In his usual weekly talk, President José Raúl Mulino was direct and to the point: there is and will be no 'parallel decentralization' linked to the transfers of funds that the Ministry of Economy and Finance (MEF) has made to certain municipalities in the country. He recognized that recent questioning has forced the Government to review the mechanism, but assured that what happened opens the door to correct, adjust, and avoid future errors. Mulino did not deny the disbursements. 'We will not allow this to be confused with the parallel decentralization of the past.' Chapman also explained that in Panama only 18 of the 82 municipalities are self-sufficient. That is why he asked to review and strengthen the process. Audit underway: 'it's not an earthquake, but it does need to be clarified' The Comptroller General, Anel Flores, confirmed that they will speed up the audits requested by the MEF, focusing on the more than 6 million dollars transferred between 2024 and 2025. He asked to lower the media and political noise, pointing out that some critics demand audits while delaying their own accountability reports. 'Many here see the speck in another's eye, but not in their own.' Flores insisted that there is no hidden crisis, that the funds are legal, but that they will be reviewed with rigor to clear up any doubt. Government and Comptroller's Office promise new rules Chapman announced that joint guidelines will be drawn up with the Comptroller's Office to improve the traceability and disclosure of the budget allocated to local governments. The goal: for every balboa to be seen, justified, and felt. In addition, the Executive hopes that the reform to Law 3 of 2009 will improve the current mechanisms and allow classifying municipalities based on the Multidimensional Poverty Index, directing resources to those who need them most. The Comptroller General, Anel Flores, confirmed that they will speed up the audits requested by the MEF, focusing on the more than 6 million dollars transferred between 2024 and 2025. He asked to lower the media and political noise, pointing out that some critics demand audits while delaying their own accountability reports. 'Many here see the speck in another's eye, but not in their own.' Flores insisted that there is no hidden crisis, that the funds are legal, but that they will be reviewed with rigor to clear up any doubt. Government and Comptroller's Office promise new rules Chapman announced that joint guidelines will be drawn up with the Comptroller's Office to improve the traceability and disclosure of the budget allocated to local governments. The goal: for every balboa to be seen, justified, and felt. In addition, the Executive hopes that the reform to Law 3 of 2009 will improve the current mechanisms and allow classifying municipalities based on the Multidimensional Poverty Index, directing resources to those who need them most. But Chapman accepted something key: even by following the steps, the funds can be used differently than intended. On the contrary, he confirmed them, but recurred that the amounts are not comparable to those handled in the previous administration. With a serious tone, he underlined: 'Thank God, the amounts are not even close to those handled here before, but they were handled, and that is important to review the issue and prevent it from repeating.' Chapman: 64 municipalities depend on the State and there will be clear corrective measures The Minister of Economy and Finance, Felipe Chapman, took up the conversation with a firm message: the controversy will be addressed with seriousness. He indicated that investigations will be opened to correct any practice that may lend itself to suspicions of mismanagement or confusion with political clientelism. 'Any practice that deviates from the law will be corrected.'
