Politics Economy Country 2025-12-02T22:11:16+00:00

Panama's Minister Promises to Investigate Multimillion-Dollar Transfers to Municipalities

Panama's Economy Minister Felipe Chapman responded to reports of multimillion-dollar transfers to certain municipalities, promising an internal review and cooperation with the Comptroller's Office. Deputy Janine Prado demands full transparency.


Panama's Minister Promises to Investigate Multimillion-Dollar Transfers to Municipalities

Minister of Economy and Finance, Felipe Chapman, responded to reports of multimillion-dollar transfers to selected municipalities, which have raised alarms within and outside the Assembly of Deputies. Chapman confirmed that he has already spoken directly with Deputy Janine Prado, who demanded explanations. According to Chapman, the deputy raised her concerns «in a valid way», which is why the Ministry of Economy and Finance (MEF) has launched an internal review. The minister also stated that in Panama, socioeconomic indicators have never been used to decide which municipality receives funds. This raises a major question: under what criteria was that money distributed?

The origin of the controversy: transfers that no one admitted… until now The complaints from independent deputies and former deputy Juan Diego Vásquez brought the issue to public attention. Chapman also indicated that the MEF will not protect anyone, regardless of their position. He even said he would be willing to collaborate with the Comptroller General's Office to audit every cent that went from the Ministry of Economy to local governments.

Prado: «Now it's time to be completely transparent» Deputy Janine Prado, a member of the Budget Committee, demands that the MEF publish the complete list of municipalities and community boards that received funds, how much they received, and under what criteria. Figures exceeding $6 million in detected transfers are being discussed.

«The concerns are valid… and if something improper is found, action will be taken.» They claim that some town halls are receiving direct benefits of thousands of dollars in a kind of «parallel decentralization 2.0». Among the cases mentioned is Pedasí, which would have received $700,000, while San Carlos would have received $300,000.

According to the complainants, all of this was done without clear criteria and without all municipalities being considered equally. Chapman promised an investigation and left the door open to the Comptroller General's Office. The minister, in response to the questioning, promised that the use of the funds will be investigated, and if there are any irregularities, corrective measures will be taken.