ministry of Economy and Finance (MEF), and the National Administration of Finance (AND), where the names of the individuals who received checks from the PDIS program were identified.
The investigation carried out by the Ministry of Economy and Finance (MEF) and the National Public Prosecutor’s Office (BNP) also focused on locating information related to a series of complaints filed in 2024 and verifying the disbursements made by the National Administration of Finance (AND) to 70 community councils and municipalities that received PDIS funds.
The prosecutor’s office also requested from the National Bank of Panama (BNP) a certification of the PDIS program accounts assigned to each communal council and municipality participating in the program .
The information requested from the BNP seeks to identify the individuals and legal entities that received funds from decentralization through the PDIS .
The prosecutor’s office also tracks the movements of the funds delivered to each community council and municipality that participated in the program.
Among the municipalities under investigation are: the municipalities of Capellanía and Natá in the province of Coclé and the municipality of Arraiján in West Panama .
The communal councils of La Villa de los Santos, La Miel, El Carate and La Palma, in the province of Los Santos, are also mentioned.
The communal councils of Amelia Denis de Icaza, Belisario Porras, and Ernesto Córdoba in the district of San Miguelito.
In the province of Chiriquí, there are the communal councils of Tolé, Volcán, Quebrada de Piedra, Solano and Dolega Cabecera.
The list also includes the municipal councils of San Francisco, Pedregal, Ancón, and Pacora in the province of Panama.
While in the province of Colón there are the communal councils of San Juan, Barrio Sur, Playa Chiquita, Puerto Pilón, Cristóbal, Barrio Norte, Cristóbal Este and Salamanca.
Meanwhile, in the province of Panama Oeste, the communal councils of the districts of Burunga, Veracruz, Villa Rosario, Lídice, La Trinidad, Nueva Gorgona, Ciri Grande, San Carlos, Ciri de Los Sotos, El Coco, and El Higo appear.
Meanwhile, in the province of Veraguas, the municipal councils of Boro, El Higo, Gatuncito, Santiago, Bisvalles, and La Huaca are mentioned.
In Herrera, the following communal councils are mentioned: Parita, Los Cerros de Paja, Las LLanas and Peñas Chatas.
In the province of Darien, the communal councils of Wargandí, Peña Blanca, Guoroní, Río Sábalo, Jigurundó and Pinogana are mentioned.
In the Guna Yala region are the districts of Puerto Obaldía and Tubuala.
In Bocas del Toro, the districts of Punta Laurel, Bocas del Toro and Barriada Guaymí are mentioned.
As of July 10, the AND had filed a total of 280 complaints involving irregularities in the handling of $200 million.
The anti-corruption prosecutor’s office described the investigation into the use of funds allocated through the parallel decentralization scheme as a complex case.
The Panamanian Association of Business Executives (Apede) called for the discussion on electoral reforms to include a comprehensive review of the recall mechanism, its grounds, deadlines, and guarantees.
In the union’s view, this instrument should be applied under criteria of equity and legality for all equally, in order to strengthen citizen trust and protect democratic institutions.
The statement comes amid a growing number of recall requests filed with the Electoral Tribunal in recent weeks. According to official figures, at least ten requests have been filed against freely elected officials in a period of less than a month.
Although recall is a legitimate citizen right, Apede warned that its intensive and concentrated use in such a short period of time could jeopardize the country’s institutional stability and political representation.
Currently, the Electoral Code establishes that, to initiate a recall process against an elected official, evidence of alleged non-compliance with their mandate must be presented and signatures equivalent to 30% of the electoral roll in the corresponding constituency must be collected.
However, the business association points out that there is a clear asymmetry: while representatives of political parties can only be recalled through internal processes initiated by their own groups, independent candidates can face this procedure at the request of any citizen, without the need for specific justification.
“This inequality undermines the principle of political equality and threatens the legitimacy of a figure that has gained ground as an alternative to traditional parties,” the organization warns.
The Panamanian Chamber of Commerce, Industries, and Agriculture (CCIAP) reaffirmed its support for the right to free union association, but warned that this right is not absolute and cannot be used as an excuse to act outside the law.
“Trade unionism is a pillar of the democratic system and of respect for human dignity. However, a union cannot become a tool of chaos, exerting violent pressure, or imposing agendas above the collective well-being. When they stray from their purpose, they lose legitimacy and betray the workers they claim to defend,” the business association stated in its Sunday column, La Cámara Opina .
The statement follows the Ministry of Labor and Workforce Development’s announcement that it is filing a lawsuit to dissolve the National Union of Construction and Related Industry Workers (Suntracs).
According to the CCIAP (National Commission for the Protection of Workers), in recent years, Suntracs has distorted the purposes for which it was created. “Today, it faces accusations of alleged criminal acts that further aggravate this betrayal of workers. Instead of protecting them, they expose them. Instead of promoting dialogue, they sow conflict. They use blockades, threats, and acts that paralyze the economy and affect the daily lives of thousands of Panamanians,” denounced the organization, chaired by Juan Arias.
They added that these practices generate uncertainty, job losses, production disruptions, and serious social consequences. “And the hardest hit are, ironically, the workers themselves: those who can’t get to their jobs, those who lose their workdays, those whose incomes are affected by the chaos,” they noted.
The Chamber called for a recovery of the essence of unionism as a constructive force that promotes dialogue, negotiation, and respect for the law. “Just as employers are rightly required to act with responsibility, transparency, and honesty, we also demand the same from those who represent workers. Anyone who uses a union to violate the law is not defending workers or citizens; they are betraying them.”
“Panama needs strong unions, yes, but also responsible, ethical, and committed to the common good,” the statement emphasizes.
France has reiterated its commitment to strengthening trade relations with Panama, supporting its removal from the European Union ‘s list of high-risk countries for money laundering , an achievement that French authorities consider “a significant step toward greater institutional transparency and economic stability.”
The French ambassador to Panama, Aude de Amorim , emphasized that this progress “strengthens the confidence of European investors” and opens new doors for economic cooperation.
“Panama and France have a relationship spanning more than 150 years of shared history, from the exploration of the Canal by Lucien Bonaparte Wyse to the current presence of more than 60 French companies in key sectors such as transportation, water, sanitation, energy, and consumer goods,” he stated.
Among the most emblematic projects, the diplomat highlighted the role of Alstom in the construction of the Panama Metro, Suez in water treatment, and Veolia in waste collection.
Also operating in Panama are French companies Thales, NGE, Vinci and their subsidiaries, Servier, Air France/KLM, JC Decaux, L’Oréal, TV5 Monde , and, more recently, Moet Hennesy and Forvis Mazars, which “contribute to strengthening the partnership between our two countries in their respective areas,” he emphasized.
The ambassador announced that the French Economic Week in Panama will be held in September 2025 , organized by the Franco-Panamanian Chamber of Commerce and supported by the embassy. A visit by the French Minister of Foreign Trade is also being planned.