CSS Fraud Scheme: 52 Irregular Pensions Over $10 Million

The Social Security Fund (CSS) filed criminal complaints with the Public Ministry after detecting a fraudulent scheme involving the irregular alteration of computer records and the improper allocation of worker-employer contributions. This resulted in the approval of 52 irregular pensions, with an estimated economic impact of over $10 million. It was reported that the complaint filed with the Prosecutor's Office suggests possible crimes against the economic order, computer security, as well as embezzlement, corruption of public officials, and document forgery, among other qualifications that may arise from the investigative process. The institution also highlighted that there were alerts in previous administrations about this type of irregularity that were not taken seriously, allowing these practices to continue. The General Director of the CSS, Dino Mon Vásquez, explained that the findings do not correspond to isolated administrative errors, but rather evidence an organized fraud pattern, presumably executed in collusion with institution officials and third parties, through the creation of supposed non-existent labor relations, even using data from deceased people, with the aim of generating illegitimate pension rights. "Every balboa that is illegally diverted is a direct blow to the sustainability of the system and the trust of Panamanians," Mon said. The CSS formally requested the Public Ministry to carry out forensic computer audits, to investigate current or past officials and third-party beneficiaries, as well as to adopt urgent measures to safeguard digital and documentary evidence. According to preliminary internal investigations carried out by the current administration, between $3 and $4 million has already been paid out in pensions as a result of systematic manipulations in the institution's computer systems. "We will not tolerate mafias or corruption networks that attack the funds of the insured."